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Finra Series-7 Exam - Topic 2 Question 119 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 119
Topic #: 2
[All Series-7 Questions]

Which of the following is not a practice of a mutual fund custodian?

Show Suggested Answer Hide Answer
Suggested Answer: C

lending the fund's securities to banks or broker/dealers. This practice is not permitted under federal law.


by Gregg at Nov 21, 2025, 04:58 PM

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Malcom
6 days ago
C is definitely not a custodian's practice. Solid reasoning!
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Nikita
11 days ago
I chose A. Changing registrations feels like a fund manager's job.
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Bronwyn
17 days ago
Definitely C. Lending isn't their role.
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Joanna
22 days ago
They really don’t handle sales records? That’s surprising!
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Yvonne
27 days ago
D seems like the odd one out to me.
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Gail
2 months ago
Wait, are you sure about that? I thought they did!
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Mariann
2 months ago
I agree, custodians don’t lend securities.
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Xuan
2 months ago
C is definitely not a custodian's job.
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Salena
2 months ago
Haha, the custodian is like the bank teller of the mutual fund world. They just handle the boring stuff, not the fun stuff like lending securities.
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Na
2 months ago
D seems like the correct answer. Maintaining sales records is the underwriter's responsibility, not the custodian's.
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Chantell
2 months ago
I think the answer is C. Lending securities is not a custodian's job.
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Gail
3 months ago
Lending securities sounds like something a custodian would do, but I can't recall if it's a core function or not.
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Annelle
3 months ago
I feel like changing shareholder registrations might be something they do, but I'm not completely confident about that.
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Kandis
3 months ago
I remember a practice question about custodians and their roles, and I think they definitely do disburse dividends, so that can't be the answer.
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Phillip
3 months ago
I think the custodian is involved in managing assets, but I'm not sure if they handle sales records for underwriters.
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Yasuko
3 months ago
Ugh, I'm still a bit confused on the exact responsibilities of a mutual fund custodian. Guess I need to review that section again before the exam.
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Carmelina
3 months ago
I'm leaning towards C as the answer, since lending securities doesn't seem like a core custodian duty. But I'll double-check my notes to be sure.
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Juliann
4 months ago
I feel like D could be tricky too. But it's more about sales.
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Maddie
4 months ago
Agreed, C seems off. They focus on safekeeping.
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Miriam
4 months ago
I think it's C. Custodians don't lend securities.
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Aleta
4 months ago
I'm pretty confident the custodian doesn't handle sales records for the underwriter. That seems more like an administrative function.
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Colette
4 months ago
B is the right answer. Disbursing dividends and gains is a key custodian function.
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Chi
5 months ago
Okay, let's see. I know the custodian handles things like shareholder records and distributions, but lending securities? That doesn't sound right.
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Luisa
5 months ago
Hmm, this one seems tricky. I'll need to think through the different responsibilities of a mutual fund custodian.
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Laura
1 day ago
I think it's C. Lending securities doesn't seem like a custodian's job.
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