美国寿险经纪执照考试S6_2 Question.pdf

QBank Printable Exams Practice Test 08 29 2012 Question 1 6773 Distributions from a profit sharing plan made to an employee after retirement are from the A profits on the plan s assets only B amount allocated to the individual s account during the employee s participation in the plan only C interest accumulating on the plan s assets D amount allocated to the individual s account plus accumulated earnings during the employee s participation in the plan Question 2 7013 An investor traveling abroad receives communication from his broker dealer that a stock he has been following has moved to a price of 17 per share including all commissions and expenses The investor wishes to buy 100 shares at that price He executes an international wire transfer for the equivalent of 1 700 in euros 2 600 USD and sends it to his broker dealer with an order to buy What action is called for by the broker dealer A This transaction need not be reported B The broker dealer must report wire transfers in excess of 2 500 on FinCEN Form 104 C Because the wire transfer is received from abroad the broker dealer may not accept it D The transaction should be reported within 15 days to the Office of Foreign Assets Control OFAC Question 3 6453 The KPF Growth Fund charges no redemption fee An investor brings 200 shares to your firm for redemption The next quote on the fund is 9 15 bid 10 00 ask If liquidated by the firm without charge he would receive for his shares A 915 B 1 000 C 1 830 D 2 000 Question 4 6588 In July a customer invested 10 000 in the ABC Mutual Fund In December of the same year ABC distributed a capital gain on securities it had held for five years In May of the next year the customer decided to redeem his shares for a capital gain How are both of the capital gains treated for taxation purposes The capital gain distribution is treated as long term I The capital gain from redemption is treated as long term II The capital gain from redemption is treated as short term III The capital gain distribution is treated as short term IV A I and II B III and IV C II and IV D I and III Question 5 6102 When a customer wishes to open an account as guardian you would ask for A a signed customer account card credit agreement and loan consent B a limited power of attorney C a full power of attorney D a copy of the court order and other guardianship papers 1 of 198 29 2012 11 00 AM Question 6 5916 Which of the following best describes book entry A The transfer of ownership is entered on the books of the clearing agency B The transfer of ownership is entered on the books of the SRO C The transfer of ownership is entered only on the books of the buyer D The transfer of ownership is entered on the books of the issuer or the issuer s transfer agent Question 7 295671 A grandparent is interested in making a contribution to an ESA Contributions may be made until the beneficiary s birthday at age A 18 years B 30 years C 19 years D 21 years Question 8 6310 What assets to debt ratio must an open end investment company maintain A 1 to 3 B 2 to 1 C 1 to 2 D 3 to 1 Question 9 7071 A customer has filed a serious complaint against your firm and is threatening to take the firm to court When informed that he has signed a predispute arbitration agreement he demands to see a copy of it How long does your firm have to supply the customer with a copy of the signed agreement upon receipt of his request A Seven business days B Three business days C Ten business days D Five business days Question 10 7246 An investor purchased 1 000 shares of the KLP Corporation common stock KLP was late in introducing a new product and lost half of its market to a competitor resulting in the investor s shares losing substantial value This is an example of A reinvestment risk B business risk C legislative risk D credit risk Question 11 6660 Which of the following statements could legally appear in mutual fund advertising or sales literature A Our managers are dedicated to giving you the very best service B Our growth fund net asset value will increase faster than the market in general C Our management is unequaled in the investment industry D The fund never yielded less than 8 and will continue at that rate in the future Question 12 295832 2 of 198 29 2012 11 00 AM Which of the following are characteristics of exchange traded funds ETFs They are redeemable securities I They are priced by supply and demand II They are designed to track an index III They try to diversify within a particular industry IV A I and III B II and III C II and IV D I and IV Question 13 7090 Sales literature for a mutual fund must A be preceded or accompanied by a prospectus B contain a warning that SEC supervision of the company does not guarantee protection against a decrease in the shares market value C promise delivery of a prospectus when the shares are delivered to the purchaser D contain the statement A prospectus relating to these securities is available upon request Question 14 6059 Which of the following interest rates is determined by a vote rather than market forces A Broker call loan rate B Discount rate C Prime rate D Federal funds rate Question 15 6902 Which of the following describe premiums for a scheduled payment variable life policy Fixed as to the premium amount I Variable as to the premium amount depending on the cash value in the account II Fixed as to time of payment III Variable as to time of payment IV A II and IV B I and III C I and IV D II and III Question 16 7247 You are considering investments for a new client who informs you that she hopes to purchase a new home in the upcoming year Which of the following would be most suitable Long term corporate bonds I Treasury bills II Growth funds III Money market fund IV A II and IV B II and III C I and IV D I and III Question 17 7214 3 of 198 29 2012 11 00 AM A member firm wants to give a gift to a registered representative of another member firm Which of the following would be applicable to the gift A This is permitted only if the gift does not exceed 100 and the registered representative s employer consents B This is permitted only if the gift does not exceed 100 C This is permitted only if the gift does not exceed 150 D This is permitted only if the gift does not exceed 100 and FINRA s approval is obtained Question 18 6211 ABC stock is quoted at 67 75 bid 67 85 ask If an investor wishes to purchase one round lot from the broker dealer excluding commissions the investor would pay A 6 785 B 677 50 C 6 775 D 678 50 Question 19 7138 Your firm has prepared some institutional sales material on several of the securities it deals in and has provided it to three mutual funds One of the fund managers calls your firm to ask for some extra copies of the material because he would like to send it to some of his investor friends This request A may be complied with as long as the copyright notice on the sales material is prominently displayed B may be complied with as long as the adviser will not profit from any orders that result C may not be complied with because there is no guarantee that time sensitive information will still be valid by the time the fund manager s friends receive it D may not be complied with if your firm wishes to continue to treat the material as institutional sales literature Question 20 6116 If a customer wishes to open a cash account in his name only and allow a third party to make trading decisions but not withdraw cash and securities he must instruct his broker dealer to open a A cash account B margin account C cash account with full power of attorney D cash account with limited power of attorney Question 21 6361 The transfer agent of a mutual fund redeems shares I sells shares of stock in the fund s portfolio II holds custody of fund securities III handles name changes of mutual fund share ownership IV A I and III B I and IV C II and IV D II and III Question 22 7308 Loss of purchasing power has the greatest impact on which of the following investor profiles A A 35 year old investor who owns a portfolio of high yield corporate bonds B An elderly person living on a fixed retirement income with little savings 4 of 198 29 2012 11 00 AM C A young married couple who have a comfortable income and have just purchased their dream home D An investor in his 20s who spends all of his paycheck on video games Question 23 6709 When a customer who is at least 59 withdraws money from a traditional IRA that has been funded totally with deductible contributions A the entire amount withdrawn is subject to taxation at ordinary income tax rates B unless qualifying for an exception the entire amount withdrawn is subject to taxation at ordinary income tax rates with an additional 10 penalty C the basis is taxed as ordinary income the gains are taxed at the capital gains rate D the withdrawal causes the entire IRA balance to be subject to taxation at ordinary income tax rates Question 24 7158 ALFA Securities a FINRA member firm wants to buy shares in ATF Mutual Fund from the fund s sponsor at a discount This arrangement is possible if ATF s sponsor A is not a FINRA member B agrees to pay out the full sales charge as concession C is also a FINRA member and there is a sales agreement between ALFA and the sponsor D although not a FINRA member has a sales agreement with ALFA Securities Question 25 6976 If a representative possesses material inside information about a publicly traded company under which of the following circumstances may he communicate this information to a customer A If the customer enters an unsolicited order B If the information will be made public the next day C If the customer knows that it is inside information D Under no circumstances Question 26 7127 If a registered representative wishes to distribute a copy of a national magazine article about the GAON Mutual Fund which of the following statements is CORRECT Because this material is already in the public domain it is excluded from the rules on communication with the public I This material meets the definition of an independently prepared reprint II The article may be used without prior approval of a principal of the member firm III The article may not be sent without prior or concurrent delivery of the GAON Fund prospectus IV A II and IV B I and III C II and III D I and IV Question 27 295853 Your customer has redeemed some of his mutual fund shares but finds that the price he received is somewhat less than was reported as the NAV of his fund in the newspaper the next day The most likely reason for this is which of the following A A contingent deferred sales charge B Churning of the part of his registered representative C A level load sales charge D A front end load Question 28 295809 5 of 198 29 2012 11 00 AM A client invests 10 000 into a large cap growth fund Five years later the account value is 15 000 At the same time the CPI has increased 25 In terms of constant real dollars the client s account is worth A approximately 1 250 B more than 10 000 but less than 15 000 C more than 15 000 D less than 10 000 Question 29 295797 The Investment Company Act of 1940 places a number of restrictions upon the portfolio composition of a money market mutual fund Included in those restrictions is the requirement that other than securities issued or guaranteed by the U S government the maximum percentage of the fund s assets that may be invested in the securities of any single issuer is A 10 B 25 C 5 D 2 Question 30 6841 In a variable annuity contract the assumed interest rate AIR refers to A the rate used in the prospectus to show the potential growth of the contract B the rate at which purchases are required in the separate account to qualify for special tax treatment C the rate of return needed to maintain the annuity payments at a constant level D the amount of payments required by the investor to maintain the contract Question 31 6655 Which of the following mutual fund share classes are specially suited to investors that have long term objectives Class A shares for investors that have a large amount to invest I Class B shares for investors that have a small amount to invest II Class A shares for investors that have a small amount to invest III Class C shares IV A III and IV B I and III C II and IV D I and II Question 32 5859 In general a corporation assumes the least risk when it obtains funds from A sale of debentures B a commercial bank C sale of income bonds D sale of preferred stock Question 33 6851 Which of the following statements about deferred variable annuities are TRUE Purchase payments can be either lump sum or periodic I Contract holders are guaranteed a rate of return II Earnings accumulate tax deferred during the accumulation period III Holders receive payouts during the accumulation period IV A I and III 6 of 198 29 2012 11 00 AM B I and II C III and IV D II and IV Question 34 6604 If an investor has requested a withdrawal plan from his mutual fund and currently receives 600 per month this is an example of what type of plan A Fixed dollar periodic withdrawal B Fixed share periodic withdrawal C Fixed percentage withdrawal D Contractual Question 35 6948 Wall Street closely monitors Federal Open Market Committee FOMC activities because of its effect on all of the following EXCEPT A bank excess reserves B income tax rates C money supply D interest rates Question 36 6638 After a mutual fund s tenth year performance statistics must show results for each of the following periods EXCEPT A one year B ten years C three years D five years Question 37 5891 Which of the following factors is least important in rating a bond A Stability of the issuer s cash flows B Asset protection available to the issuer C Amount and composition of issuer s existing debt D Bond s coupon Question 38 6772 Don is a young man just beginning his career as an engineer at the ABC Corporation He doesn t have a lot of financial obligations and he d like to start saving for his retirement Which of the following retirement plans would favor his situation the most A 401 k plan B Keogh plan C 403 b plan D 529 plan Question 39 6339 Provided it has shareholder approval an open end investment company may do all of the following EXCEPT A lend money B lend securities 7 of 198 29 2012 11 00 AM C engage in short sales of securities D borrow money Question 40 295810 The main difference between hedge funds and funds of hedge funds is that A hedge funds have a lower initial investment B smaller investors may invest in funds of hedge funds C funds of hedge funds are not required to register with the SEC D hedge funds are considered a more conservative investment Question 41 6817 A 78 year old retiree had a 100 000 CD maturing and was dissatisfied with current yields on new CDs Aside from Social Security and a small monthly pension the 100 000 is his total potential source of income The registered representative recommended investing the funds in a single premium immediate variable annuity allocating funds to the separate account as follows 10 000 Medical Technology 40 000 High Yield Corporate Bond and 50 000 Growth Income The registered representative s recommendation is A unsuitable because of the lack of diversification of the portfolio choices B suitable provided the customer agrees with the recommendation C suitable because the portfolio mix seems likely to offer increased income to the customer D unsuitable because of the aggressive nature of the portfolio choices Question 42 6716 Which of the following statements regarding Coverdell Education Savings Accounts are TRUE After tax contributions of up to an indexed maximum per student per year are allowed I Contributions may not be made for students past their 18th birthday II If the account value is not used for educational purposes it can be rolled over into a traditional IRA III Distributions are always taxable IV A III and IV B I and III C II and IV D I and II Question 43 6671 Your customer has his own sole proprietorship He and his wife are the only full time employees He would like to start a retirement plan for his business but would like to have access to the funds in the account by means of loans You would recommend A a solo 401 k plan B a Roth IRA C a traditional IRA D a Keogh plan Question 44 6351 The noninterested members of a mutual fund s board of directors could include A a director whose spouse is an officer of the custodian bank B a director whose only involvement with the company is his role as a member of the board C a director who is also president of the principal underwriter D a director who is the attorney for the investment adviser Question 45 6190 8 of 198 29 2012 11 00 AM An officer of a broker dealer firm would be categorized as a restricted person if he attempted to purchase A a new issue B a municipal bond in a state where he does not reside C call options on a stock he believed was going down in price D closed end funds on the secondary market Question 46 5999 Which of the following securities is issued at par A Treasury bills B Treasury receipts C Treasury notes D Treasury STRIPS Question 47 295672 Which of these is TRUE about an ESA A Contributions are tax deductible B The beneficiary can t move out of state C Withdrawals are tax free if used for qualifying expenses D Contributions may only be made by an immediate family member of the beneficiary Question 48 295857 Which of the following is a customer probably referring to when he speaks of safety in investments A The need for current income B Preservation of capital C The need for long term capital growth D Tax advantages Question 49 6093 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 other criteria I The member firm may open the account if it has determined by other means that the customer has the financial resources to carry the account