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Series 65 Mastery exam questions well answered to pass
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Series 65 Mastery exam questions well answered to pass
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Series 65 Mastery examWhich of the following quantitative measurements would probably be the most important to an investor
in high-quality fixed income investments?
A)
Annualized return
B)
Expected return
C)
After-tax return
D)
Inflation-adjusted return - correct answer ✔✔D
(One of the risks that an investor in fixed income securities (regardless of rating) incurs is the loss of
purchasing power. To create a measure of a fixed income investor's return, you should take into account
the impact of inflation through the calculation of inflation-adjusted return.)
The most important of the following nonfinancial considerations an agent should ascertain from the
client when determining suitability is
A)
political orientation
B)
risk tolerance
C)
tax status
D)
education - correct answer ✔✔b
,(It is important to know both risk tolerance and tax status, but tax status is a financial consideration, and
this question asks for a nonfinancial consideration.)
Under the Uniform Securities Act, all of the following persons with no place of business in the state are
exempt from registration as investment advisers EXCEPT
A)
advisers who deal exclusively with federal covered investment advisers located in the state
B)
advisers who have conducted business with no more than 6 individual clients in the state within the last
12 months
C)
advisers who deal exclusively with broker-dealers in the state
D)
advisers who deal exclusively with insurance companies located in the state - correct answer ✔✔b
(The de minimis rule for a registered investment adviser who has no place of business in the state is
fewer than 6 individual clients (or 5 or fewer). Doing business with 14 or fewer clients within the last 12
months is the federal de minimis amount for foreign private advisers and, therefore, the state exemption
from registration does not exist. All others listed as possible answers are institutional or professional
type of investment clients. If a registered investment adviser works only with this type of client, an
exemption from registration in that state exists as long as the registered investment adviser has no place
of business in that state.)
Which of the following statements regarding registration requirements under the Uniform Securities Act
is NOT true?
A)
An agent that does not live in a state can solicit business in that state if the agent and the broker- dealer
are registered in that state.
B)
The revocation of a broker-dealer's registration in a state has no effect on the registration of agents
employed by that broker-dealer.
C)
,If an agent resigns from his employing broker-dealer and affiliates with another broker-dealer, both firms
and the agent must notify the State Administrator of the change in employment.
D)
An agent may lawfully sell securities that have been registered in a state or that are exempt from
registration in the state. - correct answer ✔✔b
(If a broker-dealer's registration within any given state is revoked, all agents that work under the
supervision of that broker-dealer will also have their registration with the State terminated. They will not
have their registrations revoked but will have the ability to reregister with another broker-dealer through
a new registration process.)
XYZ Securities is a broker-dealer based in Wisconsin with offices in no other state. In addition to its
Wisconsin clients, XYZ has 30 retail customers living in Illinois. During the winter, if 10 existing customers
vacation in Florida for up to 7 weeks at a time, XYZ Securities is a broker-dealer in
A)
Wisconsin only
B)
Wisconsin, Illinois, and Florida
C)
Wisconsin and Illinois
D)
all states having enacted the USA - correct answer ✔✔c
(Under the USA, XYZ Securities is a broker-dealer in Wisconsin because it maintains an office there. XYZ
Securities is also a broker-dealer in Illinois because with 30 Illinois retail (non-institutional) customers,
registration is required even if there is no physical office in Illinois. Because none of XYZ's clients has
taken up residence in Florida, such clients are transients rather than residents.)
One of the terms found in the Securities Exchange Act of 1934 is that of a "person associated with a
broker-dealer." Included in that definition would be all of the following EXCEPT
A)
any person directly or indirectly controlling, controlled by, or under common control with the broker-
dealer
, B)
an individual registered with the broker-dealer as an agent who does not maintain a place of business in
the state
C)
the individual managing the firm's smallest branch office
D)
an individual whose sole duties are ministerial in nature - correct answer ✔✔d
(As defined in the act, the term "person associated with a broker or dealer" or "associated person of a
broker or dealer" means any partner, officer, director, any person directly or indirectly controlling,
controlled by, or under common control with such broker or dealer, or any employee of such broker or
dealer, except that any person associated with a broker or dealer whose functions are solely clerical or
ministerial shall not be included in the meaning of such term.)
Parker and Mary have recently divorced. For Mary to receive Social Security benefits based on Parker's
earnings, which of the following conditions must exist?
A)
Parker must already be at full retirement age.
B)
The marriage must have lasted at least 10 years.
C)
Parker must not be remarried.
D)
Mary must have worked at least 40 quarters to be eligible for benefits. - correct answer ✔✔b
(The marriage of these two must have lasted at least 10 years. In addition, Mary cannot be remarried
(Parker can be). It is Parker who must have at least 40 quarters to earn Social Security benefits. As long
as Parker is drawing benefits—and one can start before full retirement age—benefits will be available as
long as all of the conditions are met.)
A FinCEN Form 112 would need to be filed when a client
A)
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