Kaplan series 6 practice exam

If a registered representative wishes to make recommendations to a client, it would be most appropriate to limit those recommendations to
A) primarily to those securities that offer breakpoints at or near the investment level contemplated by the investor

...

A potential customer does not have a Social Security number, and several of his references can give only very sketchy information about him. His bank cannot confirm that he holds an account there, and when asked for a photo ID, he keeps promising to provi

...

Which federal act classifies investment companies as face-amount certificate companies, unit investment trusts, or management companies?
A) Investment Company Act of 1940
B) Securities Exchange Act of 1934
C) Securities Act of 1933
D) Investment Advisers

A

Which of the following communications must be reviewed and approved by a principal before it can be used?
A) A letter to be sent this week to 30 existing customers recommending a new service being offered by the firm
B) A letter to be sent to all customer

A

A member has just hired an individual who was formerly registered with another member firm. When requesting a copy of the terminated person's Form U-5, the former registrant must produce a copy within
A) 5 business days of the request
B) 2 business days o

b

A client expresses the desire to invest in income securities that have minimal credit risk. Which two of the following would be appropriate to recommend?
Treasury bills
Corporate intermediate term notes
Subordinated debentures
General obligation municipal

c

It is recommended that a customer purchase various call options. From this, you would expect that the fund's market outlook is
A) bullish
B) bearish
C) income oriented
D) neutral

a

For a fund to charge the maximum sales load permitted under FINRA rules, which of the following features must be among those made available to shareholders?
Quantity discounts for purchases made by any person
10-day free-look provision
Rights of accumulat

...

An investor has expressed interest in opening a UTMA account for his oldest son, age 11. He wishes to deposit a sizeable block of income securities into the account because he had heard that there are tax advantages in doing so. He intends to liquidate th

a

Individuals with a Series 6 registration, known as a Limited Representative registration, may NOT make sales of which of the following?
A) Closed-end investment company shares that are the subject of a primary offering
B) Closed-end investment company sha

b

Which of the following statements regarding mutual fund shareholders are TRUE?
They have the right to vote to fill a vacancy on the board of directors.
They will be able to redeem as many shares as desired at the next computed NAV.
They purchase shares in

...

A registered representative wishes to conduct a transaction outside the regular business of his FINRA member broker/dealer; this type of transaction is defined by the Conduct Rules as a private securities transaction. Which of the following statements reg

a

The XYZ Fund, an open-end investment company, was founded 9 years ago. If it wishes to show average annual rates of return in an advertisement, it must show returns
A) for 12 months only
B) for 1, 3, 5, and 9 years
C) for 1, 5, and 9 years
D) for each yea

d

You have a client in the 35% income tax bracket who would like to purchase a municipal GO bond being issued at par with a 4% coupon. You think this is a suitable investment for this client and explain that the
A) tax-equivalent yield is always equal to th

b
0.04/ (1-0.35)

The MNO Corporation, a growing company, is entering into negotiations with another, larger firm that is interested in acquiring MNO. Analysts feel that the action, if successful, will benefit MNO in several ways, including reducing manufacturing costs and

...

All of the following statements regarding the Code of Arbitration procedure are correct EXCEPT
A) claims involving customers require that the arbitration panel always be divided equally between industry and nonindustry arbitrators
B) arbitration is the pr

a

The preliminary prospectus for a new offering
A) may be used to solicit orders from customers
B) must carry a legend, printed in red, that declares that a registration statement has been filed with the SEC, but has not yet become effective
C) may not omit

b

Which of the following events would have the effect of weakening the US dollar against foreign currencies?
The FOMC purchases a large number of T-bills
The federal government takes on new debt
Inflation heats up
The FRB lowers the reserve requirement
A) I

...

Which of the following might trigger the filing of a Suspicious Activity Report?
A customer has entered 3 $4,000 transactions on the same day, all for the same security.
The customer has purchased stock of an industrial firm that he thinks will hold stead

...

Absent an extension, a client failing to make full payment in a cash account within the time period required under Regulation T will have her account frozen for
A) 5 business days
B) 30 calendar days
C) 60 calendar days
D) 90 calendar days

D) 90 calendar days

Which of the following phrases describes contractual plans?
A) When the original sale was made, two prospectuses had to be delivered
B) May only be sold by banks
C) Contain binding agreements that require an investor to complete the plan
D) Not subject to

C) Contain binding agreements that require an investor to complete the plan

Which of the following statements about Regulation T payment and regular way settlement are TRUE?
Regulation T payment is mandated by the Federal Reserve
Regulation T payment is requested of the customer by the broker/dealer
Regular way settlement is mand

...

Which of the following is NOT a method of purchasing annuity contracts?
A) Single premium immediate annuity
B) Periodic payment deferred annuity
C) Periodic payment immediate annuity
D) Single premium deferred annuity

C) Periodic payment immediate annuity

Distributions from net investment income paid to shareholders by an investment company meeting the requirements to be a regulated investment company are
A) taxed to the fund but not the individual shareholder
B) taxed as long- or short-term capital gains,

...

Which of the following statements concerning the tax treatment of variable life insurance to the policyholder is NOT correct?
A) Upon the death of the insured, the death benefit is exempt from income tax.
B) During the life of the policy, the earnings gro

...

A client purchasing a variable life insurance policy should expect which of the following?
Level premiums for the life of the policy
A possible reduction in premiums if separate account performance exceeds the policy's AIR
A death benefit that will never

...

Which of the following individuals would NOT be eligible to open a Keogh plan?
A) A self-employed unincorporated plumber
B) The CEO of a publicly traded corporation
C) A CPA who operates as a sole proprietorship
D) A physician who earns income from a heal

...

Your client has a cash balance in his account of $175,000 and securities holdings of $125,000. He asks about SIPC coverage and you explain that his current coverage is for
A) $100,000 securities and $100,000 cash for a total coverage of $200,000
B) his ca

b

One of your customers comes to you with a proposal to purchase shares of a municipal bond fund one of his friends has enthusiastically recommended. The minimum initial investment for this fund is $25,000, and he would like to discuss means with you for bu

...

A registered representative of a FINRA member firm decides to use email to communicate sales ideas to clients and prospects. Which of the following statements correctly describes the treatment of email?
A) All emails are subject to the 3-year recordkeepin

...

You would NOT be permitted to open an account where the owner of record is
A) the executor of an estate
B) a person who the courts have declared to be mentally incompetent
C) a court-appointed guardian
D) a limited partnership

...

Which of the following entities would issue redeemable securities?
Closed-end management investment companies
Open-end management investment companies
REITs
Variable annuity separate accounts
A) II and III
B) I and III
C) I and IV
D) II and IV

...

Which of the following entities would issue redeemable securities?
Closed-end management investment companies
Open-end management investment companies
REITs
Variable annuity separate accounts
A) II and III
B) I and III
C) I and IV
D) II and IV

...

A married couple opens a new account with a broker/dealer as tenants in common. In explaining the details of the account to the couple, the registered representative would NOT indicate which of the following?
A) Orders may be given by either party
B) In t

...

Which of the following are required before a company may offer new stock through a rights offering?
The additional shares may never increase the outstanding stock beyond the authorized level.
The rights issued in the offering will generally have a lifetim

...

Which of the following practices by a FINRA member firm is a violation of the Conduct Rules?
A) Omission of a nonmaterial fact when recommending an investment
B) Using discretionary authority only within the customer's investment objectives
C) Making unsu

...

Income from which of the following is likely to have the majority of its income subject to taxation only at the federal level?
A) Dividends from a government bond fund
B) Interest from a municipal bond
C) Interest from a corporate long-term bond
D) Divide

...

An investor approaching retirement has amassed a fairly large portfolio of growth securities. He is not particularly risk averse and is interested in generating income for his retirement. He definitely wants to protect his principal, as he would like, eve

...

Under the Code of Procedure, the maximum sanction for a minor rule violation (MRV) by a FINRA member is
a $2,500 fine
a $5,000 fine
a letter of censure
suspension not to exceed 3 months
A) II and III
B) I and III
C) II and IV
D) I and IV

I and III

During the cooling-off period of a new securities registration, a registered representative would be allowed to
A) accept nonbinding indications of interest
B) send prospects sales literature relating to the issue
C) send prospects a preliminary prospectu

...

The Federal Reserve Board may alter which of the following to curb inflation?
Discount rate
Prime rate
Reserve requirement
Broker call loan rate
A) I and II
B) III and IV
C) I and III
D) II and IV

...

Under the USA PATRIOT Act of 2001, financial institutions and their personnel are required to take steps to recognize and prevent money laundering. Which of the following activities might lead a registered representative with a member firm to suspect a cl

...

Your client begins an investment program that has him purchasing $240 of the DCA Balanced Fund each month. This program will result in his average cost per share being lower than the average price per share if
A) the price only trends upward with time, ne

...

The declaration of a dividend is applicable to which of the following securities?
Convertible preferred stock
Short-term municipal notes
Participating preferred stock
Corporate debentures
A) I and IV
B) II and III
C) II and IV
D) I and III

...

Which of the following trades would take place in the secondary market?
A corporate IPO
The sale of common shares on the floor of the NYSE by a specialist
The sale of municipal GO bonds through a selling syndicate
The sale of corporate bonds from one inve

...

Which of the following statements best describes the assumed interest rate of a variable annuity contract?
A) It is the rate that the annuity separate account must earn during the payout phase of the contract to keep monthly payments constant.
B) It rises

...

If a mutual fund distributes 85% of its net investment income to shareholders and uses the rest to purchase new securities, on how much of its net investment income must the fund pay taxes?
A) 15%
B) 85%
C) Only on that portion not taxable to the sharehol

...

What is the highest hypothetical rate of return that may be used when illustrating a variable life contract?
A) 9%
B) 15%
C) 6%
D) 12%

...

A client, age 50, purchases a single-premium variable annuity in the amount of $100,000. Eight years later, when the account is valued at $130,000, the client withdraws $50,000. If the client is in the 25% tax bracket, what is the total tax liability on t

C

Which of the following plans is a nonqualified plan, funded with before-tax dollars?
A) Payroll deduction plan
B) 403(b) plan
C) 401(k) plan
D) Deferred compensation plan

deferred

Which of the following would be considered nonfinancial investment considerations?
Attitude toward risk
Net spendable income after expenses
Total long-term liabilities
Customer's acceptable level of return from an income investment
A) I and IV
B) II and I

1 and 4

Which of the following practices is in accordance with the Conduct Rules?
A) Omitting a material fact of minor importance in making a mutual fund recommendation to a customer.
B) Encouraging a customer to purchase a mutual fund just below a stated breakpo

...

Which of the following investment companies with a portfolio comprised of equity securities liquidates the entire portfolio at some pre-determined date in the future?
A) Blend/core fund
B) Face amount certificate company
C) Principal protected fund
D) Uni

...

If a customer wishes to open a new account but declines to provide all of the financial information the member firm requests, which of the following statements are TRUE?
The member firm may open the account and make recommendations without meeting any oth

...

An investor would be subject to the greatest interest rate risk when purchasing
A) T-bills
B) T-notes
C) T-bonds
D) money market mutual fund shares

...

For which of the following investors are Class B shares generally best suited?
A) Small amount to invest long term
B) Small amount to invest short term
C) Large amount to invest short term
D) Large amount to invest long term

...

Discretionary authority is required for a registered representative to determine
which security to buy or sell
the best time to enter the order
the best price to execute the order
the number of shares
A) I and IV
B) II and III
C) III and IV
D) I and II

...

Which of the following securities transactions would most likely be accomplished through the use of an ADR?
A) 1,000 shares of a domestic company's common stock on the Tokyo Stock Exchange
B) 1,000 shares of a French company's common stock on the Tokyo St

...

Your client, who purchased a bond three years ago on the initial offering, calls you to get a current quote. You respond that the bonds are selling at a slight discount. This means that the
A) market price is somewhat above par value
B) nominal yield is l

...

Rank the following income investments in terms of lowest to highest expected current yield and associated risk.
Mid-term municipal bond fund
Municipal money-market fund
Long-term speculative corporate bond fund
Mid-term corporate bond fund
A) I, II, III,

...

How are disputes regarding delivery and payment for securities transactions settled between FINRA members?
A) Under the provisions of the Code of Arbitration Procedure
B) By the Department of Enforcement
C) By the National Adjudicatory Council
D) By the S

...

Which of the following withdrawal plans would be appropriate for a retiree who wants income from his mutual fund but is concerned about inflation and running out of money?
Fixed-dollar plan
Fixed-percentage plan
Fixed-time plan
A) II only
B) II and III
C)

...

The federal act that regulates securities markets and broker/dealers is the
A) Securities Act of 1933
B) Securities Exchange Act of 1934
C) Uniform Securities Act (USA)
D) National Securities Markets Improvement Act of 1996 (NSMIA)

B securities exchange act 1934

An investor is making payments to fund a combination annuity. His premiums will be divided among which of the following?
The insurance company's guaranteed account
The insurance company's general account
The distributor's investment account
The insurance

C?

Your client has been saving for retirement by investing in a nonqualified variable annuity. The client, who is now age 65, would like to take a lump-sum distribution. The earnings would be taxed as
A) ordinary income
B) short-term gain
C) long-term gain
D

A

ERISA regulations apply to which of the following retirement plans?
ABC Corporation, listed on the NYSE
DEF Corporation, privately held among nine shareholders
City of Detroit employees' retirement benefit plan
FBI employees' retirement benefit plan
A) II

D

If a registered representative wishes to make recommendations to a client, it would be most appropriate to limit those recommendations to
A) primarily to those securities that offer breakpoints at or near the investment level contemplated by the investor

...

A potential customer does not have a Social Security number, and several of his references can give only very sketchy information about him. His bank cannot confirm that he holds an account there, and when asked for a photo ID, he keeps promising to provi

...

Which federal act classifies investment companies as face-amount certificate companies, unit investment trusts, or management companies?
A) Investment Company Act of 1940
B) Securities Exchange Act of 1934
C) Securities Act of 1933
D) Investment Advisers

A

Which of the following communications must be reviewed and approved by a principal before it can be used?
A) A letter to be sent this week to 30 existing customers recommending a new service being offered by the firm
B) A letter to be sent to all customer

A

A member has just hired an individual who was formerly registered with another member firm. When requesting a copy of the terminated person's Form U-5, the former registrant must produce a copy within
A) 5 business days of the request
B) 2 business days o

b

A client expresses the desire to invest in income securities that have minimal credit risk. Which two of the following would be appropriate to recommend?
Treasury bills
Corporate intermediate term notes
Subordinated debentures
General obligation municipal

c

It is recommended that a customer purchase various call options. From this, you would expect that the fund's market outlook is
A) bullish
B) bearish
C) income oriented
D) neutral

a

For a fund to charge the maximum sales load permitted under FINRA rules, which of the following features must be among those made available to shareholders?
Quantity discounts for purchases made by any person
10-day free-look provision
Rights of accumulat

...

An investor has expressed interest in opening a UTMA account for his oldest son, age 11. He wishes to deposit a sizeable block of income securities into the account because he had heard that there are tax advantages in doing so. He intends to liquidate th

a

Individuals with a Series 6 registration, known as a Limited Representative registration, may NOT make sales of which of the following?
A) Closed-end investment company shares that are the subject of a primary offering
B) Closed-end investment company sha

b

Which of the following statements regarding mutual fund shareholders are TRUE?
They have the right to vote to fill a vacancy on the board of directors.
They will be able to redeem as many shares as desired at the next computed NAV.
They purchase shares in

...

A registered representative wishes to conduct a transaction outside the regular business of his FINRA member broker/dealer; this type of transaction is defined by the Conduct Rules as a private securities transaction. Which of the following statements reg

a

The XYZ Fund, an open-end investment company, was founded 9 years ago. If it wishes to show average annual rates of return in an advertisement, it must show returns
A) for 12 months only
B) for 1, 3, 5, and 9 years
C) for 1, 5, and 9 years
D) for each yea

d

You have a client in the 35% income tax bracket who would like to purchase a municipal GO bond being issued at par with a 4% coupon. You think this is a suitable investment for this client and explain that the
A) tax-equivalent yield is always equal to th

b
0.04/ (1-0.35)

The MNO Corporation, a growing company, is entering into negotiations with another, larger firm that is interested in acquiring MNO. Analysts feel that the action, if successful, will benefit MNO in several ways, including reducing manufacturing costs and

...

All of the following statements regarding the Code of Arbitration procedure are correct EXCEPT
A) claims involving customers require that the arbitration panel always be divided equally between industry and nonindustry arbitrators
B) arbitration is the pr

a

The preliminary prospectus for a new offering
A) may be used to solicit orders from customers
B) must carry a legend, printed in red, that declares that a registration statement has been filed with the SEC, but has not yet become effective
C) may not omit

b

Which of the following events would have the effect of weakening the US dollar against foreign currencies?
The FOMC purchases a large number of T-bills
The federal government takes on new debt
Inflation heats up
The FRB lowers the reserve requirement
A) I

...

Which of the following might trigger the filing of a Suspicious Activity Report?
A customer has entered 3 $4,000 transactions on the same day, all for the same security.
The customer has purchased stock of an industrial firm that he thinks will hold stead

...

Absent an extension, a client failing to make full payment in a cash account within the time period required under Regulation T will have her account frozen for
A) 5 business days
B) 30 calendar days
C) 60 calendar days
D) 90 calendar days

D) 90 calendar days

Which of the following phrases describes contractual plans?
A) When the original sale was made, two prospectuses had to be delivered
B) May only be sold by banks
C) Contain binding agreements that require an investor to complete the plan
D) Not subject to

C) Contain binding agreements that require an investor to complete the plan

Which of the following statements about Regulation T payment and regular way settlement are TRUE?
Regulation T payment is mandated by the Federal Reserve
Regulation T payment is requested of the customer by the broker/dealer
Regular way settlement is mand

...

Which of the following is NOT a method of purchasing annuity contracts?
A) Single premium immediate annuity
B) Periodic payment deferred annuity
C) Periodic payment immediate annuity
D) Single premium deferred annuity

C) Periodic payment immediate annuity

Distributions from net investment income paid to shareholders by an investment company meeting the requirements to be a regulated investment company are
A) taxed to the fund but not the individual shareholder
B) taxed as long- or short-term capital gains,

...

Which of the following statements concerning the tax treatment of variable life insurance to the policyholder is NOT correct?
A) Upon the death of the insured, the death benefit is exempt from income tax.
B) During the life of the policy, the earnings gro

...

A client purchasing a variable life insurance policy should expect which of the following?
Level premiums for the life of the policy
A possible reduction in premiums if separate account performance exceeds the policy's AIR
A death benefit that will never

...

Which of the following individuals would NOT be eligible to open a Keogh plan?
A) A self-employed unincorporated plumber
B) The CEO of a publicly traded corporation
C) A CPA who operates as a sole proprietorship
D) A physician who earns income from a heal

...

Your client has a cash balance in his account of $175,000 and securities holdings of $125,000. He asks about SIPC coverage and you explain that his current coverage is for
A) $100,000 securities and $100,000 cash for a total coverage of $200,000
B) his ca

b

One of your customers comes to you with a proposal to purchase shares of a municipal bond fund one of his friends has enthusiastically recommended. The minimum initial investment for this fund is $25,000, and he would like to discuss means with you for bu

...

A registered representative of a FINRA member firm decides to use email to communicate sales ideas to clients and prospects. Which of the following statements correctly describes the treatment of email?
A) All emails are subject to the 3-year recordkeepin

...

You would NOT be permitted to open an account where the owner of record is
A) the executor of an estate
B) a person who the courts have declared to be mentally incompetent
C) a court-appointed guardian
D) a limited partnership

...

Which of the following entities would issue redeemable securities?
Closed-end management investment companies
Open-end management investment companies
REITs
Variable annuity separate accounts
A) II and III
B) I and III
C) I and IV
D) II and IV

...

Which of the following entities would issue redeemable securities?
Closed-end management investment companies
Open-end management investment companies
REITs
Variable annuity separate accounts
A) II and III
B) I and III
C) I and IV
D) II and IV

...

A married couple opens a new account with a broker/dealer as tenants in common. In explaining the details of the account to the couple, the registered representative would NOT indicate which of the following?
A) Orders may be given by either party
B) In t

...

Which of the following are required before a company may offer new stock through a rights offering?
The additional shares may never increase the outstanding stock beyond the authorized level.
The rights issued in the offering will generally have a lifetim

...

Which of the following practices by a FINRA member firm is a violation of the Conduct Rules?
A) Omission of a nonmaterial fact when recommending an investment
B) Using discretionary authority only within the customer's investment objectives
C) Making unsu

...

Income from which of the following is likely to have the majority of its income subject to taxation only at the federal level?
A) Dividends from a government bond fund
B) Interest from a municipal bond
C) Interest from a corporate long-term bond
D) Divide

...

An investor approaching retirement has amassed a fairly large portfolio of growth securities. He is not particularly risk averse and is interested in generating income for his retirement. He definitely wants to protect his principal, as he would like, eve

...

Under the Code of Procedure, the maximum sanction for a minor rule violation (MRV) by a FINRA member is
a $2,500 fine
a $5,000 fine
a letter of censure
suspension not to exceed 3 months
A) II and III
B) I and III
C) II and IV
D) I and IV

I and III

During the cooling-off period of a new securities registration, a registered representative would be allowed to
A) accept nonbinding indications of interest
B) send prospects sales literature relating to the issue
C) send prospects a preliminary prospectu

...

The Federal Reserve Board may alter which of the following to curb inflation?
Discount rate
Prime rate
Reserve requirement
Broker call loan rate
A) I and II
B) III and IV
C) I and III
D) II and IV

...

Under the USA PATRIOT Act of 2001, financial institutions and their personnel are required to take steps to recognize and prevent money laundering. Which of the following activities might lead a registered representative with a member firm to suspect a cl

...

Your client begins an investment program that has him purchasing $240 of the DCA Balanced Fund each month. This program will result in his average cost per share being lower than the average price per share if
A) the price only trends upward with time, ne

...

The declaration of a dividend is applicable to which of the following securities?
Convertible preferred stock
Short-term municipal notes
Participating preferred stock
Corporate debentures
A) I and IV
B) II and III
C) II and IV
D) I and III

...

Which of the following trades would take place in the secondary market?
A corporate IPO
The sale of common shares on the floor of the NYSE by a specialist
The sale of municipal GO bonds through a selling syndicate
The sale of corporate bonds from one inve

...

Which of the following statements best describes the assumed interest rate of a variable annuity contract?
A) It is the rate that the annuity separate account must earn during the payout phase of the contract to keep monthly payments constant.
B) It rises

...

If a mutual fund distributes 85% of its net investment income to shareholders and uses the rest to purchase new securities, on how much of its net investment income must the fund pay taxes?
A) 15%
B) 85%
C) Only on that portion not taxable to the sharehol

...

What is the highest hypothetical rate of return that may be used when illustrating a variable life contract?
A) 9%
B) 15%
C) 6%
D) 12%

...

A client, age 50, purchases a single-premium variable annuity in the amount of $100,000. Eight years later, when the account is valued at $130,000, the client withdraws $50,000. If the client is in the 25% tax bracket, what is the total tax liability on t

C

Which of the following plans is a nonqualified plan, funded with before-tax dollars?
A) Payroll deduction plan
B) 403(b) plan
C) 401(k) plan
D) Deferred compensation plan

deferred

Which of the following would be considered nonfinancial investment considerations?
Attitude toward risk
Net spendable income after expenses
Total long-term liabilities
Customer's acceptable level of return from an income investment
A) I and IV
B) II and I

1 and 4

Which of the following practices is in accordance with the Conduct Rules?
A) Omitting a material fact of minor importance in making a mutual fund recommendation to a customer.
B) Encouraging a customer to purchase a mutual fund just below a stated breakpo

...

Which of the following investment companies with a portfolio comprised of equity securities liquidates the entire portfolio at some pre-determined date in the future?
A) Blend/core fund
B) Face amount certificate company
C) Principal protected fund
D) Uni

...

If a customer wishes to open a new account but declines to provide all of the financial information the member firm requests, which of the following statements are TRUE?
The member firm may open the account and make recommendations without meeting any oth

...

An investor would be subject to the greatest interest rate risk when purchasing
A) T-bills
B) T-notes
C) T-bonds
D) money market mutual fund shares

...

For which of the following investors are Class B shares generally best suited?
A) Small amount to invest long term
B) Small amount to invest short term
C) Large amount to invest short term
D) Large amount to invest long term

...

Discretionary authority is required for a registered representative to determine
which security to buy or sell
the best time to enter the order
the best price to execute the order
the number of shares
A) I and IV
B) II and III
C) III and IV
D) I and II

...

Which of the following securities transactions would most likely be accomplished through the use of an ADR?
A) 1,000 shares of a domestic company's common stock on the Tokyo Stock Exchange
B) 1,000 shares of a French company's common stock on the Tokyo St

...

Your client, who purchased a bond three years ago on the initial offering, calls you to get a current quote. You respond that the bonds are selling at a slight discount. This means that the
A) market price is somewhat above par value
B) nominal yield is l

...

Rank the following income investments in terms of lowest to highest expected current yield and associated risk.
Mid-term municipal bond fund
Municipal money-market fund
Long-term speculative corporate bond fund
Mid-term corporate bond fund
A) I, II, III,

...

How are disputes regarding delivery and payment for securities transactions settled between FINRA members?
A) Under the provisions of the Code of Arbitration Procedure
B) By the Department of Enforcement
C) By the National Adjudicatory Council
D) By the S

...

Which of the following withdrawal plans would be appropriate for a retiree who wants income from his mutual fund but is concerned about inflation and running out of money?
Fixed-dollar plan
Fixed-percentage plan
Fixed-time plan
A) II only
B) II and III
C)

...

The federal act that regulates securities markets and broker/dealers is the
A) Securities Act of 1933
B) Securities Exchange Act of 1934
C) Uniform Securities Act (USA)
D) National Securities Markets Improvement Act of 1996 (NSMIA)

B securities exchange act 1934

An investor is making payments to fund a combination annuity. His premiums will be divided among which of the following?
The insurance company's guaranteed account
The insurance company's general account
The distributor's investment account
The insurance

C?

Your client has been saving for retirement by investing in a nonqualified variable annuity. The client, who is now age 65, would like to take a lump-sum distribution. The earnings would be taxed as
A) ordinary income
B) short-term gain
C) long-term gain
D

A

ERISA regulations apply to which of the following retirement plans?
ABC Corporation, listed on the NYSE
DEF Corporation, privately held among nine shareholders
City of Detroit employees' retirement benefit plan
FBI employees' retirement benefit plan
A) II

D