Conservative Mutual Fund Products and Related Concepts

What are the main types of conservative mutual fund products mentioned?

• Equity Funds, Index Funds, Hedge Funds

• Money Market Funds, Mortgage Funds, Bond Funds

• Real Estate Funds, Commodity Funds, Growth Funds

• Balanced Funds, Sector Funds, International Funds

What is one of the learning objectives related to money market mutual funds?

• Compare and contrast the features of equity and bond funds

• Differentiate the two methods of calculating yield of money market funds

• Analyze the growth potential of international funds

• Evaluate the risk factors of hedge funds

Which concept is important for understanding the impact of interest rate risk on fixed-income securities?

• Liquidity

• Duration

• Diversification

• Capitalization

What is the term for the risk associated with changes in interest rates affecting the value of investments?

• Default risk

• Interest rate risk

• Market review

• Volatility

Which type of mortgage allows the borrower to pay off the loan at any time without penalty?

• Closed mortgage

• Conventional mortgage

• Open mortgage

• Non-conventional mortgage

What is the term used to describe the additional return expected from a bond over a risk-free rate?

• Basis points

• Capital gains

• Effective yield

• Bond funds

Which type of fund primarily invests in short-term debt securities?

• Money market fund

• Preferred dividend funds

• Corporate bonds

• Fixed-income funds

What is the term for the profit realized from the sale of securities or investments?

• Amortized cost

• Capital gains

• Current yield

• Duration

What is the primary focus of money market mutual funds according to the Canadian Investment Funds Standards Committee (CIFSC)?

• Investing in long-term securities

• Investing in high-risk stocks

• Investing at least 95% of their total net assets in money market securities

• Investing in real estate

Which of the following is NOT a characteristic of money market securities?

• High liquidity

• Long-term maturity

• Short-term interest rate sensitivity

• Low default risk