Title: QUIZ: Mutual Benefit -- No Frills Money Skills Video Series
Course: Andria Testing FRE2 > Section: Mutual Benefit -- No Frills Money Skills Video Series

Q: Which of the following is a benefit of investing in mutual funds?
- Diversification
- No risk of loss
- F.D.I.C insurance
- Guaranteed returns 
A: Diversification

Q: Which of the following best describes an investment company?
- A company that provides funds for business expansion and investment
- A company that issues credit cards charging minimal interest to shareholders
- A company that makes loans to customers and shares its profits with shareholders
- A company that collects and pools money from many investors and invests in stocks, bonds, and other assets 
A: A company that collects and pools money from many investors and invests in stocks, bonds, and other assets 

Q: What is the difference between actively managed funds and index funds?
- Index funds do not have sales load fees associated with them.
- Actively managed funds do not attempt to outperform the market like index funds.
- Index funds attempt to match the returns of stock indexes like the Dow Jones Industrial Average.
- Actively managed funds have consistently outperformed index funds over the last several decades.
A: Index funds attempt to match the returns of stock indexes like the Dow Jones Industrial Average.

Q: Sales charges are paid when an investor sells the mutual fund shares in which of the following type of funds?
- No-load fund shares
- Front end load shares
- Deferred sales load fund shares
- Broker commission load shares
A: Deferred sales load fund shares

Q: When employees’ contributions into a retirement account the waiting time before employees are entitled to all the funds is a process called:
- Tenure
- Vesting
- Probation
- Conferring 
A: Vesting

Q: If you withdraw money from a tax-advantaged account you may have to pay a penalty for doing so. The penalty is:
- 5%
- 10%
- 25%
- 20%
A: 10%

Q: True or False: It is not possible for some investments within a mutual fund to decline in value while others increase in value.
- True
- False
A: False

Q: True or False: Any employer match in a retirement account for employees is essentially free money to the employee.
- True
- False
A: True

Q: True or False: If you earn income from mutual fund investments you will probably have to pay income taxes.
- True
- False
A: True

Q: True or False: Some types of mutual funds and retirement accounts have different tax implications.
- True
- False
A: True