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1. A(n) ________________ mutual fund invests funds in short-term securities like Treasury bills, jumbo CDs, and commercial paper.

A. REIT B. hybrid fund C. closed-end investment company D. equity mutual fund E. money market mutual fund

2. A(n) __________________ has customer demand for the shares determining the number of shares outstanding.

A. general partnership B. limited partnership C. open-end D. REIT E. closed-end

3. A no-load mutual fund:

A. has zero operating expenses. B. is typically marketed directly to customers, charging no commission. C. is a type that no longer exists. D. does not invest in common stocks. E. has a zero or negative rate of return in the most recent year.

4. Fees considered 12b-1 fees are:

A. fees that investment companies must pay to the SEC. B. fees charged by some mutual funds, due to distribution and marketing costs. C. up-front load fees, charged by some mutual funds. D. back-end load fees, charged by some mutual funds. E. fees charged by mutual funds, to compensate the portfolio manager.

5. Verysmall Mutual Funds investment portfolio is comprised of the following: 1,000 shares of General Mills (GIS, current price is $50 per share); 3,000 shares of Bank of America Corp (BAC, current price is $30 per share); and 2,500 shares of United Airlines Holdings (UAL), current price is $90 per share). Verysmall Mutual Fund has sold a total of 15,000 of its own shares to customers. What is Verysmall Mutual Funds net asset value?

A. $21.00 B. $24.33 C. $41.67 D. $40.56 E. $125.00

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