Mastery examination Chapters 1-4 Series 65 Exam || with 100% Error-free Solutions.
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Module
Mastery Chapters 1-4 Series 65
Institution
Mastery Chapters 1-4 Series 65
During a recession an Investor will buy _______________ bonds, and sell ________________ bonds. correct answers corporate | government
The yield spread between government and corporate bonds during a recession should _____________ correct answers widen
Ad Valorem tax correct answers A tax lev...
Mastery examination Chapters 1-4 Series 65 Exam || with
100% Error-free Solutions.
During a recession an Investor will buy _______________ bonds, and sell ________________
bonds. correct answers corporate | government
The yield spread between government and corporate bonds during a recession should
_____________ correct answers widen
Ad Valorem tax correct answers A tax levied according to value, generally used to refer to real
estate tax. Also called the general tax.
Special tax bonds correct answers backed by special taxes (e.g., taxes on tobacco, gasoline,
hotel/motel stay) for a specific project or purpose, but not by ad valorem (property) taxes
Special tax bonds are correct answers non-self supporting debt backed by sales or excise taxes
Self Supporting debt correct answers a municipal revenue bond that pays debt service (both
interest and principal) from the revenues generated from an enterprise activity. (Revenue Bonds)
Non Self Supporting Debt correct answers municipal general obligation bonds that are paid from
tax collections; they are not paid from the revenues from a facility. General obligation bonds are
non-self supporting debts since they are "carried on the backs of the taxpayers".
Excess Contributions to an IRA are subject to a correct answers 6% penalty tax. It actually will
apply until the extra monies are taken out of the account.
There is a ____% penalty for early withdrawals from an IRA. correct answers 10
Which of the following can initiate repurchase agreements with governments and agency
securities as collateral? correct answers Through open trading desk:
Commercial banks
Federal Reserve Banks
Government Securities Dealers
Federal Home loan Banks sell ________ to obtain funding, With the funds, it buys mortgages
from savings and loans, making a _____________ mortgage market by injecting fresh funds in
the market correct answers bonds ; secondary
If a gift of securities is made to a charity, which of the following statements are TRUE?
I The donor gets to deduct the market value of the securities if the securities have been held for
over 1 year
,II The donor gets to deduct the market value of the securities regardless of the length of time
they were held
III The cost basis to the recipient is the same as the donor's
IV The cost basis to the recipient is the same as the market value of the securities on the gift date
A I and III
B I and IV
C II and III
D II and IV correct answers I IV
Margin account correct answers a brokerage account in which, subject to limits, securities can be
bought and sold on credit
Margin account correct answers Long = MV - Debit Balance.
the payments received from a bond can be used to determine the bonds theoretical market price
by: correct answers taking the present value of the payments and adding them up.
What strategy provides a gain equal to the premium in a bear market? correct answers Short
Call( The writer of a call) Agrees to sell the stock at a fixed price. So If the price falls, the call
expires, and the investor is out of the money but the writer of the call collected a premium.
Long Call Option correct answers gives the investor the right to buy a security at a specified
price in the future. Bullish position. Max gain = unlimited.
Long Put Option correct answers Gives the investor the right to sell the option at some point in
the future. Bearish position. Breakeven = strike price - premium
Long Put Option Strategies correct answers - speculation
- deferring a decision
- protection of a long stock position
Long Put correct answers a put buyer owns the right to sell 100 shares of a specific stock at the
strike price before the expiration if he chooses to exercise
A buyer of a long put option hopes that the market correct answers falls so they can sell at the
strike price. It retains the value of a stock. It's also a hedge against a buy and hold option.
On the other side of that is a Short Put writer whom.. correct answers Writes the option contract
in hopes that the market will go up so the buyer won't exercise the contract, hence the writer has
collected the premium and moved on.
, A risk adjusted return is the..... correct answers Return / Beta
An investment adviser that has filed a a form adv with the sec may say he or she is correct
answers registered with SEC
Form ADV correct answers An investment adviser is registered.
Contrarian correct answers an investor who deliberately decides to go against the prevailing
wisdom of other investors
A person with no office in the state is solely engaged in the business of giving investment advice
to insurance companies compensation. Under the Uniform Securities Act, this person would be
exempt from the Act's correct answers registration provisions
The Uniform Securities Act allows the administrator to make, amend, or rescind any provision of
the act, if the action is necessary and in the public interest. T/F correct answers True
Can an adviser accept referral Fees from a tax preparer? correct answers yes
An unregristered person cannot be compensated based on ____________ correct answers
Commissions.
Under the Uniform Securities act, a person who renders investment advice solely about U.S.
Government Agency Securities is defined as an? correct answers Federal Covered Adviser. And
is not required to register under the act. They can't be required to register in the state.
Under the Uniform Securities act, suits alleging criminal violations of the Uniform Securities Act
must be brought within: correct answers 5 years
The Monte Carlo Simulation is used to assess a portfolio's correct answers Probability of
achieving Investment returns under varying conditions.
Monte Carlo Simulation correct answers An analysis technique where a computer model is
iterated many times, with the input values chosen at random for each iteration driven by the input
data, including probability distributions and probabilistic branches. Outputs are generated to
represent the range of possible outcomes for the project. Interest Rates, Returns, Inflation.
Under the Uniform Securities Act, the registration applications of persons associated with the
investment adviser must disclose any administrative orders entered against them by a state
admin. and must disclose any prior misdemeanor convictions for securities or money related
offenses; and any felony convictions. T/F? correct answers True
If an Investment Adviser raises fees what's the appropriate action? correct answers Send a letter
to clients detailing the upcoming change and permit the customers to decide if they wish to
continue with the new terms as of January 1st of the next Calendar year. Form ADV would have
to be updated to reflect the changes either within 30 days. Or by the end of the year.
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