SIE (Securities Industry Essentials) Practice Exam

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The term 'disclaimer' is most often associated with which of the following?

Government's inability to guarantee prospectus accuracy
A guarantee of investment returns
Disclosure of administrative fees
Explanation of insurance benefits

The correct answer is: Government's inability to guarantee prospectus accuracy

A disclaimer is a statement denying responsibility or limiting liability. Option A is the most fitting answer because it refers to a situation in which the government cannot guarantee the accuracy of a prospectus or investment document. Option B is incorrect because a disclaimer does not provide a guarantee. Option C is incorrect because a disclaimer is not necessarily a disclosure of fees, but rather a statement of non-responsibility. Option D is incorrect because a disclaimer is not specifically related to insurance benefits, but can be applied to various types of information and claims.