MODULE 3

MULTIPLE CHOICE:

1. What is the 7th important financial steps for you to take before you invest so you get the most
from your mutual fund investments?

a. Assess the risk you’re comfortable with

b. Consider other “investment” possibilities
c. Determine how much you’re saving
d. Examine your spending and income

2. Mutual funds are goal-specific tools, and humans are goal-driven animals, which is perhaps why
the two make such a good match.

a. Review your insurance coverage

b. Pay off your consumer debts
c. Figure out your financial goals
d. D. Consider other investment possibilities

3. It includes balances on such items as credit cards and auto loans. If you carry these types of
debts, do not invest in mutual funds until these consumer debts are paid off.

a. Consumer debts
b. Mortgage loan
c. Savings
d. Insurance

4. For most people, __________is the more feasible option.

a. Reducing spending
b. Reducing savings
c. Pay off consumer debts
d. None of the above

5. It is an emergency reserve.

a. Saving for a home

b. Investing for retirement
c. Financial Pillow
d. None of the above
6. Making ________contributions reduces your tax bill, effectively giving you more dollars with
which to accomplish your various goals.

a. Retirement account
b. Savings account
c. Mortgage loan
d. Financial goals

7. If you need to tap into the money within two or three years or less, a money market or
__________ may fit the bill.

a. Long-term bond
b. Long-term account
c. Short-term bond
d. Short-term account

8. If your time horizon falls between three and seven years, you want to focus on __________.

a. Bond Market
b. Bond Funds
c. Equity Funds
d. Balanced Funds

9. For long -term goals. Seven or more years down the road, __________ are probably your ticket.

a. Bond Funds
b. Bond Market
c. Stock Funds
d. Stock Market

10. The ideal savings vehicle for your emergency reserve fund is.
a. Investing
b. Capital Market
c. Stock Market
d. Money Market Fund
TRUE OR FALSE:

11. Saving and investing is psychologically rewarding and makes many people feel more secure.
TRUE
12. Determine how much you’re saving is not included in financial steps. FALSE (Determine how
much your savings is included in financial steps)
13. The single biggest mistake that mutual fund investors make is investing in funds before they’re
even ready to. TRUE
14. Most people find saving money is not challenging. FALSE (challenging)
15. A place to call your own is certainly the most tangible element of a Filipino dream. TRUE

MODULE 4

Multiple choice
1. The Investment Company Institute, a mutual fund trade association, conducted a survey that asked
mutual fund buyers what info they reviewed about a fund before purchasing it?
a. evaluating gain-eating cost
b. losing the load
c. fund’s operating expenses
2. The funds they sold are known as?
a. Exposing loads
b. Loads deducted
c. load funds
3. One cost of fund ownership that you simply can’t avoid is operating expenses?
a. Total Fund Operating Expenses
b. Considering a fund’s operating expenses
c. fund’s operating expenses
4. are quoted as a percentage of the fund’s assets or value.
a. Total Fund Operating Expenses
b. Considering a fund’s operating expenses
c. fund’s operating expenses
5. a fund’s performance, or its historic rate of return, is certainly an important factor to weigh when
selecting a mutual fund, investors tend to overemphasize its importance.
a. Exposing loads
b. Loads deducted
c. Weighing Performance and Risk
6. The resources and capabilities of the parent company should be equally important in your selection of
which funds to invest in.
a. Exposing loads
b. Recognizing the Fund Manager and Fund Family Expertise
c. Weighing Performance and Risk

7. require every fund to issue a prospectus, and the SEC reviews the details of every single one.
a. Reading Prospectuses — the Important Stuff, Anyway
b. securities laws
c. Weighing Performance and Risk
8. a pamphlet or brochure that provides information about a mutual fund.
a. mutual fund prospectus
b. mutual fund
c. fund
true or false
9. table of contents is you know how recent the information is. False
10. date helps you navigate the prospectus to find whatever information you want. False
11. The fund profile pages contain a synopsis of the main attributes of the fund, such as a description of
the fund’s investment objectives and the strategies. True
12. The Total Return represents what investors in the fund have earned historically. True
13. The Total Return represents what investors in the fund have earned historically. True
14. Funds also produce annual reports that discuss how the fund’s been doing and provide details on
the specific investments that a fund holds. True
15. The Statement of Net Assets section lists every investment the fund owns. True

MODULE 3 AND MODULE 4 IDENTIFICATION

1. The ________________ section lists every investment the fund owns. Statement of Net Assets
2. The ________________ contain a synopsis of the main attributes of the fund, such as a
description of the fund’s investment objectives and the strategies. fund profile pages
3. A pamphlet or brochure that provides information about a mutual fund. Prospectus
4. The ideal savings vehicle for your emergency reserve fund is ________. Money Market Funds
5. Making ________contributions reduces your tax bill, effectively giving you more dollars with
which to accomplish your various goals. Retirement Acoount
6. For most people, __________is the more feasible option. Reducing Spending
7. __________ are quoted as a percentage of the fund’s assets or value. fund’s operating
expenses
8. For long -term goals. Seven or more years down the road, __________ are probably your ticket.
Stock Funds
9. If you need to tap into the money within two or three years or less, a money market or
__________ may fit the bill. Short term Bond

16. If your time horizon falls between three and seven years, you want to focus on __________.
Bonds Fund