SIE Exam Lesson 18 Mutual Funds pt 1 Quiz

SIE Exam: Securities Industry Essentials Exam Lessons and Information

SIE Exam Lesson 18 Mutual Funds pt 1 Quiz SIE Exam Lesson 18 Mutual Funds pt 1 Quiz This is a SIE Exam Lesson 18 Mutual Funds pt 1 Quiz, See how you do if you need help listen to the lesson over. Questions covered include 1. Which of the following is an example of a mutual fund? (Select all that apply.) A. corporate bond fund B. balanced fund C. hedge fund D. junk bond fund 2. Which of the following is an example of an income fund? (Select all that apply.) A. 12b-1 fund B. bond income fund C. government bond income fund D. utility stock income fund 3. Which of the following is an example of an open-end fund? (Select all that apply.) A. 12b-1 fund B. accumulated fund C. fee-based mutual fund D. no load fund 4. Which of the following is a requirement in putting up an investment management company? (Select all that apply.) A. custodian bank B. financial lawyer C. investment advisor D. underwriter 5. It is anybody who has the ability to sponsor the mutual fund. A. custodian bank B. investment advisor C. selling group D. underwriter 6. It is the document which outlines everything that the client needs to know about the mutual fund. A. Investment Company Act of 1940 B. investment management company indenture C. mutual fund contract D. prospectus 7. Which of the following is contained in the prospectus? (Select all that apply.) A. systematic withdrawal plan B. the name of the investment advisor and the custodian bank and their respective fees C. the type of mutual fund D. whether the fund is a diversified fund or not 8. The objectives of the fund is already fixed in the prospectus and can never be changed until all the funds are withdrawn. A. True B. False 9. Buying a mutual fund is buying a bond. A. True B. False 10. Mutual funds are not traded. A. True B. False SIE Exam Lesson 18 Mutual Funds pt 1 Quiz cont. 11. Mutual funds allow the investor to switch within the family of funds with no sales charge. A. True B. False 12. In an open-end fund, there’s a one-time fee that the underwriter will get for selling the shares in that fund. A. True B. False 13. No load funds have no ___. A. asking price B. bid price C. net asset value D. sales charge 14. The maximum sales charge for loaded funds is ___. A. 6 ¼ % of the net asset value B. 6 ¼ % of the public offering price C. 8 ½ % of the net asset value D. 8 ½ % of the public offering price 15. If a loaded fund chooses to charge the maximum sales charge, it is also required to offer ___. (Select all that apply.) A. breakpoints B. letter of intent C. principal reinvestment D. rights of accumulation 16. Which of the following is true about breakpoints? (Select all that apply.) A. It can be obtained by investment clubs. B. It is calculated only for individual investors. C. It is detailed in the prospectus. D. There is an increasing sales charge as the dollar amount goes up. 17. The maximum length on the letter of intent is ___. A. 12 months excluding 30 days backdating B. 12 months including 30 days backdating C. 13 months excluding the 90 days backdating D. 13 months including the 90 days backdating 18. Which of the following is a characteristic of a diversified fund? (Select all that apply.) A. Five percent or more of its assets can be invested in anyone issuer. B. It has a fixed payment date. C. Maximum of 10% of the voting shares of anyone issuer is allowed in the funds. D. Seventy-five percent or more of its assets must be invested in securities. 19. Which of the following is the ideal type of 12b-1 fund for long-term investors? A. Class A B. Class B C. Class C D. Class D 20. Which of the following mutual fund sales practices is prohibited by the Investment Company Act of 1940? A. accepting late orders after the market closes B. offering a reduced sales charge if a client gets above a breakpoint C.