Which of the Below Statements Is FALSE

Multiple Choice

Which of the below statements is FALSE?

A) The operating expense, also called the expense ratio, is debited annually from the investor's fund balance by the fund sponsor.
B) The management fee, also called the investment advisory fee, is the fee charged by the investment advisor for managing a fund's portfolio.
C) While covering the annual operating expenses, the fund prospectus does not provide the fees, which are imposed only at the time of a transaction.
D) In 1980, the SEC approved the imposition of a fixed annual fee, called the 12b-1 fee, which is, in general, intended to cover distribution costs, including continuing agent compensation and manufacturer marketing and advertising expenses.