Series 65: Exercise

Exercise

Choose the Best Answer

1. 1. Members of the board of directors:
2. I. Can include employees of the custodian firm
3. II. Must include at least 40% non-interested persons
4. III. Assist with day-to-day portfolio management
5. IV. Vote on a change of investment adviser
6. A. II and IV
7. B. I and III
8. C. II and III
9. D. I and II
10. 2. Which of the following statements about the sale of mutual fund shares is inaccurate?
11. A. The underwriter prepares sales literature.
12. B. The mutual fund company sells shares to the transfer agent at the NAV.
13. C. The transfer agent receives the investor’s payment and issues new shares to buyers.
14. D. The custodian safeguards the proceeds of the sale.

Answers

1. 1. D. The board of directors can include persons ot