As a Money Management Fee, How Much Do Mutual Funds

question 57

Multiple Choice

As a money management fee, how much do mutual funds usually charge their customers?

• A) between 0.5 and 3.0 percent of assets each year
• B) between 1.5 and 3.0 percent of assets each year
• C) nothing, because they receive commissions from the firms whose stock they buy
• D) a flat fee of about $50

Understand the impact of stock transactions (including reacquisitions and sales) on a company's financial statements.

Analyze and prepare retained earnings statements and understand the effects of dividends on retained earnings.

Develop the ability to prepare the Stockholders' equity section of the balance sheet accurately.

Calculate and interpret earnings per share (EPS) for a company.

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Definitions:

Savings Exceeds Investment

Describes a situation in which the amount of income saved by individuals or entities surpasses the amount being invested, which can indicate caution or a lack of attractive investment opportunities.

Keynes

John Maynard Keynes was a British economist whose ideas, known as Keynesian economics, had a major impact on modern economic and political theory and on fiscal policies of governments.

Demand

The desire and ability of consumers to purchase goods or services at a given price.

Unemployment

The state of being without a job despite actively looking for work, used as an indicator of the health of the economy.