SIE practice questioneasyMutual Fund Fees
A mutual fund's 12b-1 fee is primarily used to cover:
- APortfolio transaction costs
- BMarketing and distribution expenses✓ Correct answer
- CCustodial and legal fees
- DManagement fees owed to the advisor
Explanation
Why B — Marketing and distribution expenses
A is correct; 12b-1 fees are used for marketing and distribution. B and C represent other fund expenses, not covered by 12b-1. D refers to the adviser's management fee, not the 12b-1 fee.
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