HESI A2: Chemistry (Quiz 5) Welcome to your Series 6 Practice Quizzes. Note: We designed four (4) parts of practice quizzes for each Domain. Each part has 25 questions. Domain 2 (part 3): Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives. (25 questions) Please click NEXT to start your Free Series 6 Practice Quizzes right away. Best of Luck! 1. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 An irrevocable trust may be modified by which of the following persons? A) None of these B) Trustee C) Grantor D) Beneficiary None 2. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Adrian and Alex are tenants in a joint account. If Adrian passes away their share of the account will be distributed through Adrian's estate. What type of account is this? A) Tenants-in-common (TIC) B) Tenants by the entirety C) Transfer on death (TOD) D) Joint tenants with rights of survivorship (JTWROS) None 3. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 In order to open a new account for an individual, all of the following information must be obtained except A) Social Security number. B) name and address of current employer. C) date of birth. D) current residence address. None 4. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Under the rules governing the activities of broker-dealer firms, prior consent of the employing firm would not be required in order for a registered representative of the firm to A) open a margin account at another broker-dealer. B) discuss investment strategies with a brother whose account is at another broker-dealer. C) have trading authority in a spouse's account at another broker-dealer. D) open a cash account at another broker-dealer. None 5. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 The term for a customer pledging securities as collateral for a margin loan is A) hypothecation. B) rehypothecation. C) encumbering. D) leverage. None 6. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Buying stocks on margin has all of the following potential benefits except A) leveraging potential returns. B) accelerating the customer's rate of return. C) limiting downside exposure. D) lower initial cash outlay. None 7. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 All of the following securities would be suitable investments for a traditional IRA except A) A corporate bonds. B) AAA municipal bonds. C) AAA U.S. government agency bonds. D) blue-chip common stocks. None 8. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Don is a young man, just beginning his career as an engineer at the ABC Corporation. He doesn't have a lot of financial obligations, and he'd like to start saving for his retirement. Which of the following retirement plans would favor his situation the most? A) 403(b) plan B) 401(k) plan C) 529 plan D) Keogh plan None 9. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 All of the following are true regarding nonqualified deferred compensation plans except A) employees may use accumulated funds as collateral for a bank loan. B) IRS approval is not needed for deferred compensation plans. C) the plans need not be offered to all employees. D) income taxes on compensation are not due until constructive receipt. None 10. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 If a customer works as a nurse in a public school, each of the following statements regarding his school's TSA plan are true except A) mutual funds and CDs are available investment vehicles. B) distributions before age 59½ are normally subject to penalty tax. C) he is not eligible to participate. D) his contributions are before tax. None 11. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 An employee's contribution to a corporate sponsored qualified retirement plan are A) vested on a graded schedule. B) vested after three years. C) always vested. D) vested after five years. None 12. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Under the Employee Retirement Income Security Act of 1974 (ERISA), all of the following guidelines for the regulation of retirement plans are true except A) all qualified plans require a written plan document. B) fully vested employees are entitled to the accumulated retirement accounts if they leave the employer. C) a corporation in business for three years must establish a retirement plan for employees. D) funds contributed to a retirement plan are required to be segregated from corporate assets. None 13. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Which of the following are correct when describing a nonqualified retirement plan? A) Distribution are tax free B) Tax on accumulation is deferred C) Plan must meet IRS guidelines D) Distributions are fully taxable None 14. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Under ERISA, all of the following retirement plans must set standards for vesting, eligibility, and funding except A) corporate pension plans. B) Keogh plans. C) deferred compensation plans. D) profit-sharing plans. None 15. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Regulations regarding how contributions are made to tax-qualified plans relate to which of the following ERISA requirements? A) Reporting and disclosure B) Nondiscrimination C) Funding D) Vesting None 16. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 What is the latest date that an IRA participant may make an IRA deposit for the current year? A) July 15 of the following year, if extensions have been filed B) December 31 of the current year C) April 15 of the current year D) April 15 of the following year None 17. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 If a corporation begins a nonqualified retirement plan, which of the following statements is true? A) Employee contributions grow tax deferred if they are invested in an annuity. B) Employee contributions are tax deductible. C) The employer must abide by all ERISA requirements. D) Employer contributions are tax deductible. None 18. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 All of the following are corporate qualified retirement plans except A) profit-sharing plans. B) defined contribution plans. C) deferred compensation plans. D) defined benefit plans. None 19. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 A nonqualified deferred compensation plan A) must be approved by the IRS. B) does not guarantee that the employer will fulfill its obligation. C) must be offered to all employees. D) guarantees payment to the employee even if the company becomes insolvent. None 20. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 All of the following statements regarding TSA plans are true except A) only teachers may participate. B) growth in the account is tax deferred. C) distributions after age 59½ will be taxed as ordinary income. D) early withdrawals for a vacation will incur a 10% penalty. None 21. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Your customer has contributed $1,000 annually into her Roth IRA for seven years. Which of the following statements concerning her Roth IRA distributions is true? A) Your customer will pay ordinary income taxes on the part of the distribution that represents earnings. B) The distributions are taxed as ordinary income. C) Your customer will not be taxed on the distributions if she is over the age of 59½ and the money has been held in the account for five years, beginning with the first tax year for which a contribution was made to any Roth IRA established for the individual. D) The distributions are taxed as capital gains. None 22. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 In an effort to safeguard customer information, which regulation specifies securing desktop and laptop computers and encrypting email? A) Regulation T B) The Securities Exchange Act C) Regulation A D) Regulation S-P None 23. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 When a customer instructs a registered representative to transfer and ship, the representative instructs the margin department to transfer ownership into A) the brokerage firm's name and deliver the securities to the customer. B) the customer's name and deliver the securities to the customer. C) the customer's name and deliver the securities to the customer's bank for safekeeping. D) the brokerage firm's name and deliver the securities to the brokerage firm's commercial bank for safekeeping. None 24. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 Under the USA PATROIT Act of 2001, which of the following must be maintained by financial institutions, such as banks and broker-dealers, to prevent the financing of terrorist operations and money laundering? A) Privacy notices B) Customer identification programs (CIPs) C) Specially Designated Nationals and Blocked Persons (SDN) list D) Do-not-call lists None 25. Series 6, Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives,Series 6 All of the following addresses are acceptable to open an account for a corporate pension trust except A) any physical location. B) a trustees office address. C) a local office. D) a Post Office Box. None 1 out of 25 Time is Up! Time's up
