Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

GBA/RPA 3 MR > M8: Quizzes > Flashcards

M8: Quizzes Flashcards

1
Q

For the portion of retirement income that is generated from investment assets, the IRS requires individuals to take a RMD if the individual is not working and is retired. The distribution beings at age ____ in 2023.

A. 72
B. 73
C. 75
D. 70.5

A

B. 73

Text, page 290; Study materials update, April 2023, pages 3,4, and 19

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A ______ allows individuals to defer a certain portion of income up to age 85.

A. QLCA
B. QALC
C. QCLA
D. QLAC

A

D. QLAC

Text, pg 291

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The ________ increased the age that retirees were forced to withdraw a certain percentage of their assets from retirement accounts.

A. The Dodd-Frank Act
B. The Investment Company Act of 1940
C. ERISA Section 404
D. SECURE and SECURE 2.0 Acts

A

D. SECURE and SECURE 2.0 Acts

Text, pg 300; Study materials update, April 2023, pgs 3,4, 19

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Funds that are legally classified as “open-end investment companies” are subject to regulation under the Investment Company Act of 1940 and are known as _________.

A. Bonds
B. Private funds
C. Stocks
D. Mutual funds

A

D. Mutual funds

Text, pg 317

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Section _______ requires all plans to have at least one “named fiduciary”

A. 402
B. 403(b)
C. 401(a)
D. 403

A

A. 402

Text, pg 316

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Often called a ______ arrangement, this involves the rendering of investment advice for a fee or other compensation.

A. 3(20)
B. 3(21)
C. 3(30)
D. 3(38)

A

B. 3(21)

Text, pg 316

IS THIS CORRECT?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

_______ funds typically seek to match an index of securities, meaning the fund will usually align fairly closely with the return of the index.

A. Passive
B. Active
C. White label
D. Aggressive

A

A. Passive

Text, pg 318

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

______ funds are only offered to benefit plans and are not subject to the same disclosure requirements as mutual funds.

A. Collective Investment
B. Hedge
C. Private equity
D. Green label

A

A. Collective Investment

Text, pg 321

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

SECURE 2.0 expands the RMD exemption for QLAC funds by eliminating the requirement the premium can’t exceed 25% of the individual’s IRA balance and increasing the QLAC dollar limit to ______ (indexed to cost of living beginning in 2024).

A. $150,000
B. $175,000
C. $200,000
D. $125,000

A

C. $200,000

Study Materials Update - April 2023 pg 20

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

In an effort to reduce expenses, fiduciaries of participant-directed plans may use a separate account that invests directly in stocks, bonds, or other types of individual securities and these are known as _______ funds.

A. Hedge
B. White label
C. Private
D. Green label

A

B. White label

Text, page 326

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The _____ research project supported a retirement income menu design with at least 3 income generator options.

A. SOA/SCL
B. SCL/SSA
C. SOS/SCL
D. SOL/SCL

A

A. SOA/SCL

Study Guide, page 5, learning objective 1/5; text pg 292

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What type of plan provides retirement income to individuals of an older age?

A. Life annuity
B. QLAC
C. Income generator
D. Life benefit

A

B. QLAC

Study guide, page 11, learning objective 2.1; text pg 296

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The maximum age at commencement of a QLAC is currently set at the age of ____.

A. 75
B. 80
C. 85
D. 77

A

C. 85

Study guide, page 12, learning objective 2.4(b); text, pg 297-298

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Collective investment trusts are offered only to _____ plans.

A. Retirement
B. Savings
C. Medical
D. Benefit

A

D. Benefit

Study guide, page 24, learning objective 6.5(a); text, pg 320-322

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

______ investments generally encompass private investments including hedge funds and other private vehicles.

A. Stable
B. Alternative
C. Annuity
D. Income generator

A

B. Alternative

Study guide, page 27, learning objective 6.10; text pgs 328-331

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

_______ funds generally do not redeem their shares.

A. Open-end
B. Closed-end
C. Alternative
D. Annuity

A

B. Closed-end

Study guide, page 23, learning objective 6.3; text pg 320

17
Q

______ funds are separate accounts that invest directly in stocks, bonds, or other types of individual securities in lieu of a pooled fund.

A. Green label
B. Black label
C. White label
D. Red label

A

C. White label

Study guide, pg 26, learning objective 6.8; text, pg 326-327

18
Q

______ funds are classified as open-end investment companies.

A. Stock
B. Annuity
C. Mutual
D. ETF

A

C. Mutual

Study guide, pg 23, learning objective 6.3; text, pg 320

19
Q

Typical retirement income goals include all of the following, EXCEPT:

A. A desire for liquidity to meet emergencies
B. Maximizing expected retirement
C. Income that does not decrease due to capital market volatility
D. Income that does not keep up with inflation

A

D. Income that does not keep up with inflation

Study guide pg 8, learning objective 1.3; text pg 289

20
Q

The ______ responded to fiduciaries’ past concerns that they could be held responsible for an insurer’s solvency if they selected an annuity provider.

A. Dodd-Frank Act
B. QDIA Act
C. SECURE Act
D. Sulyma Intel Act

A

C. SECURE Act

Study guide pg 14, learning objective 3.3; text, pg 30

21
Q

There is no maximum age to begin payments under a QLAC.

A. True
B. False

A

B. False

22
Q

Section 404 of ERISA sought to install longstanding principles of fiduciary conduct that had been developed under the common law of trusts with the specific intent of protecting participants in employee benefit plans.

A. True
B. False

A

A. True

23
Q

Closed-end funds generally redeem their shares.

A. True
B. False

A

B. False

24
Q

Per SECURE 2.0, the total premium of a QLAC cannot exceed $200,000 (indexed to the cost of living beginning in 2024).

A. True
B. False

A

A. True

25
Q

The “prudent man” standard requires investments to be made with skil, prudence, and diligence.

A. True
B. False

A

A. True

26
Q

An investment policy statement (IPS) is expressly required under ERISA.

A. True
B. False

A

B. False

27
Q

Prudent investing is not judged on the investment results in hindsight, but rather by the process employed to investigate and monitor the investment.

A. True
B. False

A

A. True

28
Q

Hiring an investment advisor or investment manager relieves the named fiduciary from understanding the nature of the plan’s investments and chosen investment strategies.

A. True
B. False

A

B. False

29
Q

Passive funds typically seek to match an index of securities, while active funds attempt to outperform the market.

A. True
B. False

A

A. True

30
Q

Green label funds are separate accounts that invest directly in stocks, bonds, or other types of individual securities in lieu of a pooled fund.

True or False

A

False

White label

31
Q

A type of investment that provides retirement income to individuals starting at an advanced age is known as a:

A. RIG
B. QLAC
C. DC plan with lifetime income options
D. SOA/SCL
E. Annuity

A

B. QLAC

Study Guide, Module 8, Page 11, Learning Objective 2.1
Text, Page 296

32
Q

Mutual funds are often used as an investment vehicle in ERISA plans. All of the following are true regarding mutual funds, EXCEPT:

A. Mutual funds are not subject to direct regulation by ERISA
B. Mutual funds are not subject to regulation under the Investment Company Act of 1940
C. Mutual funds issue redeemable shares
D. Mutual funds are required to provide appropriate disclosure documents

A

B Mutual funds are not subject to regulation under the Investment Company Act of 1940

Study Guide, Module 8, Page 22, Learning Objective 6.1
Text, Pages 317-318

GBA/RPA 3 MR (33 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions