1.
Series 65, Economic Factors and Business Information,Series 65
A significant increase in the importing of goods into the United States would likely have what effect on the strength of the U.S. dollar?
1 out of 100
2.
Series 65, Economic Factors and Business Information,Series 65
If a country's current account shows a trade deficit, it is most likely that
2 out of 100
3.
Series 65, Economic Factors and Business Information,Series 65
The primary function of the Federal Reserve System (the Fed) is to
3 out of 100
4.
Series 65, Economic Factors and Business Information,Series 65
When a bank that is a member of the Federal Reserve System borrows from another member bank, the rate that is charged is known as
4 out of 100
5.
Series 65, Economic Factors and Business Information,Series 65
If the dollar weakens, which of the following statements is TRUE?
5 out of 100
6.
Series 65, Economic Factors and Business Information,Series 65
Which of the following statements describes the federal funds rate?
6 out of 100
7.
Series 65, Economic Factors and Business Information,Series 65
Final approval of the annual operating budget for the United States is given by
7 out of 100
8.
Series 65, Economic Factors and Business Information,Series 65
XYZ Aircraft Manufacturing Corporation, based in the United States, announces a multibillion dollar order for its new jumbo jet from Fly Airlines, a Japanese-based carrier. When the sale is completed, there will be
8 out of 100
9.
Series 65, Economic Factors and Business Information,Series 65
Country A develops a new product that is in high demand around the world. The likely effect of this would be
9 out of 100
10.
Series 65, Economic Factors and Business Information,Series 65
If the dollar weakens, which of the following statements is TRUE?
10 out of 100
11.
Series 65, Economic Factors and Business Information,Series 65
A securities analyst's stock selection method is to begin by looking for superior companies, regardless of their industry sector or the condition of the overall economy. In so doing, this analyst is using
11 out of 100
12.
Series 65, Economic Factors and Business Information,Series 65
A research analyst studying the performance of ABC Industries compares that with reports from other analysts reviewing other companies in other industries. This is known as
12 out of 100
13.
Series 65, Economic Factors and Business Information,Series 65
Among the responsibilities of the Federal Reserve (the Fed) is influencing the supply of money and credit in the economy. When performing this function, adjusting which of the following is not a tool at its disposal?
13 out of 100
14.
Series 65, Economic Factors and Business Information,Series 65
Which of the following statements reflects the monetarist economic position?
14 out of 100
15.
Series 65, Economic Factors and Business Information,Series 65
An expansionary fiscal policy would usually result in
15 out of 100
16.
Series 65, Investment Vehicle Characteristics,Series 65
An investor in an equity security
16 out of 100
17.
Series 65, Investment Vehicle Characteristics,Series 65
Which of the following statements about equity securities is NOT true?
17 out of 100
18.
Series 65, Investment Vehicle Characteristics,Series 65
Which of the following statements concerning equity securities is not correct?
18 out of 100
19.
Series 65, Investment Vehicle Characteristics,Series 65
The primary defining characteristic of an equity security is
19 out of 100
20.
Series 65, Investment Vehicle Characteristics,Series 65
All of the following represent ownership in corporation except
20 out of 100
21.
Series 65, Investment Vehicle Characteristics,Series 65
A customer owns cumulative preferred stock (par value of $100) that pays an 8% dividend. The dividend has not been paid this year or for the 2 previous years. How much must the company pay the customer per share before it may pay dividends to the common stockholders?
21 out of 100
22.
Series 65, Investment Vehicle Characteristics,Series 65
A company's dividend on its common stock is
22 out of 100
23.
Series 65, Investment Vehicle Characteristics,Series 65
Investments in which of the following offer the best long-term protection against inflation?
23 out of 100
24.
Series 65, Investment Vehicle Characteristics,Series 65
A common stockholder's rights include all of the following EXCEPT
24 out of 100
25.
Series 65, Investment Vehicle Characteristics,Series 65
One of the features of convertible preferred stock is that
25 out of 100
26.
Series 65, Investment Vehicle Characteristics,Series 65
An employee wishing to obtain long-term capital gain treatment would prefer the employer to offer
26 out of 100
27.
Series 65, Investment Vehicle Characteristics,Series 65
Which of the following statements regarding preemptive rights is TRUE?
27 out of 100
28.
Series 65, Investment Vehicle Characteristics,Series 65
If a customer owns 7% of a publicly-traded company's stock and his spouse owns 6% and wants to sell her shares, which of the following statements is true?
28 out of 100
29.
Series 65, Investment Vehicle Characteristics,Series 65
One way in which incentive stock options (ISOs) differ from nonqualified stock options (NQSOs) is that
29 out of 100
30.
Series 65, Investment Vehicle Characteristics,Series 65
An investor holding which of the following equity securities would NOT expect to have preemptive rights?
30 out of 100
31.
Series 65, Investment Vehicle Characteristics,Series 65
Corporations have found that one way to increase employee motivation is to grant options to purchase stock in the company. Incentive (qualified) options differ from nonqualified options in all of the following respects except
31 out of 100
32.
Series 65, Investment Vehicle Characteristics,Series 65
A client is considering the purchase of American depositary receipts (ADRs). She is looking to further diversify her portfolio. Which of the following is not a feature of this type of investment vehicle?
32 out of 100
33.
Series 65, Investment Vehicle Characteristics,Series 65
Which of the following statements regarding international investing is not correct?
33 out of 100
34.
Series 65, Investment Vehicle Characteristics,Series 65
An employee is offered a nonqualified stock option with an exercise price of $20 per share. If the option is exercised when the current market value of the stock is $30, the employee
34 out of 100
35.
Series 65, Investment Vehicle Characteristics,Series 65
A client is considering the purchase of American depositary receipts (ADRs). She is looking to further diversify her portfolio. Which of the following is NOT a feature of this type of investment vehicle?
35 out of 100
36.
Series 65, Investment Vehicle Characteristics,Series 65
A corporation would like to offer their employees an opportunity to participate in the future growth of the company. Among the methods you might suggest are
36 out of 100
37.
Series 65, Investment Vehicle Characteristics,Series 65
Which of the following is not a characteristic of American depositary receipts (ADRs)?
37 out of 100
38.
Series 65, Investment Vehicle Characteristics,Series 65
One of the rights of being a stockholder is the ability to vote on important corporate matters, such as the election of members to the board of directors. The date that determines which shareholders are eligible to votes is
38 out of 100
39.
Series 65, Investment Vehicle Characteristics,Series 65
A company that has issued cumulative preferred stock
39 out of 100
40.
Series 65, Investment Vehicle Characteristics,Series 65
ADRs are used to facilitate
40 out of 100
41.
Series 65, Client Investment Recommendations and Strategies,Series 65
Ms. Abbot has a joint account with her sister. She enters a sell order in the account and instructs that the proceeds check be made out to her only. If your firm sends the check but makes it payable to both Ms. Abbot and her sister, this is an example of
41 out of 100
42.
Series 65, Client Investment Recommendations and Strategies,Series 65
When does a customer have to receive the OCC Options Disclosure Document?
42 out of 100
43.
Series 65, Client Investment Recommendations and Strategies,Series 65
In an account opened by 2 individuals as joint tenants with rights of survivorship, all of the following are true EXCEPT
43 out of 100
44.
Series 65, Client Investment Recommendations and Strategies,Series 65
One major difference between the customer identification program (CIP) and the new account opening rules of the regulatory bodies is that
44 out of 100
45.
Series 65, Client Investment Recommendations and Strategies,Series 65
One of the portions of the USA PATRIOT Act of 2001that affects the opening of an account for a new customer is
45 out of 100
46.
Series 65, Client Investment Recommendations and Strategies,Series 65
When does a customer have to receive the OCC Options Disclosure Document?
46 out of 100
47.
Series 65, Client Investment Recommendations and Strategies,Series 65
A woman wants to buy from an agent who is not registered in her state. She decides to use a friend's address in the state in which the agent is licensed. This action is
47 out of 100
48.
Series 65, Client Investment Recommendations and Strategies,Series 65
All the following information must be obtained from new individual customers EXCEPT
48 out of 100
49.
Series 65, Client Investment Recommendations and Strategies,Series 65
Two sisters might wish to open an account as tenants in common (TIC) rather than JTWROS in order to
49 out of 100
50.
Series 65, Client Investment Recommendations and Strategies,Series 65
All of the following statements relating to an account registered as tenants in common are true EXCEPT
50 out of 100
51.
Series 65, Client Investment Recommendations and Strategies,Series 65
If a new joint tenants with rights of survivorship account is opened by two related individuals, all of the following statements are true EXCEPT
51 out of 100
52.
Series 65, Client Investment Recommendations and Strategies,Series 65
The customer identification program (CIP) requires that certain information relating to new customers be obtained. Included in that requirement for individual clients who are citizens of the United States are all of the following EXCEPT
52 out of 100
53.
Series 65, Client Investment Recommendations and Strategies,Series 65
Which of the following documents would aid an investment adviser in its responsibility to fully understand the needs of a client when making investment recommendations?
53 out of 100
54.
Series 65, Client Investment Recommendations and Strategies,Series 65
Obtaining all of the following complies with the regulations regarding customer identification programs (CIPs) EXCEPT
54 out of 100
55.
Series 65, Client Investment Recommendations and Strategies,Series 65
Although all new accounts must be approved by a designated supervisor before any trading activity may take place, there is one type of account that must be approved by a specially qualified supervisor. That would be
55 out of 100
56.
Series 65, Client Investment Recommendations and Strategies,Series 65
Under industry rules, customers who wish to trade options must receive a copy of the options disclosure document (ODD)
56 out of 100
57.
Series 65, Client Investment Recommendations and Strategies,Series 65
An advantage of structuring a business operation as an S corporation rather than a C corporation would be
57 out of 100
58.
Series 65, Client Investment Recommendations and Strategies,Series 65
Which of the following individuals may NOT open a joint account?
58 out of 100
59.
Series 65, Client Investment Recommendations and Strategies,Series 65
All of the following actions must be completed prior to customers entering their first option trade EXCEPT
59 out of 100
60.
Series 65, Client Investment Recommendations and Strategies,Series 65
Which of the following actions should be taken by an agent when a client decides to open an options account?
60 out of 100
61.
Series 65, Client Investment Recommendations and Strategies,Series 65
A feature of which of the following business entities is limited liability for owners, as well as flow-through of income?
61 out of 100
62.
Series 65, Client Investment Recommendations and Strategies,Series 65
Small corporations that satisfy certain criteria can elect not to pay income tax at the corporate level but instead pass their earnings through to their shareholders. These corporations are known as
62 out of 100
63.
Series 65, Client Investment Recommendations and Strategies,Series 65
Which of the following is among the items of information that must be entered on a new account form?
63 out of 100
64.
Series 65, Client Investment Recommendations and Strategies,Series 65
The federal legislation that requires broker-dealers to verify the identity of any person opening an account is
64 out of 100
65.
Series 65, Client Investment Recommendations and Strategies,Series 65
Your clients, a married couple, are trying to decide whether to open an account as joint tenants with right of survivorship or tenants by the entirety. You might point out to them that one of the differences to consider is that:
65 out of 100
66.
Series 65, Client Investment Recommendations and Strategies,Series 65
Which of the following types of businessowners has unlimited liability for the business's debts?
66 out of 100
67.
Series 65, Client Investment Recommendations and Strategies,Series 65
There are many different legal ways to structure a new business entity. One of these is the general partnership. Among the benefits of using this structure would be
67 out of 100
68.
Series 65, Client Investment Recommendations and Strategies,Series 65
A client is completing a new account form that contains questions about the investor's investing experience and knowledge. More than likely, what type of account is being opened?
68 out of 100
69.
Series 65, Client Investment Recommendations and Strategies,Series 65
Which of the following business accounts does not require considering the suitability of the owners?
69 out of 100
70.
Series 65, Client Investment Recommendations and Strategies,Series 65
A customer and his spouse own shares in the ABC Fund as joint tenants with rights of survivorship. If the customer dies, what happens to the shares in the account?
70 out of 100
71.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under the Uniform Securities Act, which of the following is an investment adviser?
71 out of 100
72.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under the Uniform Securities Act, a person whose business model is selling reports on a subscription basis concerning specific securities to investors based on their individual objectives will be defined as
72 out of 100
73.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Which of the following is NOT a person as defined by the Uniform Securities Act?
73 out of 100
74.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
The term "investment counsel" can be used by investment advisers
74 out of 100
75.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Which of the following investment advisers would be permitted to use the term "investment counsel"?
75 out of 100
76.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
The responsibility for administering the Investment Advisers Act of 1940 lies with
76 out of 100
77.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Registration as an investment adviser is required for any firm in the business of giving advice on the purchase of
77 out of 100
78.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
A federal covered registered investment adviser who receives compensation for advice and whose business is primarily as an investment adviser may describe its business as investment counsel if
78 out of 100
79.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under the Investment Advisers Act of 1940, which of the following is TRUE about the use of the term "investment counsel" by investment advisers?
79 out of 100
80.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
All of the following have legal standing as persons under the Uniform Securities Act EXCEPT
80 out of 100
81.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Blue-sky laws pertain to all of the following EXCEPT
81 out of 100
82.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under the Uniform Securities Act, which of the following is included in the definition of an investment adviser?
82 out of 100
83.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under the Uniform Securities Act, an accountant who charges hourly fees for securities recommendations in the regular course of his accounting practice is
83 out of 100
84.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Which of the following statements best describes an investment supervisory service as described by the Investment Advisers Act of 1940?
84 out of 100
85.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
An investment adviser whose primary business is the rendering of investment advice providing investment supervisory services is entitled to use the term
85 out of 100
86.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
The responsibility for administering the Investment Advisers Act of 1940 lies with
86 out of 100
87.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
There are waivers from the Series 65 exam requirement for certain professional designations. Among those qualifying for the waiver are individuals who have which of the following designations?
87 out of 100
88.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
The purpose of the Investment Advisers Act of 1940 is to provide
88 out of 100
89.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Which of the following statements is not true of investment advisers under the Uniform Securities Act?
89 out of 100
90.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Which of the following persons does NOT meet the definition of providing investment advice as a business outlined in SEC Release IA-1092?
90 out of 100
91.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
When, if ever, would a broker-dealer be required to register as an investment adviser?
91 out of 100
92.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under the Investment Advisers Act of 1940, which of the following is included in the definition of an investment adviser?
92 out of 100
93.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under SEC Release IA-1092, a financial planner would not be considered an investment adviser when
93 out of 100
94.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Harrison is a Certified Financial Planner (CFP®) with an office in the state and a telephone directory listing under the category "Financial Planners." Harrison has, for fees, written more than 100 comprehensive financial plans for various individual clients. However, only 20% of the plans' content entails advice regarding securities and investments. Which of the following statements best describes Harrison's status as an investment adviser under the USA?
94 out of 100
95.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under the Securities Act of 1933, the term "person" would NOT refer to which of the following?
95 out of 100
96.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
If an investment adviser is registered in another state and has no place of business within an Administrator's state, the adviser is exempt from registration under the Uniform Securities Act if
96 out of 100
97.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Which of the following statements describes a person who provides investment advice on a regular basis but does not charge fees, yet would be considered an adviser under Release IA-1092?
97 out of 100
98.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under the Uniform Securities Act, a person who exclusively provides advice on commodities is
98 out of 100
99.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Which of the following does NOT meet the compensation test for defining investment advisers under SEC Release 1A-1092?
99 out of 100
100.
Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65
Under the Investment Advisers Act of 1940, who is not excluded from the definition of investment adviser when their investment advice is solely incidental to the individual's profession?
100 out of 100
