Fiduciaries - Sample Questions 1 - 3

1. Which of the following are duties of an executor upon the death of a decedent?

I. Inventory of assets
II. Filing of the estate and gift tax return
III. Filing of the final income tax return
IV. Payment of debts due

A) II and III only
B)
III and IV only
C)
I, II and IV only
D) I, II, III and IV

2. Which of the following are powers, rights and responsibilities of an independent or corporate trustee?

I. Right to receive a trustee fee for service.
II. Exercise diligence in managing the trust assets.
III. Follow all requests submitted by the beneficiaries.
IV. Carry out the provisions of the trust document.

A) I and II only
B)
II and III only
C)
I, II and IV only
D) II, III and IV only



3. All of the following would be considered a breach of fiduciary duty EXCEPT:

A) Trustee makes decisions based on the best interest of the beneficiary.
B)
Trustee mixes personal assets with trust assets.
C)
Fiduciary only deals with family members for outside services.
D) The fiduciary makes decisions based on their best interests.


Answer Key


Related Articles
  1. Professionals

    Sample Questions 1 - 4

    Sample Questions 1 - 4
  2. Professionals

    Practice Questions 10 - 13

    Practice Questions 10 - 13
  3. Professionals

    Sample Questions 1 - 4

    Sample Questions 1 - 4
  4. Professionals

    Sample Questions 9 - 14

    Sample Questions 9 - 14
  5. Professionals

    Sample Questions 5 - 8

    Sample Questions 5 - 8
  6. Professionals

    Sample Questions 1 - 3

    Sample Questions 1 - 3
  7. Professionals

    Sample Questions 1 - 5

    Sample Questions 1 - 5
  8. Professionals

    Sample Questions 27 - 31

    Sample Questions 27 - 31
  9. Professionals

    Sample Questions 1 - 4

    Sample Questions 1 - 4
  10. Professionals

    Sample Questions 1 - 4

    Sample Questions 1 - 4
RELATED TERMS
  1. Fiduciary

    A fiduciary is a person who acts on behalf of another person, ...
  2. Incorporated Trustee

    A corporation, usually a trust company, which is named as the ...
  3. Trustee

    A person or firm that holds or administers property or assets ...
  4. Acceptance Of Office By Trustee

    A mutual understanding that a person has with the estate that ...
  5. Schedule II Bank

    A bank which is a subsidiary of a foreign bank and authorized ...
  6. Prudent Investor Act

    A U.S. law that sets the standard of fiduciary duty for those ...
RELATED FAQS
  1. Which statement(s) is/are FALSE about market risk?

    I. It is mitigated by writing calls.II. It includes the risk the investor will lose invested principal.III. It is the same ... Read Answer >>
  2. Which statements about common shareholder rights are FALSE? I. A shareholder may ...

    The correct answer is a. I should be the the other way around: convertible bond holders can exchange their bonds for shares. ... Read Answer >>
  3. Which of the following are tools that are employed by the Federal Reserve in its ...

    I. Moral suasionII. Changing the discount rateIII. Changing the reserve requirementIV. Changing the prime interest rate A. ... Read Answer >>
  4. Which of the following statements is (are) true with respect to setting the proper ...

    The correct answer is: d) Choice II is incorrect because the longer the investment horizon, the less emphasis must be placed ... Read Answer >>
  5. Which of the following are not types of open-end management investment companies ...

    The correct answer is d) Hedge funds are extremely aggressive entities that engage in margin and short-selling.  They are ... Read Answer >>
  6. Which of the following signatures are required on a client’s new account form ... ...

    The correct answer is B. While local practices of a broker-dealer might require the client to sign the form, even when opening ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center