series 6 simulated
which of the following statements about Maintaining Qualifications Program (MQP) is true? a. it allows participants to requalify for registration without sitting for an exam b. it does not require continuing education c. continuing education must be completed every 2 years d. it requires participants to take the related qualification exam within 2 years of registration termination
A
an investment in precious metals fund would provide: a. income and growth b. a hedge against inflation c. capital appreciation d. a steady stream of income
B
which of the following is a measure of a company's ability to pay interest expenses? a. debt to equity ratio b. interest coverage ratio c. net profit margin d. bond ratio
B
a public school teacher, age 61, has placed money into a tax-qualified TSA over the past 10 years. The teacher contributed $20,000 and the value of the annuity is now $30,000. If the teacher withdraws $12,000 today, what will be the tax implication if the teacher is in a 25% tax bracket? a. $2500 b. $3000 c. $5000 d. $7500
B.
an investor's mutual fund account is currently worth $48,000. The sales charge was 8.5%. if she withdraws 6% per year, her monthly payments will be: a. $219.60 b. $240 c. indeterminate; payment will fluctuate with market. d. none of the above, withdrawal penalties may apply
B. this is an example of fixed-percentage payments, where an investor requests that a fixed percentage of shares be liquidated at fixed interval. The 8.5% sales charge has no effect on the amount the investor receives in monthly payments $48,000 x 6% = $2,880 annually $2,880/12= $240 monthly
after a customer's brokerage account is closed, the account information must be maintained for how many years? a. 2 years b. 4 years c. 6 years d. indefinitely
C
investors can be granted an extension of time by a. SEC b. their brokerage firm c. FINRA and the transacting exchange d. All of the above
C
the cash value of a variable life insurance company must be calculated a. daily b. weekly c. monthly d. quarterly
C
all of the following regarding preferred stock dividends are correct EXCEPT: a. the dividend is based on par value b. the dividend is interest rate sensitive c. the dividend is fixed or stated d. like common stock dividends, the dividend may change
D
when used in retail communication, a bond mutual fund volatility rating must do which of the following? a. at the very least, be current to the end of the most recent calendar year b. show the history of the fund's volatility ratings for the previous 4 quarters c. contain a 5-year comparison with an appropriate bond index d. be the most current rating available
D
which type of investment companies do not charge a management fee? a. open-end investment companies b. closed-end investment companies c. face amount certificates d. unit investment trusts
D
which of the following statements is true regarding SIMPLE plans? a. the employees cannot contribute to the plan b. contributions and earnings are tax-deferred until funds are withdrawn c. the employer cannot contribute to the plan d. the employer can contribute up to 5% of the employee's annual compensation
b
All of the following statement about prime brokerage accounts are true except? a. account trades must be executed by only one broker/dealer b. they are subject to higher net capital requirements c. the prime broker is responsible for safekeeping and bookkeeping services d. these are typically accounts for wealthy investors
A
when making mutual fund recommendations a registered representative should: I. concentrate on short-term trends to highlight investment opportunities II. compare standardized yields of similar funds III. explain the fund's expense ratio IV. consider the total return of the fund after sales charges and expenses a. III only b. I and IV only c. II, III, and IV only d. I, II, III, and IV
C
a customer wants to exchange a deferred variable annuity, but exchanged one 18 months ago. what is the registered representative's duty in this situation? a. note that the customer's account had had a deferred variable annuity exchange within the preceding 36 months b. go through with the exchange and offer to spread out surrender charges c. warn the client that there will be a double penalty for exchanging an annuity twice within 24 months d. refuse to go through with the exchange, citing surrender charges
A
an investor and her spouse's joint income was over $300,000 for the last 2 years, and they expect to earn about the same in the current year. What type of an investor does this describe? a. accredited investor b. qualified institutional buyer c. institutional investor d. qualified investor
A
fund net redemptions over a period of time may cause all of the following EXCEPT: a. The NAV per share to drop b. the total NAV of the fund to drop c. the fund to liquidate portfolio securities they wanted to hold d. a capital gain tax implication to redeeming investors
A
the definition of a regulated investment company is: a. one that is exempt from taxes if it passes through 90% or more of its net investment income to shareholders b. one that is regulated under the investment company act of 1940 c. one regulated by FINRA d. one that is diversified, so that 75% of its assets are invested, but not more than 5% in any 1 company and does not own more than 10% of the voting stock of any 1 company
A
In pursuing any investigation, complaint, or examination, FINRA may require a member or an associated person to I. provide information in oral, written or electronic form II. appear and testify under oath III. make available books, records and accounts for inspection IV. provide copies of books, records and accounts a. II, III and IV b. I, II, III and IV c. I and II only d. I, III and IV
B
two sisters are owners of an account in which one owns 60% of the account, while the other owns 40%. which statement about this account is true? a. if either sister dies, the remaining interest immediately passes to the other sister b. if either sister dies, the remaining interest must go through the probate process c. neither sister has an undivided interest in the account d. there is no required documentation upon death
B
Broker/Dealers (B/Ds) are held to higher disclosure standards with regard to penny stocks. what information must be disclosed to penny stock clients? a. number of shares the quote is good for, and average trading volume of the penny stock, dealer bid/offer if no inside bid/offer is available b. number of shares the quote is good for, average trading volume of the penny stock, and the broker's experience in trading penny stocks c. inside bid and offer quotation, number of shares the quote is good for, and average trading volume of the penny stock d. inside bid and offer quotation, number of shares the quote is good for, and the dealer's bid/offer if no inside bid/offer quotation is available
D
Under Reg S-P a broker/dealer's procedures to safeguard its customers' personally identifiable information must provide for each of the following EXCEPT a. the customer must be given the opportunity to opt out of any disclosure of PII to nonaffiliated parties b. the broker/dealer is not required to give the customer an opt-out option regarding sharing of PII with it's affiliates c. the broker/dealer's responsibility to protect customers' PII extends to the personal equipment of its associated persons d. a notice to the customer describing the firm's privacy procedures must be sent with the first statement of activity in the account
D
upon termination of employment, an employee's funds from a 457(b) plan: a. may be transferred to an IRA and still retain the exemption from the 10% penalty for early withdrawal b. cannot be transferred to a qualified plan c. can only be transferred to another 457(b) plan d. may be transferred into an IRA. Once transferred the funds become subject to a 10% penalty for early withdrawal
D
when a company splits their stock, who maintains a record of those shareholders eligible to receive the additional shares? a. issuer b. custodian c. investment banker d. transfer agent
D