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Finra Exam Series-6 Topic 7 Question 51 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 51
Topic #: 7
[All Series-6 Questions]

The board of directors of a mutual fund is responsible for:

i. authorizing purchases and sales of securities made by the fund.

ii. approving the fund's contract with its investment adviser.

iii. ensuring that the fund complies with federal securities laws regarding such issues as 12b -1 fees.

IV. establishing the fund's dividend and capital gains policy.

Show Suggested Answer Hide Answer
Suggested Answer: B

The true statement is that reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation. The rights of accumulation are not something that all mutual funds with front-end loads must offer. There is no time limit on the accumulation period. The rights of accumulation and the letter of intent are two separate animals; neither has anything to do with the other.


by Jennifer at Nov 15, 2022, 07:58 AM

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Basilia
2 days ago
The board of directors? More like the board of 'I've had enough of this mutual fund nonsense!' Amirite? But seriously, D is the way to go. Gotta keep those fund managers on a tight leash.
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Alline
10 days ago
Hmm, D is the way to go. The board has to keep their hands in everything from trades to fees to dividends. Keeping those mutual fund managers in check, am I right?
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Christoper
12 days ago
I was leaning towards B, but after re-reading the question, D does appear to be the correct choice. Gotta love those comprehensive board duties!
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Lucy
13 days ago
Yeah, D seems like the most comprehensive answer. The board has to oversee all the major aspects of the fund's operations.
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Eric
15 days ago
The board's responsibilities include authorizing securities transactions, approving the investment advisor contract, and ensuring compliance with regulations. I think option D covers all the key responsibilities.
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Leonora
10 days ago
I think option D covers all the key responsibilities.
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Melodie
1 months ago
I'm not sure about that. I think the answer might be B) I, II, and IV only.
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Edelmira
1 months ago
I agree with you. The board of directors should be responsible for all those tasks.
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Virgina
1 months ago
I think the answer is D) I, II, III, and IV.
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