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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 The objectives of the fund is already fixed in the prospectus and can never be changed until all the funds are withdrawn.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. putting an additional fee or a management charge on sales of open-end funds
D. reducing the maximum sales commission
We hope you did well on this SIE Exam Lesson 18 Mutual Funds pt 1 Quiz
Total Course 37 hours 10 Min
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
The full course details:
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
New Series 7 Exam and SIE Exam details.
All candidates now must now pass both the SIE exam (securities industry essentials exam) as well as the New Top-Off Series 7 Exam. A Series 7 candidate must also have an industry sponsor in order to take the examination to take the SIE Exam the candidate simply needs to be 18 years old and no broker affiliation is needed..
https://www.finra.org/industry/essentials-exam
- “Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
New Series 7 Exam
The New Series 7 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the four main job functions of a general securities representative. The table below lists the allocation of exam questions for each main job function.
Major Job Functions Percentage of Test Questions Number of Test Questions
(F1) Seeks Business for the Broker-Dealer from Customers and Potential Customers 7% 9
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 9% 11
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 73% 91
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 11% 14
TOTAL 100% 125”
The five job functions of the new Series 7 General Securities Representative Exam will be:
“Seeks business for the broker-dealer through customers and potential customers”
“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”
“Opens accounts, transfers assets and maintains appropriate account records”
“Provides customers with information on investments and makes suitable recommendations”
“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”
These five functions of the new series 7 exam are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”
https://www.finra.org/industry/series7
Here is a link to the table of Contents
Here is what my customers say about my audio lessons
Testimonials
—————————
New Series 7 Exam and SIE Exam details.
FINRA has announced major changes to the Series 7 Exam effective October 1, 2018. With the introduction of the Securities Industries Essentials Exam (SIE Exam) the new series 7 has been pared down to 125 questions from its original 250 questions.
https://www.finra.org/industry/series7
However there is now a prerequisite before taking the new Series 7 Exam all candidates now must have passed the SIE exam (securities industry essentials exam). In addition thing a series 7 candidate must also have an industry sponsor in order to take the examination.
https://www.finra.org/industry/essentials-exam
“Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
Outline of SIE Exam:
https://www.finra.org/sites/default/files/SIE%20Outline-01.12.18.pdf
https://www.finra.org/industry/series7
https://www.finra.org/sites/default/files/Series_7_Content_Outline.pdf