Series 65: Exercise

Taken from our Series 65 Online Guide

Exercise

Answer the following questions

  1. 1. Which statement is true regarding NAV per share?
  2. A. NAV is the amount an investor will pay for her shares in a mutual fund.
  3. B. NAV is used to determine breakpoints.
  4. C. NAV is calculated just before the markets open on trading days.
  5. D. NAV represents the current value of a mutual fund share.
  6. 2. What classes of shares are sold at NAV with no front-end load?
  7. I. A shares
  8. II. B shares
  9. III. C shares
  10. IV. D shares
  11. A. I and IV
  12. B. II and III
  13. C. I and III
  14. D. III and IV
  15. 3. Distribution fees may also be known as:
  16. I. Fees paid for marketing and selling fund shares, such as advertising, printing, and mailing
  17. II. Front-end fees
  18. III. 12b-1 fees
  19. IV. Management fees
  20. A. II and IV
  21. B. I and III
  22. C. I and IV
  23. D. II and III
  24. 4. John purchases a growth fund with a contingent deferred sales charge. Three years later, he has an unfortunate accident and is unable to work. He now needs income to supplement his disability. What do you advise?
  25. A. Choose an income or bond fund within the same family of funds, because he will not be charged a new sales charge or be taxed on any gains made on the sale of the growth fund.
  26. B. Choose an income or bond fund within the same family of funds, because he will not be charged a new sales charge, but he will taxed on any gains made on the sale of the growth fund.
  27. C. Choose an income or bond fund within the same family of funds while he will be charged a new sales charge, he will not be taxed on any gains made on the sale of the growth fund.
  28. D. It doesn’t matter whether Jon chooses a different fund within the same family or not, because he will still be charged a new sales charge and be taxed on any gains made on the sale of the growth fund.
  29. 5. What is the purpose of a letter of intent?
  30. A. A letter of inten

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