1. Name the four main types of mutual funds. Describe each type.
2. If the nominal rate on a one-year risk-free bond is 14.5% and the expected inflation is 6%, what is the real rate demanded by lenders? ?
3. How does reserve requirements protect a bank? Explain why the Fed requires reserves on demand deposits but not on time deposits or savings accounts. ?
4. What is the difference between measuring a mutual fund’s performance relative to a peer group versus an index?
5. What is a mutual fund investment objective? Name several peer groups based on investment objectives.