FINRA Series-7 Question Answer
Which of the following statements regarding mutual funds is true?
the custodian can also be the transfer agent
the sponsor receives a management fee based on the fund’s total assets
the terms “management company” and “investment advisor” are interchangeable
the management company receives a portion of the sales load for managing the fund assets
the custodian can also be the transfer agent. This has become increasingly common. None of the other choices are correct.
TESTED 06 Jul 2025
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