Which of the following statements regarding mutual funds is true?

• A.the custodian can also be the transfer agent
• B.the sponsor receives a management fee based on the fund's total assets
• C.the terms "management company" and "investment advisor" are interchangeable
• D.the management company receives a portion of the sales load for managing the fund assets

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Customers who engage in increased activity of wiring money from their account could indicate which of the following activities?

• A.Interpositioning
• B.Churning
• C.Crossing
• D.Money laundering

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Bubba wishes to invest $50,000 in three mutual funds offered by different underwriters with growth as the main objective. A recommendation to purchase only one such fund for $50,000 might be more suitable to Bubba if:

• A.the growth in one fund will be greater than the combined growth in three
• B.the income from one fund will be greater than the combined income in three
• C.a withdrawal plan would be easier to employ using a single fund
• D.the purchase of one fund would probably be made at a break point allowing more dollars to be invested in fund shares

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Which of the following receives the highest priority of a municipal bond trustee when applying income and revenue derived from a financed toll facility?

• A.renewal and replacement fund
• B.operation and maintenance fund
• C.bond service account fund
• D.reserve maintenance fund

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What is the loan value on a call option held in a customer's margin account?

• A.0
• B.50%
• C.30%
• D.the compliment of the FRB initial margin requirement for listed stocks

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