Unit 5

Which of the following would not be considered an agricultural commodity

Aluminum

Investing in commodities could involve investing in any of these except

Consumer durables

Flow through is one of the features of

Direct participation plans

Your customer is asking if either exchange traded funds or exchange traded notes might be suitable investments for his portfolio. The customer makes several statements regarding his understanding of the products but only one is accurate which is it

ETNs are issued by financial institutions therfore i should be concerned about the credit worthiness of the issuer

The price of which of the following commodities is most likely to be impacted by weather

Orange juice

A high net worth client of yours invested 250,000 into an oil and gas limited partnership drilling program for which she received a 10% interest in the project. Unfortunately after two years of drilling without success the project was foreclosed with outstanding debt of $4 million. Your client is liable to the partnerships creditors for

$0

One of your clients approaches you and is looking for an investment that will provide ready marketability and income. Which of the following would be least appropriate recommendation

A limited parter ship in rental real estate

For a customer interested in buying an inverse ETF tracking the performance of the standard and poors 500 index which of the following market views would make that purchase most inappropriate

Bullish

A client was reading an offering document for an oil and gas drilling limited partnership program and noticed that one of the features was flow through benefits. How would you explain this

Rather than being a separate taxable entity, the programs income or losses pass through directly to the investors

Which of the following is NOT a feature of owning a limited partnership

Tax free income

Your customer is interested in a leveraged fund and makes the following statements about leveraged funds to you. All of the statements regarding leveraged funds are true except

There are no unusual risks associated with these funds other than those one would incur with any index tracking fund

A client wishing to invest in precious metals could consider each of the following except

Lead

In general an investor wishing to gain economic exposure to commodities would find it easiest to do so by

investing in futures contracts

In a limited partnership program which partners manage the partnerships day to day operations and incur unlimited personal liability for the partnerships debts?

The general partners