Series 65: Exercise

Taken from our Series 65 Online Guide

Exercise

Answer the following questions.

1. Which statement is true regarding NAV per share?

A. NAV is the amount an investor will pay for shares in a mutual fund.

B. NAV is used to determine breakpoints.

C. NAV is calculated just before the markets open on trading days.

D. NAV represents the current value of a mutual fund share.

2. What classes of shares are sold at NAV with no up-front load?

I. A shares

II. B shares

III. C shares

IV. D shares

A. I and IV

B. II and III

C. I and III

D. III and IV

3. Distribution fees may also be known as:

I. Fees paid for marketing and selling fund shares, such as advertising, printing, and mailing

II. Front-end fees

III. 12b-1 fees

IV. Management fees

A. II and IV

B. I and III

C. I and IV

D. II and II.

4. What is the purpose of a letter of intent?

A. A letter of intent accompanies the prospectus and explains the terms of sale to potential investors.

B. A letter of intent allows an investor to place a price-per-share bid on an intended purchase.

C. A letter of intent allows an investor to pay a sales charge based on a lower breakpoint on sales during a specified period of time.

D. A letter of intent allows an investor to reserve shares for a future purchase at a specified time when he has the money.

5. What is the purpose of rights of accumulation?

A. Rights of accumulation allow an investor to choose whether to apply accumulation (appreciation) in her account to cash dividends or purchase of new shares.

B. Rights of accumulation allow an investor to pay a sales charge based on a lower breakpoint calculated by includi

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