Practice Quiz

FINRA Series 7

Category - Series 7

Start a Study Session Sign up for Question of the Day
A bank or trust company that is acting as custodian for a mutual fund does which of the following?
  1. guarantees investor losses on investments
  2. provides investment advice to the fund’s managers
  3. redeem and issues fund shares
  4. physically protects the fund’s assets
Explanation
Answer: D - physically protects the fund’s assets. The custodian holds the assets of the fund. The transfer agent redeems and issues fund shares.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz