SIE Exam Lesson 17 Investment Company Act of 1940 Quiz

SIE Exam Lesson 17 Investment Company Act of 1940 Quiz

This is a SIE Exam Lesson 17 Investment Company Act of 1940 Quiz, See how you do if you need help listen to the lesson over.

Questions covered include

1. Which of the following does the Investment Company Act of 1940 regulate?

(Select all that apply.)

A. open-end mutual funds

B. closed-end mutual funds

C. unit investment trusts

D. face-amount certificate companies

2. A hedge fund is regulated by the Investment Company Act of 1940.

A. True

B. False

3. Which of the following is an obsolete investment?

A. closed-end mutual fund

B. face-amount certificate

C. open-end mutual fund

D. unit investment trust

4. Which of the following is NOT a characteristic of a face-amount certificate?

A. At the end of the maturity date, its investor would have a lump sum that is greater than the money he/she put in.

B. It has a fixed maturity date.

C. Its investor should pay a specific amount of money on a quarterly basis.

D. The money put on it is invested in very high quality securities.

5. These were used back then as guarantee when there was no mortgage yet and a bank makes a loan to an individual (i.e. to buy a house).

A. closed-end mutual fund

B. face-amount certificate

C. open-end mutual fund

D. unit investment trust

6. Open-end and closed-end mutual funds are run by ___.

A. face-amount certificate companies

B. hedge fund companies

C. investment management companies

D. investment trust companies

7. A closed-end fund is very similar to a new issue on a stock.

A. True

B. False

8. An open-end fund is a mutual fund where you buy an interest in a pool of securities at ___.

A. net asset value

B. net asset value plus interest rate

C. net asset value plus sales charge

D. sales charge

9. The net asset value of an open-end fund is calculated ___.

A. everyday

B. every three business days

C. every week

D. every month

10. The net asset value of an open-end fund is the investor’s proportional interest in a basket of securities that are held by the mutual fund.

A. True

B. False

11. A unit investment trust has fixed portfolio for a specific set of time for a specific time period.

A. True

B. False

12. Which of the following is true about variable annuity?

A. It is a retirement investment plan.

B. It is invested in a fixed income investment portfolio.

C. It provides a fixed return.

D. all of the above

 We hope you did well on this SIE Exam Lesson 17 Investment Company Act of 1940 Quiz

 

Total Course 37 hours 10 Min

37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam

59 Audio Lessons for Securities Industry Essentials Exam

13 Bonus Lessons about the finance industry

Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam

The full course details:

37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam

59 Audio Lessons for Securities Industry Essentials Exam

13 Bonus Lessons about the finance industry

Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam

New Series 7 Exam and SIE Exam details.

All candidates now must now pass both the SIE exam (securities industry essentials exam) as well as the New Top-Off Series 7 Exam. A Series 7 candidate must also have an industry sponsor in order to take the examination to take the SIE Exam the candidate simply needs to be 18 years old and no broker affiliation is needed..

https://www.finra.org/industry/essentials-exam

“Securities Industry Essentials (SIE) Exam

Available Beginning October 1, 2018

The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry informa...