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FINRA Series 7

Category - Series 7

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A mutual fund custodian is paid according to which of the following specifications when receiving deposits from a shareholder’s reinvestment plan?

a commission for each share purchased
a percentage of the sales charge
a processing fee
a percentage of the fund’s net asset value

Explanation

Answer: C - a processing fee. Many custodian banks charge the custodian fee to the mutual fund rather than the individual shareholder.

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FINRA Series 7

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FINRA Series 7

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