Series 24: Review Quiz

Review Quiz

1. 1. According to the Investment Company Act of 1940, which of the following is not a type of investment company?
2. A. a unit investment trust
3. B. a brokerage firm
4. C. a closed-end company
5. D. a face-amount certificate company
6. 2. The net asset value (NAV) of an open-end mutual fund is calculated:
7. A. at least once a day
8. B. at 12 noon and 4 PM
9. C. at the opening and close of the stock exchanges
10. D. none of the choices listed
11. 3. Jason intends to invest part of his $200,000 inheritance into mutual funds through his broker. What means are available to him to minimize his sales charges?
12. I. the combination privilege
13. II. dollar cost averaging
14. III. the letter of intent
15. IV. rights of accumulation
16. V. non-constructive receipt
17. A. I, II, III, and IV
18. B. II, III, and V
19. C. I, II, III, and V
20. D. I, III, and IV
21. 4. When recommending a large investment in mutual fund shares to a client with a long investment horizon, the most suitable investment would typically involve:
22. A. A-shares
23. B. B-shares
24. C. C-shares
25. D. M-sha