Series 65: Dean Tinney Kaplan Practice Test/Notes
Questions with Correct Answers
A registered broker-dealer would not be able to open an account for
A. A deceased individual
B. The American Cancer Society
C. The sovereign government of Poland
D. A convicted felon Correct Answer-A deceased individual
Gaston is a police officer and wishes to contribute to a retirement plan
sponsored by the city. Gaston wants the flexibility of being able to have
unfettered penalty-free access to his funds before reaching age 59 1/2.
This can only be accomplished if Gaston contributes to
A. 401(k) plan
B. 403(b) plan
C. SEP IRA
D. 457 plan Correct Answer-457 plan
A married couple has lived in the same home for 40 years and now, w/
the children all gone, they've decided to sell and move to a retirement
village. They purchased the home for $80k and have accepted a contract
for $800k. The tax consequences of this sale is
A. $0 capital gain
,B. $720k capital gain
C. $470k capital gain
D. $220k capital gain Correct Answer-$220k
A married couple has lived in the same home for 40 years and now, w/
the children all gone, they've decided to sell and move to a retirement
village. They purchased the home for $80k and have accepted a contract
for $800k. The tax consequences of this sale is $220k capital gain
How do you calculate this? Correct Answer-First $250k is included -
married couple = $500k excluded plus the $80k
In order to compute the real rate of return for a security, it would be
necessary to know all of the following except
A. The annual dividend
B. The CPI
C. The beta of the security
D. The purchase price Correct Answer-The beta of the security
Under the Uniform Securities Act, which of the following is an agent?
A. An individual who is in the business of providing investment advice
on behalf of his employer
B. A clerical person who files trade confirmations for the firm
,C. A broker-dealer that charges a commission as a regular part of its
business
D. An individual who effects securities transactions for commissions
Correct Answer-An individual who effects securities transactions for
commissions
Which of the following statements about diversification through asset
class allocation are true?
1. Diversification involves investing a portfolio in at least 20 different
securities of the same asset class
2. Diversification is a way to reduce unsystematic risk in a portfolio
3. Diversification is a defensive investment strategy Correct Answer-
Diversification is a way to reduce unsystematic risk in a portfolio and
diversification is a defensive investment strategy
The Administrator has just notified Rockland Securities that its
application to operate as a broker-dealer in this state is now effective.
Which of the following parties would be considered registered?
1. The firm
2. Its officers functioning as agents
3. Its directors functioning as agents
4. Its agents Correct Answer-The firm, its officers functioning as agents,
and its directors functioning as agents
, Which of the following is responsible for administration of the Bank
Secrecy Act?
A. The Financial Crimes Enforcement Network
B. Securities and Exchange Commission
C. Security Services
D. Department of Health and Human Services Correct Answer-The
Financial Crimes Enforcement Network
Which of the following bond diversification strategies involves
purchasing only short-term and long-term bonds?
A. Immunization
B. Bullet strategy
C. Laddering strategy
D. Barbell strategy Correct Answer-Barbell strategy
A 74-year-old widower has been your client since his early 50s. He is a
well-informed investor and has always seemed capable of understanding
most investment concepts you have presented. At least twice a year, the
2 of you meet to evaluate his current financial situation and objectives.
In your last meeting, it seemed to you that he was distracted and
somewhat forgetful. It would be appropriate for you to do all of the
following except
A. Take detailed notes on future conversations and meetings w/ him
Questions with Correct Answers
A registered broker-dealer would not be able to open an account for
A. A deceased individual
B. The American Cancer Society
C. The sovereign government of Poland
D. A convicted felon Correct Answer-A deceased individual
Gaston is a police officer and wishes to contribute to a retirement plan
sponsored by the city. Gaston wants the flexibility of being able to have
unfettered penalty-free access to his funds before reaching age 59 1/2.
This can only be accomplished if Gaston contributes to
A. 401(k) plan
B. 403(b) plan
C. SEP IRA
D. 457 plan Correct Answer-457 plan
A married couple has lived in the same home for 40 years and now, w/
the children all gone, they've decided to sell and move to a retirement
village. They purchased the home for $80k and have accepted a contract
for $800k. The tax consequences of this sale is
A. $0 capital gain
,B. $720k capital gain
C. $470k capital gain
D. $220k capital gain Correct Answer-$220k
A married couple has lived in the same home for 40 years and now, w/
the children all gone, they've decided to sell and move to a retirement
village. They purchased the home for $80k and have accepted a contract
for $800k. The tax consequences of this sale is $220k capital gain
How do you calculate this? Correct Answer-First $250k is included -
married couple = $500k excluded plus the $80k
In order to compute the real rate of return for a security, it would be
necessary to know all of the following except
A. The annual dividend
B. The CPI
C. The beta of the security
D. The purchase price Correct Answer-The beta of the security
Under the Uniform Securities Act, which of the following is an agent?
A. An individual who is in the business of providing investment advice
on behalf of his employer
B. A clerical person who files trade confirmations for the firm
,C. A broker-dealer that charges a commission as a regular part of its
business
D. An individual who effects securities transactions for commissions
Correct Answer-An individual who effects securities transactions for
commissions
Which of the following statements about diversification through asset
class allocation are true?
1. Diversification involves investing a portfolio in at least 20 different
securities of the same asset class
2. Diversification is a way to reduce unsystematic risk in a portfolio
3. Diversification is a defensive investment strategy Correct Answer-
Diversification is a way to reduce unsystematic risk in a portfolio and
diversification is a defensive investment strategy
The Administrator has just notified Rockland Securities that its
application to operate as a broker-dealer in this state is now effective.
Which of the following parties would be considered registered?
1. The firm
2. Its officers functioning as agents
3. Its directors functioning as agents
4. Its agents Correct Answer-The firm, its officers functioning as agents,
and its directors functioning as agents
, Which of the following is responsible for administration of the Bank
Secrecy Act?
A. The Financial Crimes Enforcement Network
B. Securities and Exchange Commission
C. Security Services
D. Department of Health and Human Services Correct Answer-The
Financial Crimes Enforcement Network
Which of the following bond diversification strategies involves
purchasing only short-term and long-term bonds?
A. Immunization
B. Bullet strategy
C. Laddering strategy
D. Barbell strategy Correct Answer-Barbell strategy
A 74-year-old widower has been your client since his early 50s. He is a
well-informed investor and has always seemed capable of understanding
most investment concepts you have presented. At least twice a year, the
2 of you meet to evaluate his current financial situation and objectives.
In your last meeting, it seemed to you that he was distracted and
somewhat forgetful. It would be appropriate for you to do all of the
following except
A. Take detailed notes on future conversations and meetings w/ him
