Practice Quiz

FINRA Series 7

Category - Series 7

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Which of the following statements regarding mutual funds is true?
  1. the custodian can also be the transfer agent
  2. the sponsor receives a management fee based on the fund’s total assets
  3. the terms “management company” and “investment advisor” are interchangeable
  4. the management company receives a portion of the sales load for managing the fund assets
Explanation
Answer: A - the custodian can also be the transfer agent. This has become increasingly common. None of the other choices are correct.
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