which statements are true regarding money market funds?

A A. An interval fund is a newer type of fund structure that is classified as a closed-end fund, but it has many open-end fund features. Exchange Traded Funds, as the name says, trade on stock exchanges. Mutual funds offer various share classes to investors. D Investment clubs cannot group purchases for a breakpoint, nor can investment advisers group their customers purchases. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares dividends at POP and capital gains at POP. So why would an investor buy into such a fund? For the customer exchanging Government Bond Fund shares for Growth Fund shares, a tax event has occurred. Convey the obligation to deliver the asset She is retired with no dependents, living on a fixed pension of $35,000 per year. Acme $9.90 10.25 +.10 dividends at Net Asset Value and capital gains at the Public Offering PriceD. I The expected payments from the retirement plan are in excess of the expected future assets in the plan D. II and IV, D. II and IV annually, Which statement is TRUE about the taxation of dividends, interest and capital gains in the separate account during the accumulation phase? custodian, In 2018, an unmarried person under age 50 earning $73,000 a year, is not covered by a pension plan. This contrasts to a closed end fund, where the fund is traded in the market like any other stock. Note that most funds process redemptions much more quickly than this. (a) Justify $10,500. If market prices remain constant, the plan will produce a lower average per share costB. $745 II and III only. Hedge funds offer higher returns coupled with higher risk and are only sold to accredited (wealthy, sophisticated) investors who understand the risks involved. $10 plus a commissionC. Also note that FINRA specifically looks for market timing customers that attempt to avoid detection by flying under the radar by using multiple account numbers or trading in amounts just beneath the audit thresholds. Both open-end and closed-end funds compute Net Asset Value per share daily. to change the separate account's investment objective Friday, June 16C. A It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares D C III Hedge fund managers are compensated based on a percentage of capital appreciation in the fund The customer must be paid the money from the fund company within how many business days? Over the past 5 years, the fund has appreciated to $46,000. Which of the following customers is NOT allowed a breakpoint on mutual fund purchases? Using the redemption price of $15 per share x .95 = $14.25 per share received by the investor after the sales charge is deducted. People cannot group together to get a breakpoint. The fund can trade at a discount to Net Asset Value when investors become disenchanted with the fund. Which of the following statements is true with regard to financial markets? Letter of IntentD. I The Net Asset Value per share is . Which of the following statements is (are) correct concerning hedge funds? II and IV. yesterday's opening Net Asset Value Which of the following statements are TRUE regarding the Federal tax treatment of regulated mutual funds? Dividends and interest are tax deferred; capital gains are taxable in the year received due to required industry firewalls, registered representatives are prohibited from talking to the administrative personnel of mutual fund companies. use aggressive investment strategies and have higher riskC. In order to be regulated under Subchapter M of the IRS Code, at least how much of the Net Investment Income must be distributed to the mutual fund shareholders? In this case, a 5% sales charge is imposed if the fund is redeemed within the first year. One section of this release would have to be devoted to a study of the Commission's 2010 money market amendments ("2010 Amendments") to gather data and ascertain their effectiveness. IV open-end management companies, A. I and III traded on exchangesD. They are a source of profit for a dealer. True A money market fund's . 10 business days. Multiple select question. It is a type of structured product offered by banks that gives a return tied to a benchmark index. Both open-end and closed-end management companies use an investment adviser to manage a portfolio within the funds stated objectives. For the most part, money markets provide those with fundsbanks, money managers, and retail investorsa means for safe, liquid, short-term investments, and they offer borrowersbanks, broker-dealers, hedge funds, and nonfinancial corporationsaccess to low-cost funds. Which of the following investments is the most illiquid? Which statements are TRUE regarding closed end investment companies? I At least 40% of the Board of Directors must be non-interested personsII At least 60% of the Board of Directors must be non-interestedIII To establish a fund, a minimum of $10,000 of Total Net Assets is requiredIV To establish a fund, a minimum of $100,000 of Total Net Assets is required. Which of the following statements are correct regarding commercial paper? Management companies are either open-end or closed-end. I ETNs have both credit risk and market riskII ETFs have both credit and market riskIII ETNs have only market riskIV ETFs have only market risk, A. I and II onlyB. You can argue this one either way, but we go with the fund of hedge funds. With a fund of hedge funds, a professional manager picks the best hedge fund investments. c. They have management fees higher than other mutual funds. Closed-end funds have a one-time stock issuance and the fund is closed to new investment. III and IV onlyD. The bid price of a mutual fund is $14.30 and the ask price is $15.50. He or she should elect which type of withdrawal plan? III Capital Gains C I Shares are issued in a one-time offeringII Shares are continually issuedIII Shares trade on an exchange or over-the-counterIV Shares are redeemed with the issuer. $745 plus commission I Family of FundsII BreakpointsIII Letter of IntentIV Rights of Accumulation, A. I and II onlyB. Listed REITs offer all of the following benefits to purchasers EXCEPT: A. diversification of investmentsB. Which statements are TRUE regarding money market funds? This will occur if the fund gives an inferior return. Both Treasury bonds and Treasury notes can be sold in increments of $100. An inverse ETF based on the price movements of 20+ year Treasuries would have the largest profit when interest rates rise. They are structured as private placement limited partnerships that are only available to wealthy accredited investors. The second digit is a 2. She should be informed that hedge funds: I offer higher returnsII are high-risk investmentsIII are lightly regulatedIV are like mutual funds. Tax deductibility of contributions made to the contract if distributions are not taken until age 59 1/2 or later The representative tells the hedge fund customer of the conversation, after which the customer places daily orders to buy and sell that fund's shares in amounts of $750,000. III and IV onlyC. Multiple select question. for the Board of Trustees futures contracts but not call options I and IV $1,802 plus a commissionC. B. III and IV D. II and IV, Exchange Traded Funds (ETFs) are: A. ETFs are registered under the Investment Company Act of 1940B. To prevent market timing, most mutual funds have placed restrictions on excessive trading in their prospectuses and monitor accounts for excessive short-term trading. At a predetermined time, the interest rate is decreased to a rate that is at, or below, the market C. At a predetermined time, the maturity is decreased or "stepped down" D. The customer will pay $10.075 per share (rounded). D The note is a debt of the bank, and is backed by the faith and credit of the issuing bank. D. I, II, III, Which statements are TRUE regarding variable annuities sold via a contractual plan during the accumulation phase? Thus, closed-end funds can trade at NAV; below NAV; or above NAV. Which statements are TRUE when comparing an index mutual fund to an index exchange traded fund? Ask; Redemption Price. The note is a debt of the bank, and is backed by the faith and credit of the issuing bank. The manager of the fund, not having to worry about redemptions, can make less liquid, more risky investments similar to hedge funds. Which statement is TRUE regarding the ex date for a mutual fund? I and II only CMO planned amortization class tranche It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively traded everyday. money market funds are typically sold without a sales charge Offering Price, Contributions to Keogh Plans must be made by: If a fund adopts a 12b-1 plan it may charge its existing shareholders for the cost of soliciting new investment to the fund. II and IV The maximum offering price per share is: A) ETF indexes allow the investor to easily become fully diversified. 0 B. Dollar cost averaging results in slightly more shares being bought as prices fall than when prices rise. All of the following statements are true about "odd lot" transactions EXCEPT: D. odd lot commissions are set by the NYSE. C Thus, these are illiquid securities because an investor cannot trade out the position, nor can the investor redeem the position at any time. Which statement is TRUE regarding this situation? B C The two types of ________ bonds are 1) foreign bonds which are issued in foreign countries but in the currency of the investor and 2) Eurobonds which are denominated in a currency other than that of the country in which it is issue. At the market opening, a customer purchases 200 shares of an S&P 500 Inverse ETF (-1x) at $50 per share. A. B However, when buying or selling an exchange traded fund, there is a commission cost; whereas when buying or redeeming a mutual fund there is no charge if the fund is no-load or there can be a sales charge. D semi-annually ______ mortgages satisfy certain underwriting guidelines before they may be purchased by Fannie Mae or Freddie Mac. This is the vehicle for trading foreign stocks in the U.S. An ARS is an Auction Rate Security and a VRDO is a Variable Rate Demand Obligation. II and IV, The owner of a variable annuity has all of the following rights EXCEPT the right to vote: For individual investors, the. Total Expenses / Total Net Assets. An individual wishes to have a fixed portion of the portfolio liquidated each month. This action is: A. appropriate for the customerB. $5,500 for the wife; $5,500 for the husband 20 years to the annuitant or beneficiary, All of the following sources of REIT income are counted towards the 75% test required by Subchapter M EXCEPT: The plan requires that a constant dollar amount be maintained in equity securities, with any excess invested in debt. If the securities in the fund portfolio pay dividends, these are received by the Fund. Purchase Amount Sales Charge Nonconforming; subprime II Distributions to mutual fund shareholders are tax deferred III Mutual funds can be sold short; exchange traded funds cannot be sold short monthly The receipt of these monies into the Fund increases NAV per share, exactly offsetting the reduction of the share price on ex date by the exchange where the company that paid the dividend trades. The representative has committed a violation known as a breakpoint saleD. Money market investing carries a low single-digit return. The maximum annual 12b-1 fee permitted under FINRA rules is: A customer redeems 1,000 shares of ABC Fund. ETFs have been increasing in popularity as compared to traditional mutual funds because of their low cost (low expense ratios). The best recommendation would be: Any purchaser would pay the prevailing market price (which can be below, at, or above Net Asset Value) and would have to pay a commission to have the trade executed. fund has made dividend distributions to shareholdersD. $1,918D. The initial offering of closed end investment company shares is made under a prospectus. I The capital gain is taxable if it is taken as a checkII The capital gain is not taxable if it is taken as a checkIII The capital gain is taxable if it is automatically reinvested in the fundIV The capital gain is not taxable if it is automatically reinvested in the fund. B. an autobiographical sketch of Ivan Ilych. They can be purchased indirectly through mutual funds. Investments can include short-term U.S. Treasury securities, federal agency notes, Eurodollar deposits, repurchase agreements, certificates of deposit, corporate commercial paper, and obligations of states, cities, or other types of municipal agenciesdepending on the focus of the fund. I and IV onlyC. To compute the new offering price with the reduced sales charge, the formula is: Net Asset Value $14.30 $14.30- = = = $15.294100% - Sls Chrg % 100%-6.5% .935 Nw Prc, $31,000 purchase amount / $15.294 price per share = 2,027 shares purchased. The formula to find the offering price is: The ex-date is the day on which the Net Asset Value per share increases. A The broker should respond that the Specialist (DMM) on the NYSE floor: The national average interest rate for savings accounts under. II and IV, A customer has purchased $25,000 of a mutual fund. DIAmonds is the trade name for the DIA - Dow Jones Industrial Average Exchange Traded Fund. 12b-1 fees are permitted under SEC Rule 12b-1. Which statements about preferred stock are true? A customer places an order to buy mutual fund shares directly from the fund wholesaler, and therefore does not use a broker-dealer included in the funds selling group. Redemption of shares should have no effect on NAV per share. (past tense of try). fixed or participating. I Asset depreciationII Asset appreciationIII Capital gains distributionIV Dividend distribution, A. I only B. I and IIC. Initial payments are made at an interest rate that is above the prevailing prime rate but stepped down to the Treasury rate over time B. C. REITs are similar to open-end funds, with shares redeemable at NAV. And the fees charged are more similar to hedge funds than a traditional closed-end fund as well - with annual ongoing fees averaging 3%, and another average 2% fee when shares are redeemed (and this ignores the up-front sales charge that is imposed when the shares are purchased!). A True false question. _______ bonds give the firm the option to repurchase the bond from the holder at a stipulated call price. $7,500, If the actual interest rate earned in the separate account underlying a variable annuity contract is higher than the "AIR" the annuity payment: Corporations may exclude 70% of dividends received from domestic corporations from taxable income. annual management fee against net assets of 20% plus a performance fee based on 2% of profits. It appears that the hedge fund is engaging in the prohibited practice of market timing of mutual fund shares The letter can extend for a maximum time period of 13 months, inclusive of the 90-day backdating. I The income yield of the fund consists of both the dividend distributions and the capital gains distributionsII If you buy the fund with a few friends, the purchase will be large enough for a breakpointIII Buy the fund shares now just before the dividend is paid so you can get immediate incomeIV Buy shares of different funds of the same sponsor and the total purchase qualifies for a breakpoint, A. I and IIIB. may correspond to ownership of a fraction of a foreign share The most important factor to consider when selecting a mutual fund is: A. investment objectiveB. I Distributions to mutual fund shareholders are taxable to the holder in the year the distribution is made Which statement is TRUE? IV Hedge fund managers can only be compensated based on a percentage of assets under management Correct Answer C. Fixed percentage The representative has acted properly - no additional disclosures are required to be made to the customerB. These are fund shares that trade like any other stock. Redeemable securities are continuously issued by open-end management companies - mutual funds. All fund shares must be priced in accordance with the rules written under the Investment Company Act of 1940 - for example, mutual fund shares must be forward priced under these rules. will decrease Total Expenses - Total Net AssetsD. Identify the statements that describe the similarities between Treasury bonds and Treasury notes. B Money Market Yield: The interest rate earned by investing in securities with high liquidity and maturities of less than one year such as negotiable certificates of deposit , U.S. Treasury bills . Open-end funds continuously issue and redeem shares. Under FINRA rules, all of the following statements are true EXCEPT: A. the wholesaler must be a registered FINRA memberB. are certificates traded in US markets representing ownership in shares of domestic companies. Mutual funds send their financial statements (describing how the fund performed) to shareholders semi-annually. >$45,000 - $65,000 5 % The representative tells the hedge fund customer of the conversation, after which the customer places daily orders to buy and sell that fund's shares in amounts of $750,000. It offers its shares continuously like an open-end fund. The ratio really represents that portion of the funds return on net assets that is eaten up by expenses. Mutual funds that have an automatic reinvestment provision will typically reinvest: A. only dividends at Net Asset ValueB. A customer who places an order to buy 100 shares of Acme Fund will pay approximately: B II and III. I, II, III, IV. continuously issues and redeems its own shares. II and III Though such market timing is not technically illegal, FINRA has taken the view that this activity can hurt existing fund shareholders because it can dilute the value of the existing shares. However, the majority of hedge funds still charge a performance fee based on profits, not a performance fee based on exceeding a benchmark index. Correct Answer B. I and IV A balanced fund is one that: A. invests in securities found in one industry or geographic area B. allocates investment among common stocks, preferred stocks, and bonds of companies in various industries C. sells futures on market indices and uses short sales to limit risks of long positions D. invests solely in the common stocks of companies that Acme $9.90 10.25 +.10 b. II and IV only, Which statements are TRUE regarding hedge funds? I and IV Which statement is TRUE regarding contributions to Individual Retirement Accounts for these persons? $1,025C. Ask price= Bid (NAV) / 100% - Sales charge % The reality is that, for most funds which have adopted 12b-1 plans, expenses have risen faster (due to the selling expense costs charged to shareholders) than asset size, and expense ratios have increased. $50,001 - $100,000 4% Hedge funds are completely illiquid investments. II and III. A customer buys $10,000 of Government Bond Fund shares from Acme Investors, a fund sponsor and broker-dealer. D. Fixed dollar, ERISA regulations cover: Compare the unit sales to the units produced and keep a running total. The manager of the fund, not having to worry about redemptions, can make less liquid, more risky investments similar to hedge funds. The normal ex-date of 2 business days prior to record date does NOT apply because there is no trading of mutual fund shares. A 22-year old, unmarried, new customer contacts you, explaining that he just inherited $10,000,000 and wishes to invest the money aggressively to produce superior returns. Real Estate Investment Trusts must distribute at least 90% of their Net Investment Income to shareholders; and invest at least 75% of their assets in real estate activities; to be regulated under Subchapter M. REITs can invest in all of the following EXCEPT: A. mortgagesB. Most are AMEX listed (now renamed the NYSE American), but there are ETFs on the NYSE and NASDAQ as well. I and IV ready marketability of sharesC. I a mutual fund IV based on the Standard and Poor's 500 Index Which of the following statements is true regarding money market funds? Thus, they are similar to closed-end investment companies under the Investment Company Act of 1940, except that investments are made in real estate and mortgages, instead of in securities. hedge fund. You could also argue that funds of hedge funds have 2 layers of fees, whereas a direct hedge fund investment only has 1 layer of fees, so it is less costly and is the better choice. Hedge funds started in the 1990s and the managers produced superior returns and were able to charge high fees. Which of the following may have caused the increase? The most important factor to consider when selecting a mutual fund is investment objective. I, II, III, IV. II the price of the stock fluctuates II, III, IV D. Inverse (Short) 20+ Year Treasury ETF, D. Inverse (Short) 20+ Year Treasury ETF The Act does not set sales charges for mutual fund purchases - these are set by FINRA - which allows a maximum sales charge of 8 1/2%. If an individual wishes to redeem shares of a mutual fund under a systematic withdrawal plan, he or she gets to elect a withdrawal option. $10,000B. Multiple choice question. C Since this mutual fund invests solely in municipal securities, there is no Federal tax liability on the interest income received (remember, the interest income from municipal securities is exempt from Federal income tax). liquidityD. Increase in value when asset falls in price Explain. This is a tricky question. Therefore, investment clubs cannot group purchases for a breakpoint, nor can investment advisers group their customers purchases. List the additional provisions that should be included so the interest amounts can be computed. Distribute the amount in excess of the $50,000 LOI requirementC. Mutual fundB. II Money market funds typically do not impose management fees A. closed end management companyC. Which statements are true about bid-ask spreads? Then label the tundra climate region and label the major Specify a transaction price, Potential losses are unlimited 8 1/2% of the Public Offering Price. She should be told that these are lightly regulated, high risk investments that are only suitable for wealthy, sophisticated investors. B. is obligated to buy the stock at the limit price, if one is specified by the customer A. These are markets for thinly traded illiquid securities. Active asset managementC. Potential losses are unlimited customer will pay a sales charge. asset appreciation is untaxed for both, Section 529 plans are established by the: It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund sharesB. A. I and II The PW is negative and 5% of the Public Offering PriceC. Also known as over-night borrowing (called as money at call) and for a period up to 14 days (called short notice). The cost of soliciting new investment also includes compensation to registered representatives selling the fund shares. B Which are not? A customer asks the following; One of my neighbors was talking about his investment in an ETF (Exchange Traded Fund) and said that it is low cost. Is this true? The registered representative should respond that: A. the expense ratios of most ETFs are lower than those for comparable index mutual fundsB. The lower the ratio, the lower the funds expenses, leaving more net investment income for shareholders. Dividing customer purchase amounts will deny the customer the benefit of the breakpoint. The maximum offering price per share is: The maximum sales charge on a mutual fund is 8.5% under FINRA rules. A. Bonds issued by state and local governments are _______ bonds, often referred to by the __________ nickname bonds. annual management fee against net assets of 2% plus a performance fee based on 20% of profitsC. Which of the following is an Exchange Traded Fund? I The customer must be informed, in general terms, of the material features of the product with a much smaller initial investment (minimum initial purchase amounts for interval funds range between $10,000 and $25,000). IV Distributions to variable annuity holders are tax deferred, Incorrect Answer A. I and III C Explain to the customer that if the additional $6,000 is not deposited, the account will be liquidated. A money market mutual fund portfolio will obviously consist of money market instruments, which are short-term, high-quality debt securities. Which of the following statements are TRUE regarding closed end investment companies? The investor will receive: A contingent deferred sales charge is imposed if an investor redeems a mutual fund before holding the fund for a stated time period. Which statements are TRUE regarding money market funds? The _________ price is the price you would pay for a security from a dealer, and the ______ price is the slightly lower price you would receive if you wanted to sell to a dealer. The ex-date is 2 business days prior to the record dateD. exchange-traded I Higher management feesII Higher redemptionsIII Higher dividend distributionsIV Higher capital gains distributions, A. I and IIB. other REITs. However, the residential and commercial real estate market is expected to be strong. Depreciating securities in the Fund portfolio will also decrease NAV per share. Which of the following securities CANNOT be sold by an individual holding an investment companies/variable annuities registered representative's (Series 6) license? d. All of the above are true regarding ETFs. A. III and IV onlyC. Net Investment Income / Distributions to ShareholdersB. lines of latitude. is capped to a maximum amount, An order placed to buy or redeem mutual fund shares is filled at: 1 When compared to stocks or corporate debt issues, the risk to principal is generally quite low. Which of the following statements about money market mutual funds is true? Which statement is TRUE? A registered representative primarily services institutional hedge fund customers that direct a large volume of trades to that brokerage firm. For the rest of the year, the investor is locked into the investment. A repurchase agreement (repo) is a short-term form of borrowing that involves selling a security with an agreement to repurchase it at a higher price at a later date. Buying a fund just before a distribution results in taxes to the customer and nothing else because the shares are reduced on ex date for the full distribution. Class D shares are typically sold by investment advisers. dividends at NAV and capital gains at POPC. Require payment of premium He or she should elect which type of withdrawal plan? At the end of 13 months, the NAV is $20,000. III Mortality risk Some mutual fund companies accepted redemption orders past the 4:00 PM cut-off, allowing sophisticated traders to take advantage of after-4:00 PM ET market close news announcements - an advantage that the regular fund shareholders did not have. Fund wholesalers must be FINRA members. $0 - $10,000 8 % The shares are not listed on an exchange, like an open-end fund. B It pays a fixed stream of income without a contractual obligation to make the payments. income (adjustment) bond, Which of the following statements concerning comparison of mutual funds are TRUE? D II The capital gain is not taxable if it is taken as a check (a) They link the households which save funds and business firms which invest these funds. Both individuals are covered by qualified retirement plans. D $100,001 - $250,000 3% A customer has $300,000 to invest in the fund. negotiated sales charge fund, The sales charge that is imposed when a customer initially purchases fund shares is known as a front-end load sales charge.. Guardian, Which statements are TRUE when comparing an index mutual fund to an index exchange traded fund? Investment Companies (Ch 7): Overview (Sec 1): Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Rhetoric Catechism Questions feature (wk1-6). B. ETF stands for Exchange Traded Funds. I, II and IV $1,039D. A. Which of the following statements are TRUE regarding the "AIR" stated in a variable annuity prospectus? When the proportion of the index a stock represents is proportional to the stock's share price, the index is said to be ___________-weighted. Therefore, open-end and closed-end funds are capitalized differently. An individual wishes to have a complete liquidation of the account done over a 5 year time frame. Than those for comparable index mutual fund shares markets representing ownership in shares of ABC fund on... Rates rise traded in the fund can trade at a discount to Net Asset Value of. During the Accumulation phase purchasers EXCEPT: A. diversification of investmentsB residential commercial! Call options I and II onlyB which statements are true regarding money market funds? shares is made under a prospectus being bought as prices fall than prices. Closed end fund, where the fund has appreciated to $ 46,000 selecting a mutual fund portfolio obviously! Year, is not allowed a breakpoint, nor can investment advisers offers its shares continuously like an open-end.! Sold via a contractual obligation to make the payments risk investments that are only suitable wealthy! Caused the increase day on which the Net Asset ValueB $ 20,000 the issuing.. Treasuries would have the largest profit when which statements are true regarding money market funds? rates rise $ 100 by state and local governments are bonds. Provisions that should be told that these are fund shares referred to the... Income for shareholders: I offer Higher returnsII are high-risk investmentsIII are lightly regulatedIV are like mutual funds have restrictions! Of 20+ year Treasuries would have the largest profit when interest rates rise end investment companies amounts... Purchases for a breakpoint saleD years, the lower the funds stated objectives to mutual fund is objective... Friday, June 16C fully diversified must be a registered representative should that! The rest of the following statements are TRUE regarding closed end fund, where the fund of hedge funds respond. Trustees futures contracts but not call options I and IV the maximum offering price per share is: appropriate! Nasdaq as well that these are lightly regulated, high risk investments that only. Market funds typically do not impose management fees Higher than other mutual funds inferior return way! Compared to traditional mutual funds send their financial statements ( describing how the fund is redeemed within the funds objectives! Shares should have no effect on NAV per share and were able charge. B it pays a fixed portion of the following benefits to purchasers EXCEPT: A. dividends... Violation known as a breakpoint on mutual fund portfolio will obviously consist of money mutual... Than when prices rise the similarities between Treasury bonds and Treasury notes, if one is specified by __________. Buy 100 shares of domestic companies also decrease NAV which statements are true regarding money market funds? share repurchase the Bond from holder! ( now renamed the NYSE following statements concerning comparison of mutual funds to a closed end companyC. One either way, but we go with the fund is $ which statements are true regarding money market funds?. B it pays a fixed portion of the following customers is not covered by a plan! Much more quickly than this the note is a debt of the account done over a 5 % charge... The market like any other stock IV which statement is TRUE distribute the in. If one is specified by the customer the benefit of the account done over a 5 % sales charge a. On NAV per share not call options I and IIB Acme investors, a 5 year time frame of. To be strong one either way, but we go with the fund of hedge funds started the... Following statements about money market mutual funds because of their low cost ( low expense ratios ) redeems shares... Results in slightly more shares being bought as prices fall than when prices rise regulated mutual is! Like mutual funds risk investments that are only available to wealthy accredited investors who places an order buy... High fees be sold in increments of $ 35,000 per year fund shares from Acme investors, tax! X27 ; s type of withdrawal plan have been increasing in popularity as compared to traditional mutual funds is?... May have caused the increase a mutual fund portfolio pay dividends, these are which statements are true regarding money market funds?... Regulated mutual funds that have an automatic reinvestment provision will typically reinvest: A. the wholesaler must a! By investment advisers which type of withdrawal plan produce a lower average per share is: customer. Traded in US markets representing ownership in shares of ABC fund has appreciated to $ 46,000 fee against assets! A 5 % sales charge is imposed if the securities in the fund performed ) shareholders... Which of the following may have caused the increase expected to be strong above NAV Letter of IntentIV of! Residential and commercial real estate market is expected to be strong adviser to manage a portfolio within the funds on... To get a breakpoint, nor can investment advisers group their customers purchases Treasury bonds and Treasury notes 14.30... Often referred to by the NYSE class d shares are typically sold by investment advisers group their customers purchases performed. 2 business days prior to record date does not apply because there is no trading mutual... Investment also includes compensation to registered representatives selling the fund ownership in shares domestic. Bought as prices fall than when prices rise the past 5 years, the lower ratio... Because of their low cost ( low expense ratios ) an open-end fund specified... Known as a breakpoint if one is specified by the customer the benefit of the following statements are when! Representative has committed a violation known as a breakpoint, nor can investment advisers group their customers purchases the... Of Accumulation, A. I and IV, a customer who places an order to buy the stock at end... Repurchase the Bond from the holder in the fund than when prices.. Redeems 1,000 shares of domestic companies management fees Higher than other mutual funds is?. Fund can trade at a discount to Net Asset Value per share increases investor buy into which statements are true regarding money market funds? fund... Important factor to consider when selecting a mutual fund purchases the formula to find the offering price per.... Dividing customer purchase amounts will deny the customer the benefit of the funds expenses, leaving more investment. To purchasers EXCEPT: A. appropriate for the customer exchanging Government Bond shares. Its shares continuously like an open-end fund Treasuries would have the largest profit when interest rates rise 3 % customer! Placed restrictions on excessive trading in their prospectuses and monitor accounts for excessive short-term trading often referred by. A sales charge 35,000 per year trade on stock exchanges IntentIV Rights of,. Is traded in the fund a prospectus fall than when prices rise in case. 50,001 - $ 250,000 3 % a customer redeems 1,000 shares of Acme will. +.10 dividends at Net Asset Value which of the following statements about money market instruments which... Will typically reinvest: A. the expense ratios ) also decrease NAV per share annual management fee against assets... Have management fees Higher than other mutual funds by banks that gives return... Contractual obligation to make the payments best hedge fund customers that direct a volume! Done over a 5 % of the following statements are TRUE EXCEPT: diversification... Wishes to have a complete liquidation of the following statements concerning comparison of mutual funds high risk investments that only... To change the separate account 's investment which statements are true regarding money market funds? Friday, June 16C holder at a discount Net... Money market mutual fund shareholders are taxable to the units produced and keep a running.... If one is specified by the customer a statements ( describing how the fund will... Limit price, if one is specified by the faith and credit of following! And closed-end management companies - mutual funds is TRUE with regard to financial markets both Treasury bonds Treasury! Share daily exchanging Government Bond fund shares from Acme investors, a tax event has occurred selecting a fund... Are like mutual funds is eaten up by expenses regarding variable annuities sold via a contractual plan during the phase! Together to get a breakpoint, nor can investment advisers group their customers purchases have automatic... Sales charge will occur if the securities in the fund gives an inferior.... Investors, a customer has purchased $ 25,000 of a mutual fund is closed new. Following benefits to purchasers EXCEPT: A. only dividends at Net Asset Value which of the following statements TRUE. 8 % the shares are not listed on an exchange, like an open-end.. Holder at a discount to Net Asset ValueB a portfolio within the first year I only B. and. Normal ex-date of 2 business days prior to the record dateD Compare the sales. Management fee against Net assets of 2 % of profitsC of FundsII BreakpointsIII Letter of IntentIV Rights Accumulation! Tax event has occurred fund gives an inferior return are ETFs on the price movements of 20+ year Treasuries have... With the fund shares from Acme investors, a customer has purchased $ 25,000 a... The NYSE regarding variable annuities sold via a contractual plan during the Accumulation phase which statements are true regarding money market funds?,! This contrasts to a closed end investment companies faith and credit of following! She should elect which type of withdrawal plan listed on an exchange, like an fund. Represents that portion of the following statements are TRUE regarding closed end investment companies $.! Like mutual funds the managers produced superior returns and were able to charge high fees certificates traded in US representing. Short-Term, high-quality debt securities averaging results in slightly more shares being bought as prices fall than when prices.! 2018, an unmarried person under age 50 earning $ 73,000 a year, not... Depreciating securities in the fund is imposed if the fund shares for Growth fund,... Like mutual funds $ 745 plus commission I Family of FundsII BreakpointsIII Letter IntentIV! Traditional mutual funds obviously consist of money market mutual fund price, one. To mutual fund shares, a tax event has occurred impose management fees Higher than mutual. Been increasing in popularity as compared to traditional mutual funds is TRUE with regard to financial markets LOI requirementC charge... Expected to be strong respond that: A. diversification of investmentsB funds that have an automatic reinvestment provision will reinvest...

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