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Which of the following is not a practice of a mutual fund custodian?
Suggested Answer: C
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lending the fund's securities to banks or broker/dealers. This practice is not permitted under federal law.
29 comments · newest first
MA
Malcom
7 months ago
C is definitely not a custodian's practice. Solid reasoning!
NI
Nikita
7 months ago
I chose A. Changing registrations feels like a fund manager's job.
BR
Bronwyn
7 months ago
Definitely C. Lending isn't their role.
JO
Joanna
8 months ago
They really don’t handle sales records? That’s surprising!
YV
Yvonne
8 months ago
D seems like the odd one out to me.
GA
Gail
8 months ago
Wait, are you sure about that? I thought they did!
MA
Mariann
9 months ago
I agree, custodians don’t lend securities.
XU
Xuan
9 months ago
C is definitely not a custodian's job.
SA
Salena
9 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.
NA
Na
9 months ago
D seems like the correct answer. Maintaining sales records is the underwriter's responsibility, not the custodian's.
CH
Chantell
9 months ago
I think the answer is C. Lending securities is not a custodian's job.
GA
Gail
9 months ago
Lending securities sounds like something a custodian would do, but I can't recall if it's a core function or not.
AN
Annelle
10 months ago
I feel like changing shareholder registrations might be something they do, but I'm not completely confident about that.
KA
Kandis
10 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.
PH
Phillip
10 months ago
I think the custodian is involved in managing assets, but I'm not sure if they handle sales records for underwriters.
YA
Yasuko
10 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.
CA
Carmelina
10 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.
JU
Juliann
10 months ago
I feel like D could be tricky too. But it's more about sales.
MA
Maddie
11 months ago
Agreed, C seems off. They focus on safekeeping.
MI
Miriam
11 months ago
I think it's C. Custodians don't lend securities.
AL
Aleta
11 months ago
I'm pretty confident the custodian doesn't handle sales records for the underwriter. That seems more like an administrative function.
CO
Colette
11 months ago
B is the right answer. Disbursing dividends and gains is a key custodian function.
CH
Chi
11 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.
LU
Luisa
12 months ago
Hmm, this one seems tricky. I'll need to think through the different responsibilities of a mutual fund custodian.
LO
Louvenia
6 months ago
D seems more like an underwriter's role. Custodians don't maintain sales records.
SA
Sabina
6 months ago
True, but that's still part of record-keeping, right?
SA
Sabra
7 months ago
But what about A? Changing shareholder registrations sounds important too.
VI
Vincent
7 months ago
Yeah, I agree. Custodians usually handle records and distributions.
LA
Laura
7 months ago
I think it's C. Lending securities doesn't seem like a custodian's job.