[amp_mcq option1=”T+2″ option2=”T+1″ option3=”T+3″ option4=”T+4″ correct=”option3″]
The correct answer is: C. T+3
RTA stands for Redemption Transfer Agent. It is a company that is responsible for processing redemptions of shares in a mutual fund. When a shareholder redeems their shares, the RTA will send the money to the shareholder’s bank account. The RTA will also send a report to the exchange, which will update the number of shares outstanding in the fund.
The RTA carries out the redemption processing at its end and provides final redemption information to the exchange on T+3. This means that the RTA will process the redemption and send the money to the shareholder’s bank account on the third business day after the redemption request is received. The RTA will then send the report to the exchange on the same day.
The other options are incorrect because they do not reflect the standard settlement cycle for redemptions. The standard settlement cycle for redemptions is T+3, which means that the redemption must be settled within three business days.