S66 Study Questions

If an agent of a Broker dealer terminates employment, notice must be given I. Promptly to the administrator II. To the administrator within 30 days III. By the agent only IV. By both the agent and the broker dealer A. I and III B. I and IV C. II and III D. II and IV

B. I and IV

An Investment Adviser is preparing an advertisement. Which of the following would be acceptable? I. A testimonial on radio or TV from a celebrity who is a client of the firm II. Identifying his best investment recommendations for the past 6 months III. Offering to provide the firm's investment recommendations for the past 12 months IV. Promoting his system of charts and formulas while mentioning their limitations and difficulties A. II and III B. I and II C. I, III, and IV D. III and IV

C. I, III, and IV

A Registered Investment Advisor uses a solicitor to refer clients and pays the solicitor for each client referred. Under the Uniform Securities Act of 1956 as amended, the solicitor: A. Must register as an agent in the state B. Is not required to register as an agent in the state C. Must register as an investment advisor representative in the State D. Is not required to register as an investment advisor representative in the State

C. Must register as an investment advisor representative in the State

All of the following are exempt securities under the Uniform Securities Act EXCEPT A. Treasury Bonds B. Municipal Bonds C. Preferred Stock D. U.S. Government Agency Bonds

C. Preferred Stock

You have a client who is not covered under an employer sponsored retirement plan and has been contributing the maximum in her traditional IRA. She has just informed you that she won $1 Million in the lottery, plans to continue working, and would like to continue to contribute to her IRA. Which of the following statements is correct? A. She may continue to contribute, but her contribution will not be tax deductible B. She may continue to contribute, but only a portion of her contribution will be tax deductible C. Her income for the year exceeds the allowable limit for a contribution D. She may continue to contribute and her contribution will be tax deductible

D. She may continue to contribute and her contribution will be tax deductible

An IAR has a customer with $1 million under management. The customer is experiencing a cash flow shortfall but does not want to liquidate part of the portfolio because it is performing so well. The client calls the IAR and asks for a short-term loan of $25,000. What should the IAR do? A. The IAR should lend the customer the money because the client has sufficient assets under management to ensure that the loan will be repaid B. The IAR should arrange for the customer to rehypothecate a sufficient amount of securities to a bank to secure the loan C. The IAR should co-sign a loan with the client at a bank D. The IAR should refuse the client's request

D. The IAR should refuse the clients request