Chapter 10-13 Exam Questions With Verified Answers.
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Chapter 10-13
Institution
Chapter 10-13
Chapter 10-13 Exam Questions With
Verified Answers.
An investor purchases a mutual fund by making regular automatic purchases of the fund. Identify
the investment method the investor is using.
A. Automatic Reinvestment Plan (ARP).
B. Pre-authorized Contribution Plan (PAC).
C. Purchase Commitm...
Chapter 10-13 Exam Questions With
Verified Answers.
An investor purchases a mutual fund by making regular automatic purchases of the fund. Identify
the investment method the investor is using.
A. Automatic Reinvestment Plan (ARP).
B. Pre-authorized Contribution Plan (PAC).
C. Purchase Commitment Arrangement (PCA).
D. Average Purchase Plan (APP). - answer✔B. Pre-authorized Contribution Plan (PAC).
There are many purchase plans, ranging from one-time, lump-sum purchases to regular
purchases in small amounts under periodic accumulation plans (called pre-authorized
contribution plans or PACs).
Identify the electronic source that may be used to access mutual fund reports.
A. SEDAR.
B. TSX.
C. MFDA.
D. IIROC. - answer✔A. SEDAR.
Sponsors of mutual funds file a variety of reports annually to meet their regulatory disclosure
requirements. These reports include the annual information form (AIF), audited annual and
interim financial statements and an annual report, among others. The reports must be provided to
unitholders or any person on request. They are easily retrieved through SEDAR (the System for
Electronic Document Analysis and Retrieval). Increasingly, these reports contain useful
educational features such as manager commentaries.
Identify the day by which the Fund Facts document must be delivered to the purchaser of a
mutual fund.
A. Trade day.
B. 2nd business day after trade day.
C. Last day of the quarter in which the trade is made.
D. Prior to the trade. - answer✔D. Prior to the trade.
The mailing or delivery of the simplified prospectus must be made to the purchaser prior to the
purchase.
Choose the entity that is responsible for the day-to-day supervision of a mutual fund
corporation's investment portfolio.
A. Portfolio manager.
B. Board of Directors.
C. Fund Manager.
D. Custodian. - answer✔C. Fund Manager.
The fund manager provides day-to-day supervision of the fund's investment portfolio. While a
fund manager may provide portfolio management to a fund it manages, most often it hires a
company that specializes in providing such services, often an affiliated company.
Jessica is an employee of ABC Credit Union and is licensed to sell mutual funds. Identify the
organization on whose behalf Jessica is acting when she sells XYZ mutual funds, managed by
DEF Fund Managers, with GHI Trust as custodian.
A. ABC Credit Union.
B. DEF Fund Managers.
C. GHI Trust.
D. XYZ Mutual Funds. - answer✔D. XYZ Mutual Funds.
When selling or providing advice or information about mutual funds, these employees are acting
solely on behalf of the affiliated mutual fund dealer.
Marybeth asks her sales representative for information about the directors of her mutual fund
investment. Identify the document that the sales representative could provide to meet her needs.
A. Fund Facts.
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