Question

Per requirements of 12 CFR 9.18, collective investment funds must be valued at least __________.

1) quarterly.
2) quarterly, except for real estate (a)(2) funds.
3) annually, unless otherwise dictated by the written plan.
4) each time admissions and withdrawals are made.
5) monthly.

Answer 1

Collective investment funds must be valued at least quarterly under 12 CFR 9.18, with an exception for real estate (a)(2) funds.

Step-by-step explanation:

According to 12 CFR 9.18, collective investment funds must be valued at least quarterly. This regulation is specifically in the context of the valuation of bank-maintained collective investment funds, often known as CIFs or collective trust funds. There is an exception for real estate (a)(2) funds, where valuation may have a different schedule as specified in the written plan governing the fund. Therefore, the correct answer to the student's question is option 2) quarterly, except for real estate (a)(2) funds.