Which of the Following Was Established to Protect the Investment

question 8

Multiple Choice

Which of the following was established to protect the investment public against fraudulent and deceitful practices on the part of investment people who provide them with advice?

• A)The Investment Advisor Act of 1940.
• B)The Investment Advisor Act of 1972.
• C)The Financial Planner Act of 1940.
• D)The Financial Planner Act of 1972.
• E)None of the above.

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Definitions:

Futures Contract

An agreement in law to buy or sell a designated financial product or commodity at an agreed-upon price, to be fulfilled at a future time.

Arbitrage

The simultaneous purchase and sale of the same assets or commodities in different markets to take advantage of differing prices for the same asset.

Interest Rate Risk

The potential for an investment's value to change due to fluctuations in the general level of interest rates.

T-Bond Futures

Financial contracts used to speculate on or hedge against the future price movements of U.S. Treasury bonds.