Open-End Mutual Funds

question 45

Multiple Choice

Open-end mutual funds

• A)require that NAV consider the amount of discount or premium in the share value.
• B)calculate the NAV based on the total value of assets held divided by the number of fund shares outstanding.
• C)may experience fluctuations in the number of shares outstanding on a daily basis.
• D)All of the above.
• E)Answers B and C only.

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Definitions:

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period.

Store of Wealth

An asset or commodity that retains value over time and can be used to preserve or store purchasing power for the future.

Pay Cycle

The regular interval at which an employee receives their salary or wages from their employer.

Equation of Exchange

An economic formula representing the relationship between the money supply, its velocity (rate of circulation), the price level, and the number of transactions over a period.