The Price at Which Shares of an Open-End Mutual Fund

question 66

Multiple Choice

The price at which shares of an open-end mutual fund are issued and redeemed is based on the fund's _____.

• A) face value per share
• B) coupon rate
• C) net asset value per share
• D) current yield

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Definitions:

Bad Tendency Rule

Legal doctrine that permits the restriction of freedom of speech if the speech in question has a tendency to incite crime or disturb the public peace.

Strict Scrutiny Test

A form of judicial review that courts use to determine the constitutionality of certain laws, requiring the law to be narrowly tailored to serve a compelling governmental interest.

Clear And Present Danger Test

A legal standard that determines under what circumstances limits can be placed on First Amendment freedoms of speech, press, or assembly.

Necessary And Proper Test

A constitutional doctrine that allows Congress to make laws deemed necessary and proper for executing its enumerated powers.