SIE (Securities Industry Essentials) Practice Exam

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What is the maximum valid period for a customer's letter of intent on a mutual fund purchase?

6 months
9 months
12 months
13 months

The correct answer is: 13 months

The maximum valid period for a customer's letter of intent on a mutual fund purchase is 13 months. This is because a letter of intent is a document that states a customer's intention to invest a certain amount of money in a mutual fund within a certain period of time. This period can range from a few months to a year or more. However, the maximum limit allowed under SEC rules is 13 months. Option A, B, and C are incorrect because they are within this maximum limit. Additionally, option A and B are also common periods for a letter of intent, but they do not represent the maximum valid period. Option C is just under the maximum, but it is still incorrect as it exceeds the allowed limit. Therefore, the correct maximum valid period for a customer's letter of intent on a mutual fund purchase is 13 months.