The Difference Between a Load Fund and a No-Load Fund

question 89

Multiple Choice

The difference between a load fund and a no-load fund is that

• A)load funds invest in a variety of securities while no-load funds limit their investments to common stocks.
• B)load funds borrow money to increase their portfolio,while no-load funds do not.
• C)you buy no-load funds at their net asset values,but you pay more than net asset value when you buy load funds.
• D)no-load funds can be purchased anywhere,but load funds must be purchased through a stockbroker.

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Definitions:

World War II

A worldwide war that occurred between 1939 and 1945, engaging the majority of the world's countries, including all major powers, which eventually split into two conflicting military coalitions: the Axis and the Allies.

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another currency.

Purchasing Power Parity

A theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Exchange Rate

The price at which one country's currency can be exchanged for another country's currency.