A “covered member” who has a financial interest in a mutual fund that invests in a client is considered to have Group of answer choices an indirect financial interest in the client. a direct financial interest in the client. no financial interest in the client. a partial financial interest in the client.

A “covered member” who has a financial interest in a mutual fund that invests in a client is considered to have Group of answer choices an indirect financial interest in the client. a direct financial interest in the client. no financial interest in the client. a partial financial interest in the client.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations

Section: Chapter Questions

Problem 6RP

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Under the ethical standards of the profession, which of the following investments in a client is NOT considered to be a direct financial interest? A. An investmentheld through a nonclient regulated mutual fund. B An investment held through a nonclient investment club. C. An investment held in a blind trust D. An investment held by the trustee of a trust.
a. The purchase of mutual fund shares. b. Depositing in a credit union. c. Borrowing from a friend or relative. d. Employee contribution to a pension fund. Which ones of the above are examples of indirect financing? a and b a, b and c a, b and d a, c and d all of the above.
1. A contract issued containing terms and conditions of the bond issued. a. debentures b. indentures c. agreement 2. Which of the following is NOT true about private placement? a. A private placement need to be registered with SEC b. Pension funds, insurance companies are the usual investors of portfolio issued under private placement c. The company still need to disclose financial data to convince investors
Which Mutual fund are normally promoted by registered representatives? a. Growth and income Mutual Fund b. Load Mutual Fund c. Open Ended Mutual Fund d. Close ended Mutual Fund
49.The redeemable cash value of a life insurance policy (cash surrender value) where the insured is the president of the Corporation and the beneficiary is the same Corporation, is presented in the Statement of Financial Position as Select one: a.Cash. b. Long-term investment c. Investment in negotiable securities. d. Insurance paid in advance
Which of the following statements about constituent funds in the Mandatory Provident Fund (MPF) Scheme is INCORRECT? A) They are options offered within a master trust. B) The employer selects which constituent fund the employee invests in. C) One of the funds must be a capital preservation fund. D) They can invest directly in an Approved Pooled Investment Fund.
A _______________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds. hedge fund unit investment trust money market fund mutual fund
which of the following applies to mutual fund trust? a) it has board of directors and shareholders b) it has unitholdes c) it is not efficient at passing through income to investors d) it is always closed end
A covered member creates a blind trust and transfers assets into the blind trust. The covered member will not supervise or participate in the trust’s investment decisions during the term of the trust. if the covered member retains the right to amend or revoke the trust, Will the trust and the underlying assets be considered the covered member’s direct financial interests? Yes or No
Which of the following organizations/entities does a mutual fund appoint to collect money received fromthe fund's purchasers and from portfolio income, as well as to arrange for cash distributions? a) A fundcustodian. b) A fund distributer c) A fund principal. d) A fund manager
H5. Discuss why the concept of fiduciary responsibilities is so important for trustees of superannuation funds.
2. A. Define interest rate risk and reinvestment risk. B. Why do banks and life insurance companies/pension funds have different investment strategies and different tolerances to interest rate risk and reinvestment risk?