Test Your Knowledge About Funds Administration! Trivia Quiz

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| By Ameaney

Ameaney

Community Contributor

Quizzes Created: 2 | Total Attempts: 3,163

Questions: 6 | Attempts: 2,810 | Updated: Mar 22, 2023

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Test Your Knowledge About Funds Administration! Trivia Quiz - Quiz

This is a brief quiz to test your understanding of our Funds Administration Overview lesson. In any scheme, it is important to have an underlined way in which funds can be transferred in and out and properly track its movements. Take the quiz and see if you might need to research more on the topic. All the best!

Questions and Answers

1.

Funds Administration is the name given to the set of services provided in support of the running of a fund.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Funds Administration refers to the range of services offered to facilitate the operations of a fund. This includes tasks such as managing investments, handling transactions, maintaining records, and providing reporting and accounting services. Therefore, it is accurate to say that Funds Administration is the name given to the set of services provided in support of the running of a fund.

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2.

The fund manager outsources fund administration services to:
- A.
  
  Government agencies
- B.
  
  3rd party service providers
- C.
  
  Other fund managers
Correct Answer
B. 3rd party service providers

Explanation
The fund manager outsources fund administration services to 3rd party service providers. This means that the fund manager hires external companies or organizations to handle tasks such as accounting, reporting, and compliance on behalf of the fund. By outsourcing to 3rd party service providers, the fund manager can benefit from their expertise and specialized services, allowing them to focus on their core investment strategies. This also helps in reducing costs and improving efficiency as the fund manager does not have to invest in building and maintaining an in-house team for fund administration.

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1
0
3.

The Funds Administration Industry refers to the group of companies providing these support services.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement is explaining that the Funds Administration Industry consists of companies that offer support services. This means that the statement is true because it accurately describes the definition and scope of the industry.

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4.

Which service does the Fund Manager not outsource to the Fund Administrator?
- A.
  
  Payment of the funds expenses
- B.
  
  Portfolio management and investment decision making
- C.
  
  Reconciliation of daily and monthly broker statements
Correct Answer
B. Portfolio management and investment decision making

Explanation
The Fund Manager does not outsource portfolio management and investment decision making to the Fund Administrator. This is because these tasks require expertise and knowledge specific to the Fund Manager's investment strategy and objectives. By keeping these responsibilities in-house, the Fund Manager can have more control over the investment decisions and ensure they align with the fund's goals. On the other hand, tasks such as payment of fund expenses and reconciliation of broker statements can be outsourced to the Fund Administrator as they are more administrative in nature and can be efficiently handled by a third-party service provider.

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5.

The fund administrator can also provide shareholder services including the processing of subscriptions and redemptions to the fund
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement is true because fund administrators are responsible for various tasks related to the management of a fund, including shareholder services. This includes handling the processing of subscriptions, which is when investors contribute money to the fund, and redemptions, which is when investors withdraw their money from the fund. By providing these services, the fund administrator ensures smooth and efficient transactions for the shareholders of the fund.

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6.

Fund administration falls into which category?
- A.
  
  Front Office
- B.
  
  Middle Office
- C.
  
  Back Office
Correct Answer
C. Back Office

Explanation
Fund administration falls into the category of Back Office. The Back Office is responsible for the administrative and support functions of a financial institution, including tasks such as record-keeping, settlement, and processing of transactions. Fund administration involves activities such as accounting, reporting, and compliance for investment funds. These tasks are typically performed in the back office to ensure smooth operations and compliance with regulatory requirements.

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Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
Mar 23, 2012

Quiz Created by
Ameaney

Test Your Knowledge About Funds Administration! Trivia Quiz

Funds Administration is the name given to the set of services provided in support of the running of a fund.

The fund manager outsources fund administration services to:

The Funds Administration Industry refers to the group of companies providing these support services.

Which service does the Fund Manager not outsource to the Fund Administrator?

The fund administrator can also provide shareholder services including the processing of subscriptions and redemptions to the fund

Fund administration falls into which category?