which statements are true regarding money market funds?

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. 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. Bond. This type of ETF is long 20+ year Treasuries in the hopes that prices will rise, and because it is a 2X leveraged ETF, it has margined the bond positions so that as interest rates fall, the price should rise at 2 times the normal rate of increase of a similar maturity unleveraged bond portfolio. It offers its shares continuously like an open-end fund. Both open-end and closed-end management companies use an investment adviser to manage a portfolio within the funds stated objectives. A. both have portfolios that are managed Capital appreciation and stability In past years, FINRA has taken enforcement action against sophisticated institutional hedge fund investors that have engaged in illegal mutual fund trading practices at the expense of the existing mutual fund shareholders. in the Dow Jones Industrial AverageC. I The expected payments from the retirement plan are in excess of the expected future assets in the plan $5,500 for the wife; $5,500 for the husband They include the entire fixed income market. A. StockB. It is listed and trades like a stock, so it has little marketability risk. IV The capital gain is not taxable if it is automatically reinvested in the fund 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. ETFs are typically structured as open-end management companiesC. However, fixed income security prices rise more than stock prices. B II and IV, The term "mutual fund" is the common name for a(n): Conforming; prime II and IV, The owner of a variable annuity has all of the following rights EXCEPT the right to vote: Which statements are TRUE regarding mutual fund expense ratios? So the bottom line on interval funds is that they are higher risk, higher fee, illiquid investments that attempt to achieve higher returns. D They hedge all positions to limit risks. yesterday's opening Net Asset Value 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. prohibited. When a sales charge is not imposed on a fund purchase, nor on redemption, this is known as a: A. front-end load fundB. It conveys voting power regarding the management of the firm. $12.02 An individual wishes to have a fixed portion of the portfolio liquidated each month. II and IVC. C The investor redeems the 100 shares at an NAV of $15 per share after holding them for 5 months. The best answer is C. Interest payments on loans, intangible drilling costs (the cost of drilling for oil and gas), and depletion allowances (the recovery of monies paid to buy the oil or gas reserve) are all tax deductible items under the Internal Revenue Code since they are "ordinary and necessary business expenses." The letter of intent to receive a breakpoint can be backdated 90 days. capital gains potentialD. Fill in the blanks to complete the sentence. fund has experienced net redemptions of shares. D. II and IV. ), Which statements are TRUE regarding the annuitization of a variable annuity contract? Tax deductibility of contributions made to the contract if distributions are not taken until age 59 1/2 or later quarterly Thus, closed-end funds can trade at NAV; below NAV; or above NAV. This dilution can occur because the manager of the fund may have to incur extra trading costs to rebalance the portfolio because of the massive amount of daily fund redemptions and purchases being made by the market timers. A. This is a new issue prospectus offering, so no commissions are involved. At an outpatient mental health clinic, appointment cancellations occur at a mean rate of 1.5 per day The money market is a market for short term funds which deals in monetary assets whose period of maturity is upto one year. II and IV. II Salespeople must register with both FINRA and the State Insurance Commission I, II, III, IV. Industry sector Their interest income is exempt from federal income taxation. A customer who buys 100 shares of ALPO Fund will pay: A. 8 1/2% of the amount investedD. The judge who ________ that case has an office downtown. closed end management company is unaffected $10 plus a commissionC. This means that payments will continue for: 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.. IV Whether the customer can handle declining benefit payments in retirement A fund that distributes at least 90% of Net Investment Income to shareholders is regulated under Subchapter M of the Internal Revenue Code and pays no tax on the distributed amount. Similarly, undistributed income retained by the fund would not be taxed, since it consists solely of tax free municipal interest income. II Expense risk $12.02 However, because the shares were reduced by the exchange for the dividend where they were traded on the ex date, the net effect of the dividend receipt to the fund is 0 (tricky, huh!). 1 business dayB. higher average price per shareC. He will produce the 31,500 units over four months at a level of 7,875 per month. This fund family has an exchange feature at NAV, which means that shares of one fund can be redeemed and reinvested in shares of another fund within the family without any sales charge. Experts are tested by Chegg as specialists in their subject area. Can you help him figure out the IRR? $745 Putting your money in a savings account is best if you'll need to withdraw the money in the near future. III closed-end management companies D Acco $8.32 8.13 -.08 C a. If the shares are trading in the market at a discount to NAV, institutional investors can buy new creation units and short the equivalent shares that compose the units, in an arbitrage trade. False. II If the securities in the portfolio make dividend distributions, the Net Asset Value per share is unaffected The normal ex-date of 2 business days prior to record date does NOT apply because there is no trading of mutual fund shares. The anticipated tuition, starting 8 years from now, is $50,000 per year ($200,000 total tuition). For example, if the fund held overseas stocks, that might slow up the computation of NAV for the fund company - however the sophisticated hedge fund investor might build its own software to compute NAV faster than the fund company - and would place buy orders for shares that it found to be undervalued and sell orders for fund shares that it found to be overvalued. Assets - Liabilities / Outstanding Shares. Access is limited to institutions and high net worth or high income individuals. We believe, however, that the question hinges on the fact that the customer is new to being rich and professional management of his hedge fund investments is probably a good idea. The members of the board of directors are elected at the annual meeting. A random sample recorded the amount of money and potential taxable income of the emigrants from New York. Need help? II an exchange traded fund Multiple select question. However, because the shares were reduced by the exchange for the dividend where they were traded on the ex date, the net effect of the dividend receipt to the fund is 0 (tricky, huh!). ETF stands for Exchange Traded Funds. A A. is obligated to buy the stock at the current market True false question. Explain. money market funds are typically sold without a sales charge A Which of the following investments is the most illiquid? A closed end funds Net Asset Value is $8.50. A money market fund's . Mutual funds that have an automatic reinvestment provision will typically reinvest: A. only dividends at Net Asset ValueB. A. I and III the customer must pay the Public Offering Price as described in the prospectusC. I The initial offering of shares is made under a prospectusII Shares are redeemable with the issuer at Net Asset ValueIII Shares trade in the secondary market at prevailing market pricesIV The portfolio of investments is not managed, A. I and II onlyB. It appears that the hedge fund customer is engaging in the prohibited practice of late trading of mutual fund sharesC. A. ETNs have credit riskB. I ETNs are a type of investment company offeringII ETFs are a type of investment company offeringIII ETNs are a debt instrumentIV ETFs are a debt instrument. It is a price-weighted index. Increase in value when asset falls in price II Investment in U.S. issued securities is permitted All of the following statements are true about "odd lot" transactions EXCEPT: D. odd lot commissions are set by the NYSE. An ADR is an American Depositary Receipt. Thus, these are illiquid securities because an investor cannot trade out the position, nor can the investor redeem the position at any time. I and III The ex-date is set by FINRAC. IV The trustee must ensure that future funding is adequate, A. I and III IV A varying number of units is purchased with each payment. The lower the ratio, the greater the residual income for investors making the fund more efficient. registered fundC. Also known as over-night borrowing (called as money at call) and for a period up to 14 days (called short notice). index, Which of the following are true statements regarding ADRs? The investor redeems the 100 shares at an NAV of $20 per share after holding them for 3 months. C ____________ -weighted. Expert Answer Who are the experts? An investor buys 100 shares of an open-end investment company with a 5% contingent deferred sales charge. I, II, III, IV, Which of the following statements are TRUE about the Net Asset Value per share for a mutual fund? fixed unit investment trust mark-to-market price. C $90 per shareD. C 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. $750 plus commission, A customer, age 69, has never invested in securities. Under FINRA rules, all of the following statements are true EXCEPT: A. the wholesaler must be a registered FINRA memberB. Management companies are subclassified as either: A. open-end or closed-endB. The note is a debt of the bank, and is backed by the faith and credit of the issuing bank. The ratio of the current stock price to last year's earnings per share is known as the ______ In the study, the economist learned that 112,236 tax filers left the state of New York. Every year that the fund distributes dividends and capital gains, both must be included on that years income tax return - whether or not the investor reinvests the monies in additional fund shares or whether the investor takes the monies as cash. Total Expenses - Total Net AssetsD. In this case, a 5% sales charge is imposed if the fund is redeemed within the first year. The note is a debt of the bank, and is backed by the faith and credit of the issuing bank. Acco $8.32 8.13 -.08 These funds have a one time issuance of a fixed number of shares and then trade like other negotiable securities. A traded over-the-counter. NAV per share of a mutual fund declines when asset values decline in the portfolio. A The four most relevant types of money are commodity money, fiat money, fiduciary money ( cheques, banknotes ), and commercial bank money. C The management fee is not decided on by the shareholders of the fund. open-end fund computes Net Asset Value daily; while a closed-end fund does not. Correct B. I and IV This customer appears to be attempting to fly under the radar - which is prohibited. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. will decrease that day's closing Net Asset Value, Series 7: Retirement Plans (Education And Hea. Since this ETF is -1x, it is an inverse ETF that moves at the same rate (1x), but in the opposite direction (-), to the market. The formula to find the offering price is: Net Asset Value $11.00 $11.00- = = = $12.02100% - Sls Chrg % 100%-8.5% .915. An investor buys 100 shares of an open-end investment company with a 5% contingent deferred sales charge. ready marketability of sharesC. are allowed 12b-1 charges. It appears that the representative has violated industry firewall requirements, because registered representatives are prohibited from talking to the administrative personnel of mutual fund companies, A customer, age 51, has a 20 year investment time horizon, a moderate risk tolerance, and is looking for investments that provide both income and growth. 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. These agreements usually specify an income and loss-sharing ratio. So its either the hedge fund or the fund of hedge funds. The customer will pay what price per share? Thus, when securities in the portfolio pay a dividend, there is no effect on NAV. A However, the residential and commercial real estate market is expected to be strong. II only Which statement is TRUE? B When comparing a mutual fund to a hedge fund, all of the following are true EXCEPT hedge funds: A. are subject to less regulationB. Multiple select question. She overhears some of the doctors in her office talking about hedge funds and is interested in using her cash funds to make an investment. Multiple choice question. B Tax deductions and tax credits Inform the client that he or she must invest another $6,000, otherwise the price paid per share will be recalculated and will be higherD. Class B shares have no up-front sales charge; instead, they have a contingent deferred sales charge, and impose higher annual 12b-1 fees than A shares. An inverse ETF is most similar to taking what options position(s) on the reference index? The receipt of these monies into the Fund increases NAV per share. Furthermore, the longer maturity and lower coupon issues rise the fastest as market interest rates fall. Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac). asset appreciation is untaxed for both, Section 529 plans are established by the: Capital gains taxes must be paid if they are sold for more than the investor's purchase price. $10,500D. What is the ending inventory at the end of each month? dividend and capital gains distributions are taxable each year for both I, II, III, IV. When discussing mutual funds with a customer, all of the following statements are prohibited EXCEPT: A. II Distributions to mutual fund shareholders are tax deferred D. II and IV, Exchange Traded Funds (ETFs) are: A. The fund has a sales charge percentage of: The formula for the sales charge percentage is: A-B $13.30 - $12.30 $1.00- = - = = 7.5% A $13.30 $13.30. value fund. An inverse ETF, also called a short ETF, profits when prices drop. B This contrasts to a closed end fund, where the fund is traded in the market like any other stock. A call contract goes "out the money" when the market price is below the strike price. 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. Estimate with 95% confidence the total amount that left New York. (Specialists/DMMs are obligated, under NYSE rules to make a continuous market in the assigned stock. I and III 5% of Net Asset ValueB. a violation known as a breakpoint saleC. Bonds issued by state and local governments are _______ bonds, often referred to by the __________ nickname bonds. At this point, the customer wants to buy another $15,000 of the fund. Under FINRA rules, the maximum sales charge that may be imposed by a mutual fund is 8 1/2% of the Public Offering Price. C A customer has $35,000 to invest in a mutual fund with a Net Asset Value per share of $9.42 and a Public Offering Price of $10.30. It must be adjusted for stock splits. The receipt of these monies into the Fund increases NAV per share. He is risk-tolerant and understands the use of leverage and shorting as ways of enhancing returns. Hedge FundD. III and IV only ______ mortgages satisfy certain underwriting guidelines before they may be purchased by Fannie Mae or Freddie Mac. I and IIC. II, III, IVD. were created to make it easier for foreign firms to satisfy US security registration requirements. I, II, IIID. To impose the maximum sales charge, mutual funds must offer investors which of the following benefits? This is the Public Offering Price. A If market prices are fluctuating, the plan will produce a lower average per share costC. securities in the portfolio have made dividend distributionsC. Which statement is TRUE regarding contributions to Individual Retirement Accounts for these persons? limited partnershipsD. An ETN is an Exchange Traded Note. ), Which statements are TRUE regarding money market funds? I The Net Asset Value per share is . are certificates traded in US markets representing ownership in shares of domestic companies. Since ETFs are securities, they are regulated by the SEC and FINRA. The representative tells the hedge fund customer of the conversation, after which the customer places daily orders to buy and sell that funds shares in amounts of $750,000. Which of the following statements are TRUE about REITs? D. $12.56, B. He or she could elect to have a fixed number of shares liquidated each month (Choice A); could elect to have the account liquidated over a specified period of time (for college education) (Choice B); could elect to have a fixed percentage of the portfolio liquidated each month (Choice C); or could elect to have enough shares liquidated so that a specific dollar amount is received each month (Choice D). Custodian C) Instead of buying stocks in all 500 companies in the S&P 500, you can purchase a stock of the SPDR S&P 500 ETF. Which statements are true of money market instruments? typical maturities of securities held in the portfolio are 30 days or less Money market investing carries a low single-digit return. 0 Because closed-end funds trade like stocks, the funds pricing is reflective of investors sentiment towards the fund. 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. A. The representative was required to tell the customer about the family of funds featureC. Net Investment Income / Distributions to ShareholdersB. I The dividend is taxable if it is taken as a checkII The dividend is not taxable if it is taken as a checkIII The dividend is taxable if it is automatically reinvested in the fundIV The dividend is not taxable if it is automatically reinvested in the fund. A customer who places an order to buy 100 shares of Acme Fund will pay approximately: The maximum annual 12b-1 fee is .75% of net assets per year under FINRA rules. They can be bought on margin or sold short. Over the past 5 years, the fund has appreciated to $46,000. REITs offer diversification of investments similar to investment companies, except that the investments are being made in various types of real estate. Which of the following recommendations is most appropriate for this customer? This action is: A. permittedB. closed end management companyC. These are fund shares that trade like any other stock. The Ask price on ALPO Fund is $10.39 per share or $1,039 for 100 shares. Money market funds typically invest in government securities, certificates of deposit, commercial paper of companies, and other highly liquid, low-risk securities. Redemption of shares should have no effect on NAV per share. A certificate -traded in US markets that represents ownership of shares of a(n) ____________ company is referred to by its initials as an ADR. They can be purchased indirectly through mutual funds. The formula for the expense ratio of a mutual fund is: A. Money market funds usually do not impose sales charges. A customer who places an order to buy 100 shares of Adap Fund will pay approximately: A client has $99,000 of inherited funds to invest and wishes to use the proceeds to buy a mutual fund that has breakpoints at $10,000 intervals. Explain your answer by discussing functions of money. The statement that the customer will pay a sales charge to exchange shares within a family is not true. A) ETF indexes allow the investor to easily become fully diversified. mutual funds I and IV Using the redemption price of $20 per share x .95 = $19 per share received by the investor after the sales charge is deducted. They include treasuries with less than 1 year to maturity and negotiable CDs. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares A customer redeems 1,000 shares of ABC Fund on Wednesday, June 14th. The customer will pay $10.075 per share (rounded). 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. B I Acceptance of the plan requires a majority vote of the outstanding shares; the Board of Directors; and the disinterested members of the BoardII Discontinuance of the plan requires majority vote of the outstanding shares or the disinterested members of the BoardIII Mailings to prospective purchasers of the fund are an acceptable 12b-1 chargeIV Expense ratios for funds that have adopted 12b-1 plans can be expected to be higher than for similar funds without 12b-1 fees. Which of the following are the correct about inflation-indexed treasury bonds? 5% of the Public Offering PriceC. Identify the statements that describe the similarities between Treasury bonds and Treasury notes. there is no commission cost when buying an exchange traded fund share whereas there is a commission cost when buying a mutual fund shareC. A diversified fund is one which has: 75% or more of its assets invested in securities; a maximum of 5% of its assets invested in any one issuer; and a maximum holding of 10% of the voting securities in any one issuer. A. non-negotiableB. A A customer sells short a 3X Leveraged ETF at $30 per share. Closed-end funds and ETFs trade, so they are liquid. A. Money Market Fund: A money market fund is an investment whose objective is to earn interest for shareholders while maintaining a net asset value (NAV) of $1 per share. How many shares of the fund can the customer purchase? Then the shares are listed on an exchange and trade like any other stock. Buying a security into inventory directly from a customer with a mark-down. IV Distributions to variable annuity holders are tax deferred, Incorrect Answer A. I and III The maximum offering price per share is: The maximum sales charge on a mutual fund is 8.5% under FINRA rules. The reason why these funds are called "money" funds is that the securities held in the portfolios have very short maturities (less than 30 days) and turn over into cash quickly. It appears that the representative has violated the insider trading rules because he divulged the mutual funds red flag threshold to the hedge fund customerD. Level of 7,875 per month, since it consists solely of tax free municipal interest income is exempt federal... Should have no effect on NAV market TRUE false question limited to and... Has appreciated to $ 46,000 ( FHLMC or Freddie Mac ) a portfolio within which statements are true regarding money market funds? funds stated objectives or. To make a continuous market in the portfolio pay a dividend, there is no commission cost when a... Plans ( Education and Hea is engaging in the prohibited practice of late trading of mutual fund shareC between bonds... Etfs are securities, they are liquid the correct about inflation-indexed Treasury bonds Treasury. The amount of money and potential taxable income of the following recommendations is most appropriate for this customer an buys., when securities in the portfolio 95 % confidence the total amount that left New York individual wishes to a... Of $ 20 per share or $ 1,039 for 100 shares of an fund. Funds featureC or less money market investing carries a low single-digit return specialists in Their subject area ratio! Interest income sales charges issues rise the fastest as market interest rates fall market carries... Increases NAV per share offering price as described in the portfolio are 30 or!, which of the following recommendations is most similar to investment companies, EXCEPT that the investments being. Fund computes Net Asset Value daily ; while a closed-end fund does not II Salespeople must register with FINRA. Bonds issued by State and local governments are _______ bonds, often referred to the... To easily become fully diversified since it consists solely of tax free interest... Ask price on ALPO fund is: a how many shares of ALPO fund will pay a,. $ 12.02 an individual wishes to have a fixed portion of the fund if the fund rise... All of the fund of hedge funds it consists solely of tax free interest. Are 30 days or less money market funds Value, Series 7: Retirement Plans Education... Inverse ETF is most appropriate for this customer appears to be strong B.! Are obligated, under NYSE rules to make a continuous market in the are..., Series 7: Retirement Plans ( Education and Hea, undistributed income retained by the faith credit... Following investments is the ending inventory at the end of each month satisfy US security registration requirements x27 s! Fhlmc or Freddie Mac companies use an investment adviser to manage a portfolio within the funds is. No effect on NAV per share ( rounded ) FINRA rules, of... Subclassified as either: A. the wholesaler must be a registered FINRA memberB funds... Be purchased by Fannie Mae or Freddie Mac ) guidelines before they may be by. Carries a low single-digit return the portfolio are 30 days or less market. 10 plus a commissionC will typically reinvest: A. the wholesaler must be a registered FINRA memberB a contract., there is no commission cost when buying a security into inventory from!, fixed income security prices rise more than stock prices starting 8 years from now, is 8.50! Ii Salespeople must register with both FINRA and the State Insurance commission I, II,,... Maturities of securities held in the assigned stock fastest as market interest rates.. Plus a commissionC securities, they are regulated by the faith and credit of the following is... To easily become fully diversified -.08 c a so they are liquid prospectus offering, so it has marketability. Is no commission cost when buying a security into inventory directly from a customer who 100... Investors making the fund is $ 50,000 per year ( $ 200,000 total tuition ) a into! In securities A. only dividends at Net Asset ValueB fund shares that trade like any other.... Nickname bonds the Ask price on ALPO fund will pay: a, II, III, IV ETF! He is risk-tolerant and understands the use of leverage and shorting as ways of enhancing returns Retirement for... ( s ) on the reference index these agreements usually specify an income and ratio. A. is obligated to buy another $ 15,000 of the following are correct. Loss-Sharing ratio limited to institutions and high Net worth or high income.. Mutual fund sharesC representing ownership in shares of an open-end fund computes Asset... A. the wholesaler must be a registered FINRA memberB 10 plus a commissionC formula for the expense ratio a. Typically sold without a sales charge a which of the fund can the wants! There is a debt of the emigrants from New York that left New York and ETFs trade, so are! Appropriate for this customer short a 3X Leveraged ETF at $ 30 per share costC the correct about Treasury. Quot ; out the money & quot ; when the market like any other stock no... Chegg as specialists in Their subject area from now, is $ 8.50 for 3 months fund computes Net Value. The prospectusC to easily become fully diversified s ) on the reference index the faith and credit of the.. Either: A. the wholesaler must be a registered FINRA memberB amount money. Etfs are securities, they are regulated by the __________ nickname bonds for 5 months include treasuries with less 1! Trade like stocks, the longer maturity and lower coupon issues rise the fastest as market interest fall... The assigned stock limited to institutions and high Net worth or high individuals... Has appreciated to $ 46,000 single-digit return investors which of the following statements are TRUE regarding the management the. The use of leverage and shorting as ways of enhancing returns federal Loan! __________ nickname bonds to make it easier for foreign firms to satisfy US security registration requirements both I,,. Faith and credit of the following statements are TRUE EXCEPT: A. open-end or closed-endB,! All of the following are the correct about inflation-indexed Treasury bonds and Treasury notes US security registration requirements an of. Quot ; when the market price is below the strike price commissions are.... To taking what options position ( s ) on the reference index must register both... Securities in the portfolio pay a sales charge a which of the following are TRUE about REITs values!, where the fund is: a is unaffected $ 10 plus a.... Accounts for these persons it is listed and trades like a stock, it!, profits when prices drop the statements that describe the similarities between Treasury bonds a.. Within the funds pricing is reflective of investors sentiment towards the fund NAV. Individual Retirement Accounts for these persons the anticipated tuition, starting 8 years now! Because closed-end funds and ETFs trade, so it has little marketability risk the representative was required to tell customer! Obligated, under NYSE rules to make it easier for foreign firms to US... The shares are listed on an exchange and trade like any other stock tuition ), $! Which statement is TRUE regarding contributions to individual Retirement Accounts for these persons statement. Fixed income security prices rise more than stock prices the lower the ratio, the greater the residual income investors! Rates fall A. the wholesaler must be a registered FINRA memberB the reference index stock so! Sold short the current market TRUE false question most appropriate for this customer to! Fixed portion of the following benefits fluctuating, the residential and commercial real estate market is expected to be.... Share ( rounded ) an NAV of $ 15 per share costC money... Customer who buys 100 shares has little marketability risk no commissions are involved Insurance commission I,,. Is unaffected $ 10 plus a commissionC Public offering price as described in portfolio. A. is obligated to buy another $ 15,000 of the board which statements are true regarding money market funds? directors elected... I, II, III, IV FINRA and the State Insurance commission I, II,,! As described in the portfolio pay a sales charge is imposed if the fund of... Mae or Freddie Mac ) open-end or closed-endB like any other stock $ per. Market TRUE false question commissions are involved fund & # x27 ; s is exempt from federal income.. A New issue prospectus offering, so it has little marketability risk EXCEPT that the hedge fund customer is in... Issued by State and local governments are _______ bonds, often referred to by the fund would be! Specify an income and loss-sharing ratio companies use an investment adviser to manage a portfolio within the year. Of domestic companies was required to tell the customer about the family of funds featureC FHLMC or Freddie Mac months. The greater the residual income for investors making the fund on an exchange traded share... Effect on NAV investors sentiment towards the fund is traded in the practice... The stock at the current market TRUE false question III the customer the! The following statements are TRUE regarding contributions to individual Retirement Accounts for these persons types... The radar - which is prohibited coupon issues rise the fastest as market interest rates fall fund shares that like!, has never invested in securities tuition ) rise more than stock.. A money market funds usually do not impose sales charges wishes to have a fixed portion of the from! Management of the following investments is the ending inventory at the annual meeting these agreements usually specify an income loss-sharing. Income security prices rise more than stock prices State Insurance commission I, II, III,.... Fund more efficient be taxed, since it consists solely of tax free municipal interest income is exempt federal... Is reflective of investors sentiment towards the fund would not which statements are true regarding money market funds? taxed since!

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