Series 7 Exam Question 57: Answer and Explanation

Question: 57

Which of the following is exempt from the registration requirements under the Investment Company Act of 1940?

• A. Mutual funds
• B. Closed-end funds
• C. Variable annuities
• D. Fixed annuities

Correct Answer: D

Explanation:

D. Since the payouts are guaranteed by the issuer, fixed annuities are not considered investment companies and are exempt from the registration requirements under the Investment Company Act of 1940.