Which of the Below Statements Is FALSE

question 53

Multiple Choice

Which of the below statements is FALSE?

• A) The operating expense, also called the expense ratio, is debited annually from the investor's fund balance by the fund sponsor.
• B) The management fee, also called the investment advisory fee, is the fee charged by the investment advisor for managing a fund's portfolio.
• C) While covering the annual operating expenses, the fund prospectus does not provide the fees, which are imposed only at the time of a transaction.
• D) In 1980, the SEC approved the imposition of a fixed annual fee, called the 12b-1 fee, which is, in general, intended to cover distribution costs, including continuing agent compensation and manufacturer marketing and advertising expenses.

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Definitions:

Existing Mortgage

A mortgage that is currently in place on a property, affecting its sale, transfer, or refinancing.

Mortgagor

An individual or entity who borrows money to purchase property and pledges that property as collateral for the loan.

Oral Agreement

A verbal contract between parties that is legally binding, although harder to prove than a written agreement.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be legally enforceable.