Green Light 66 Exam Questions with Answers
Which of the following statements best describes an equity-indexed annuity?
It is a variable annuity that tracks a major index
It is a variable annuity that guarantees a minimum return
It is a fixed annuity that mirrors the performance of a designat...
Green Light 66 Exam Questions
with Answers
Which of the following statements best describes an equity-indexed annuity?
It is a variable annuity that tracks a major index
It is a variable annuity that guarantees a minimum return
It is a fixed annuity that mirrors the performance of a designated index
It is a fixed annuity that offers the potential for greater returns - Answer-It is a fixed
annuity that offers the potential for greater returns
One of the advantages of investing in an oil limited partnership exploratory program is
that the program:
Provides immediate cash flow and minimal risk
Offers investors a depreciation allowance to offset gains
Allows investors to reduce their taxable income
Will have a predictable income stream - Answer-Allows investors to reduce their
taxable income
An investment adviser who recommends a hedge fund to a qualified investor must
confirm that the investor meets the financial test. The minimum net worth requirement
is:
$750,000
$1,000,000
$1,500,000
$2,000,000 - Answer-1,000,000
AAA Advisory Services is a registered investment adviser located in State A. The
minimum financial requirement for an investment adviser in State A is a net worth of
$70,000. The firm would like to open an office and provide advisory services in State B
where the minimum net worth requirement is $80,000. What action should the firm take
in order to open its office in State B?
Increase its net worth by another $10,000
Increase its net worth to $150,000 to cover both states
Leave its current net worth as is
Post a $10,000 bond to cover the additional requirement in State B - Answer-Leave its
current net worth as is
In which TWO of the following cases will the Uniform Securities Act exempt an
investment adviser from sending a written disclosure document to clients?
The firm advises only investment companies.
An investment adviser charges $250 per year for financial news articles that are
available online to subscribers.
An investment adviser has no office in that state.
, The investment advisory component of a broker-dealer only advises institutional
investors.
I and II
I and IV
II and III
II and IV - Answer-I and II
When forming a limited partnership, which of the following documents is filed with the
state in which the partnership operates? - Answer-certificate of limited partnership
If an agent of a broker-dealer is granted a durable power of attorney, which of the
following statements are TRUE?
1)The broker-dealer is considered to have discretion over the client's account.
2)The broker-dealer is considered to have custody of the client assets.
3)The client must be an institution.
4)The agent has the authority to manage the grantor's finances if that person becomes
incapacitated. - Answer-I, II, IV
The risk-adjusted return of an investment is most closely associated with: - Answer-
alpha
Which of the following designations are acceptable on a business card?
1)RIA for an investment advisory firm registered with the SEC
2)RIA for an investment advisory firm registered with a state Administrator
3)IAR for an investment adviser representative who has passed the appropriate
qualifying exam - Answer-None of the above
Which of the following choices is/are disadvantage(s) of investing in a C Corporation?
1)Shareholders are taxed on dividends received.
2)The corporation is taxed on its income.
3)Shareholders may not deduct their share of the corporation's losses on their personal
tax return.
4)Shareholders are paid last if the corporation liquidates. - Answer-all
An IAR is comparing the advantages and disadvantages of an S Corporation and a
limited partnership for a client. What is one advantage of investing in an S Corporation
that is not found in a limited partnership?
1)There is unlimited personal liability
2)An S Corporation pays higher dividends
3)An S Corporation allows for an unlimited number of shareholders
4)Investors have more control over management decisions - Answer-4)
Which of the following factors would be the best measure of a bond's volatility? -
Answer-Duration
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