SIE (Securities Industry Essentials) Practice Exam

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How does the U.S. ensure that hedge fund investors are sophisticated?

Credit history checks
Investment quizzes
Background investigations
All of the above

The correct answer is: All of the above

The correct answer is D because the U.S. government requires hedge fund investors to meet certain requirements in order to invest, and these requirements can include credit history checks, investment quizzes, and background investigations. These measures are in place to ensure that investors have a certain level of sophistication and understanding of the financial risks involved with hedge funds. Options A, B, and C might be used as part of the overall qualification process, but they are not the only methods used by the U.S. to ensure that investors are sophisticated.