The KLM Mutual Fund Has a Net Asset Value of $12.34

question 41

Multiple Choice

The KLM Mutual Fund has a net asset value of $12.34 and an offer price of $13.34.Use this information to answer the following questions.

• A)
• How many shares will you receive when you invest $1,000?
• B)
• What is the immediate asset value of these shares?
• C)
• What is the load charge for this transaction?

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Definitions:

Fractional Reserve Banking

A banking system where banks hold a fraction of deposits as reserves and use the rest to make loans and create new money, underpinning most modern banking systems.

Federal Reserve Bank

The central banking system of the United States, responsible for regulating the nation's financial institutions and managing the country's monetary policy.

Unit Of Account

A commonly used numerical value that measures the market price of goods, services, and various transactions.

Commodity Money

Money that has intrinsic value because it is made of a commodity with its own value, such as gold or silver.