Series 65 study 2 || with 100% Errorless Solutions.
Which of the following is the minimum denomination of Treasury notes that can be purchased
by an investor?
A. $50
B. $100
C. $1,000
D. $10,000 correct answers B.
Which of the following statements describes a typical whole life insurance policy?
(1) The premiums must be paid for the insured's entire lifetime, or for a period of at least ten
years.
(2) The cash value cannot be used as collateral for a loan.
(3) The difference between a policy's face amount and the reserve must be greater than the cash
surrender value at all times.
(4) The cash value must equal the face amount of coverage by the end of the mortality table.
A. (4) only
B. (2) and (3) only
C. (1), (2), and (3) only
D. All of the above are correct. correct answers A.
If an RIA has between __________ and __________ of assets under management, the RIA may
register with either the applicable state(s) where the RIA maintains clients, or the SEC, at the
RIA's discretion.
A. $10 million, $100 million
B. $25 million, $100 million
C. $50 million, $150 million
D. $100 million, $200 million correct answers B.
Which of the following are correct regarding the role of a trustee?
(1) A trustee is the legal owner of trust property.
(2) A trustee has a fiduciary duty to income beneficiaries only.
(3) A trustee must act at all times for the exclusive benefit of the beneficiaries or he or she may
incur a legal liability.
(4) A trustee has a fiduciary duty to remainder beneficiaries only.
A. (1) and (3) only
B. (2) and (4) only
C. (1), (2), and (3) only
D. (1), (3), and (4) only correct answers A.
,With certain exceptions, which of the following acts requires that firms or sole practitioners
compensated for advising others about securities investments must register with the SEC and
conform to regulations designed to protect investors?
A. Securities Act of 1933
B. Securities Exchange Act of 1934
C. Investment Advisers Act of 1940
D. Investment Company Act of 1940 correct answers C.
Assume that an investor's portfolio has a realized return of 16%. The realized return of the S&P
500 for the same time period is 18%, and the risk-free rate is 6%. If the beta of the portfolio is
0.75, what is the portfolio's alpha?
A. -0.02
B. -0.01
C. +0.01
D. +0.02 correct answers C.
Which of the following accurately describes a complex trust?
A. It's a trust with more than one beneficiary.
B. It's a trust that may distribute income annually.
C. It's a trust that reverts back to the grantor's estate at death.
D. It's a trust that is required to distribute all of its income annually. correct answers B.
Kappa Inc., a growing IT company based in California, plans to launch its IPO this year. The
IPO will be regulated by which of the following laws?
A. Securities Act of 1933
B. Securities Act of 1934
C. Investment Company Act of 1940
D. SIPC of 1970 correct answers A.
Which of the following are characteristics of Series EE bonds?
(1) They may be purchased for an amount equal to one-half of face value.
(2) They may be purchased for a minimum price of $25 for a $50 bond.
(3) The U.S. Treasury guarantees that an EE bond's value will double after 10 years.
(4) They may be purchased for a maximum price of $5,000 for a $10,000 bond.
A. (1) only
B. (1), (2), and (4) only
C. (2), (3), and (4) only
D. All of the above are correct. correct answers B.
,All but which of the following are correct regarding "notice filing" by an RIA?
A. Notice filing is required for an RIA to maintain its compliant registration status.
B. While most jurisdictions will allow for a "de minimis" number of clients before requiring
notice filing, some jurisdictions may require notice filing upon taking on the first client in that
jurisdiction.
C. Having a "place of business," as defined by applicable regulatory statutes, does not require
notice filing unless the firm has 5 or more clients in the jurisdiction.
D. All of the above are correct. correct answers C.
In order to be eligible to make a traditional IRA contribution, an individual must be younger than
age __________ by the end of the taxable year.
A. 59 ½
B. 65
C. 70 ½
D. 71 correct answers C.
Which of the following techniques can be used to reduce an individual's gross estate, and
therefore, reduce estate taxes?
A. Family limited partnership
B. Payable on death account
C. Living trust
D. Totten trust correct answers A.
Which of the following is a characteristic of a variable life insurance policy?
A. Premiums and death benefits are flexible.
B. A minimum death benefit is guaranteed.
C. It is made up of increasing units of term insurance and a guaranteed cash value.
D. The death benefit is linked to the performance of the S&P 500 only. correct answers B.
Which of the following rules establishes standards for the content, approval, recordkeeping, and
filing of communications with FINRA, and must be followed by firms when communicating
with the public, including communications with retail and institutional investors?
A. FINRA Rule 2111
B. FINRA Rule 2210
C. FINRA Rule 3240
D. FINRA Rule 3270 correct answers B.
Assume the next dividend for Epsilon stock will be $3 per share, and investors require a 12%
rate of return to purchase the stock. If the dividend for Epsilon stock increases by 4% each year,
what price should the stock be selling for today?
, A. $22.50 per share
B. $27.50 per share
C. $32.50 per share
D. $37.50 per share correct answers D.
In which of the following does the donor transfer income-producing property to a reversionary
trust, and then directs the trust income to be transferred to a qualified charity initially for a period
of time not to exceed twenty years?
A. Charitable lead trust
B. Charitable remainder trust
C. Grantor retained trust
D. Pooled income fund correct answers A.
All but which of the following are correct regarding a "not held" order?
A. It applies mainly to international equities.
B. It is a market or limit order in which the customer does not want to transact automatically at
the inside market, but instead has given the broker time and price discretion in transacting on a
best-efforts basis.
C. The customer is placing full confidence in the broker to execute the trade at the best price.
D. The broker may be held liable for missing the price within the limits (limit not held) or
obtaining a worse price (market not held). correct answers D.
____ A type of defined contribution plan that is not a pension plan.
A. Money purchase plan
B. Target benefit plan
C. Flat benefit plan
D. SEP
E. Cash balance plan
F. Profit sharing plan
G. Unit benefit plan correct answers F.
____ A plan that requires a fixed percentage of compensation be contributed for each eligible
employee.
A. Money purchase plan
B. Target benefit plan
C. Flat benefit plan
D. SEP
E. Cash balance plan
F. Profit sharing plan
G. Unit benefit plan correct answers A.
