TestGeek Midterm Series 65 Questions || with 100% Accurate Solutions.
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Course
TestGeek Series 65
Institution
TestGeek Series 65
What is a requirement of a Joint Tentants By Entirety account?
A: Account owners must be spouses
B. Account owners must be non-spouses
C. Account owners must be unrelated
D. Account owners must be engaged to be married correct answers Account owners must be spouses
A tenancy by the enti...
TestGeek Midterm Series 65 Questions || with 100%
Accurate Solutions.
What is a requirement of a Joint Tentants By Entirety account?
A: Account owners must be spouses
B. Account owners must be non-spouses
C. Account owners must be unrelated
D. Account owners must be engaged to be married correct answers Account owners must be
spouses
A tenancy by the entirety is a form of joint ownership that can only exist btwn a husband and
wife
Which life insurance policy has a fixed premium schedule, a guaranteed death benefit and a
separate account?
A: Whole Life
B. Variable Life
C. Variable Universal Life
D. Variable Annuity correct answers Variable Life
Variable life has a guaranteed minimum death benefit but a variable cash value due to a separate
account
Which business entity is easy to establish and has relatively low start-up costs?
A: Sole Proprietorship
B. LLC
C. S Corp
D. General Partnership correct answers Sole Proprietorship
Sole proprietors have the least requirements for formation
How many investment choices are required as per ERISA guidelines?
A. 3, unless otherwise specified to have less
B. no less than 5
C. at least 6
D. a minimum of 3 correct answers A minimum of 3
According to ERISA, 3 investment options must be provided to participants
What type of order is filled immediately at the current market price?
,A: Market Order
B. Limit Order
C. Stop Limit Order
D. Stop Market Order correct answers Market Order
Market orders are executed immediately
Under the U.S.A., the definition of a broker dealer?
A. An individual that accepts or places orders for customers
B. A person that engages in securities transactions for the benefit of others or themselves
C. In the business of providing investment advice
D. A person that engages in any transaction for the benefit others or themselves correct answers
A person that engages in securities transactions for the benefit of others or themselves
Broker dealers are "persons" that engage in security transactions for either a commission or a
markup
An investor received an 8% return last year on her investment. If her net present value is equal to
1 and the CPI increased by 3%, what was her real return?
A. Taking into consideration the inflation rate, her return will be 11%
B. Her actual return of 8%
C. Since the NPV is 1, her return would be 1%
D. Since the inflation rate is 3%, her real return would be 5% correct answers Since the inflation
rate is 3%, her real return would be 5%
Real return is also known as inflation adjusted return
Which of the following is the definition of a Market Maker?
A. B/D that buys or sells listed securities on an exchange
B. A NASDAQ subscriber
C. B/D that buys or sells unlisted securities OTC
D. an underwriter correct answers Broker dealer that buys or sells unlisted securities OTC
Market makers operate in the OTC market. Specialists (or DMM) operate on an exchange
Which type of option may be exercised at any time before the expiration date?
A. Asian
B. European
C. American
D. Australian correct answers American
, American options may be exercised at any time. European options can be exercised only at
expiration
Under the U.S.A., state registered IA's are required to maintain books and records
A. 5yr with 2yr readily accessible
B. 3yr with 2yr readily accessible
C. 6yr with 3yr at the home office
D. 9yr with 5yr at the home office correct answers 5 yr w/ the 2 yr readily accessible
The 5-yr period will run from the end of the fiscal yr. (If the IA ends the business, records must
be maintained for 3 yrs)
The statute of limitations for civil penalties under the U.S.A. is
A. 2 years from occurrence/3 years from discovery
B. 3 years from occurrence/2 years from discovery
C. 5 years from occurrence/2 years from discovery
D. There is no limitation on civil penalties correct answers 3 yrs from occurrence/2 yrs from
discovery
Whichever date occurs first - 3 yrs from the trade date or 2 yrs from when the illegal trade is
discovered
The right of rescission allows for the recovery of
A. All monies + interest + court costs - dividends or interest
B. Interest and court costs
C. Dividends and interest
D. All monies + dividends and interest correct answers All monies + interest + court costs -
dividends or interest
Rescission allows for the recovery of all invested money plus costs. It excludes monies earned
from the investment
Acting on information from within the organization is relying on what form of Efficient Market
Hypothesis?
A. Semi-weak
B. Weak
C. Semi-strong
D. strong correct answers Strong
Knowledge based on information known to insiders within the company
Which quantitative measure indicates diversification?
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