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Series 65: Unit 5 Exam questions well answered already passed
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Series 65: Unit 5 Exam questions well answered already passed
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Series 65: Unit 5 ExamOne of your clients approaches you and is looking for an investment that will provide ready marketability
and income. Which of the following would be the least appropriate recommendation?
A. U.S. Treasury notes
B. A money market mutual fund
C. A limited partnership in rental real estate
D. NYSE-listed preferred stock - correct answer ✔✔A limited partnership in rental real estate
In a limited partnership program, which partners manage the partnership's day-to-day operations and
incur unlimited personal liability for the partnership's debts?
A. Both the general partners and the limited partners
B. The general partners
C. The limited partners
D. Neither the general partners nor the limited partners - correct answer ✔✔The general partners
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?
A. Losses generated by the program pass-through to the investor and may be deducted in full against
ordinary income.
B. Once the program has paid taxes on its income, the entire remaining balance passes-through to the
investors.
C. Rather than being a separate taxable entity, the program's income or losses pass-through directly to
the investors.
D. Investors in the program are assured of a steady flow of income if the drilling is successful. - correct
answer ✔✔Rather than being a separate taxable entity, the program's income or losses pass-through
directly to the investors
, A client wishing to invest in precious metals could consider each of the following except
A. lead.
B. silver.
C. platinum.
D. gold. - correct answer ✔✔Lead
Your customer is asking if either exchange-traded funds (ETFs) or exchange-traded notes (ETNs) might be
suitable investments for his portfolio. The customer makes several statements regarding his
understanding of the products, but only one of them is accurate. Which is it?
A. ETNs are issued by financial institutions; therefore, I should be concerned about the credit worthiness
of the issuer.
B. ETNs are equity securities because they trade on exchanges.
C. If I want to sell my shares of an ETF, I have to wait until the next price is calculated to value the
portfolio of securities.
D. ETFs have a fixed coupon rate that I should expect to realize when they mature. - correct answer
✔✔ETNs are issued by financial institutions; therefore, I should be concerned about the credit
worthiness of the issuer
Investing in commodities could involve investing in any of these except
A. agricultural items.
B. animals.
C. consumer durables.
D. industrial metals - correct answer ✔✔Consumer durables
In general, an investor wishing to gain economic exposure to commodities would find it easiest to do so
by
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