A mutual fund custodian is paid according to which of the following specifications when receiving deposits from a shareholder's reinvestment plan?

• A.a commission for each share purchased
• B.a percentage of the sales charge
• C.a processing fee
• D.a percentage of the fund's net asset value

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Which of the following municipal securities carries the full faith and credit of the US government for payment of interest and principal if the issuer's funds are insufficient?

• A.general obligation bonds issued municipalities
• B.special tax bonds issued by municipalities
• C.revenue bonds issued by municipal port authorities
• D.new housing authority bonds issued by a public housing authority

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Which of the following pays interest at maturity only?

• A.a corporate serial bond
• B.US treasury bills
• C.Income bonds
• D.Series H savings bonds

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Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at
47.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the preferred stock is:

• A.overpriced and will quickly decline
• B.selling at a 4% premium over conversion value
• C.underpriced and should rise quickly
• D.going to be called when the common stock price is $52

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Which bond buyer index reflects the lowest average yield for municipal bonds?

• A.the 50-bond index
• B.the 20-bond index
• C.the 11-bond index
• D.the weekly unsold bond index

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