You Wish to Invest $17,445 in a Mutual Fund with a NAV

question 42

Multiple Choice

You wish to invest $17,445 in a mutual fund with a NAV of $26.03. The fund charges a front-end load of 4.50 percent. How many fund shares will you receive?

• A)595
• B)640
• C)616
• D)668
• E)628

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Definitions:

Destroyed Money

Money that has been taken out of circulation, either physically by damage or dematerialization, or digitally by central authorities to control the money supply.

Liquidity Trap

A scenario where low interest rates and high savings rates make it difficult for monetary policy to boost economic growth.

Speculative Demand

The demand for goods, services, or assets based not on their fundamental value but on the expectation that their price will increase in the future.

Precautionary Demand

The demand for liquid assets or money for the purpose of meeting unforeseen emergencies or taking advantage of unexpected opportunities.