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SIE Exam Lesson 20 Mutual Funds pt 3 Quiz
SIE Exam Lesson 20 Mutual Funds pt 3 Quiz
This is a SIE Exam Lesson 20 Mutual Funds pt 3 Quiz, See how you do if you need help listen to the lesson over.
Questions covered include
1. Which of the following is true about hedge funds?
(Select all that apply.)
A. They are not allowed to cut off withdrawals by their investors.
B. They are open to any kind of investor.
C. They charge a management fee.
D. They have a cap on the amount that is available to be withdrawn at any given time.
2. What is the minimum capital for a hedge fund?
A. $100,000
B. $200,000
C. $500,000
D. $1,000,000
3. Which of the following is qualified as an accredited investor according to the Securities Act of 1933?
(Select all that apply.)
A. a bank
B. a charitable organization with a total asset of $5 million
C. a trust with a total asset of $10 million
D. an employee benefit plan that has a total asset of $3 million
4. A business is qualified to be an accredited investor if all its equity owners are accredited investors.
A. True
B. False
5. A natural person can be an accredited investor if that person ___.
(Select all that apply.)
A. has an income exceeding $200,000 in each of the two most recent years and a reasonable expectation of the same income level in the current year
B. has individual net worth that exceeds $1 million including the value of the primary residence of such person
C. has a joint income with the spouse exceeding $200,000 in each of the two most recent years and a reasonable expectation of the same income in the current year
D. has a joint net worth with the person’s spouse that exceeds $1 million excluding the value of the primary residence of such person
6. The performance of a hedge fund is always better than the market.
A. True
B. False
7. Which of the following strategies does a hedge fund employ?
(Select all that apply.)
A. global macro hedge fund strategy
B. relative value arbitrage
C. high-frequency trading
D. currency strategies
8. A mutual fund’s annual and semiannual report has an income statement similar to a regular corporate income statement.
A. True
B. False
9. Which of the following can be found in a mutual fund’s income statement?
(Select all that apply.)
A. dividends
B. capital gains
C. expenses
D. net income
10. Which of the following is true about expense ratio?
(Select all that apply.)
A. It applies to closed-end funds but not to open-end funds.
B. It gives an overall look at how much it costs to pay the management to buy the stocks instead of buying it yourself without paying any management fee.
C. It is the total net assets divided by the total expenses.
D. It shows the efficiency of the fund.
11. If you’re buying a fund at a very big discount but has a very high expense ratio, the discount you’re buying those stocks may disappear.
A. True
B. False
12. An investment company should distribute at least ___ of its income in order to be regulated under the Investment Company Act of 1940.
A. 80%
B. 85%
C. 90%
D. 95%
13. If an investment company is not regulated under the Investment Company Act of 1940, ___.
A. it becomes taxed as a regular corporation
B. it has to pay an additional tax equivalent to 2% of the total capital gains
C. it will require double management fees
D. its net pass is not taxed
14. Investment companies can pass through capital gains ___.
A. monthly
B. quarterly
C. semiannually
D. at the end of the year
15. An investor buying a mutual fund at the end of the year will not be paying taxes if he has not made any money in the fund.
A. True
B. False
16. It is a type of mutual fund having a portfolio that is constructed to mimic the market index.
A. closed-end fund
B. exchange traded fund
C. index fund
D. open-end fund
17. These funds are traded as regular stocks on the stock exchange, but move throughout the day.
A. closed-end fund
B. exchange traded fund
C. index fund
D. open-end fund
18. As an investor in a fund or in a management company, you have the right to ___.
(Select all that apply.)
A. receive annual and semiannual reports
B. vote annually on the investment adviser contract
C. vote every year on the board of directors
D. vote on any changes in the investment objectives
19. In an investment company, ___ of the directors must be non-interested.
A. 75%
B. 80%
C. 85%
D. 90%
20. In a dollar cost averaging, when the price of the stock goes up, ___.
A. you’re buying fewer shares on any given month
B. you’re buying more shares on any given month
C. you’re buying the same number of shares on any given month
D. you cannot buy any shares until the price of the stock returns to market price
We hope you did well on this SIE Exam Lesson 20 Mutual Funds pt 3 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