Series 65 Exam 3 UPDATED ACTUAL
Exam Questions and CORRECT Answers
- Sell short
- Be bought and sold on margin - CORRECT ANSWER - When comparing exchange-traded
fund (ETFs) to mutual funds, some features available in ETFs that are NOT found in the mutual
funds would include the ability to:
7% coupon yielding 7.5% - CORRECT ANSWER - Which of the following indicates a bond
selling at a discount?
An investment whose value is based upon another asset. - CORRECT ANSWER - Which of
the following best defines a derivative?
The potential for a higher cash value and death benefit. - CORRECT ANSWER - The main
benefit that variable life insurance has over whole life insurance is:
GNMAs - CORRECT ANSWER - An investor interested in monthly interest income should
invest in:
$300 - CORRECT ANSWER - If a call option with an exercise price of $50 is purchased for
$300, the maximum amount the investor can loose is
Straight life - CORRECT ANSWER - For a given amount of principal. which annuity option
would produce the largest monthly income stream?
REITs - CORRECT ANSWER - One of the most important definitions found in the
investment Company Act of 1940 is that of "investment company". Included in that definition
are all of the following EXCEPT:
, Zero-coupon bond with 15 years to maturity - CORRECT ANSWER - Of the following
bonds, which has the greatest price volatility?
inflation rate - CORRECT ANSWER - In the secondary market, Treasury bond prices are
most influenced by the:
closed-end fund - CORRECT ANSWER - If you were describing an investment that trades on
an exchange with a price set by supply and demand, rather than it's underlying value, it would be
a(n)
Bank Jumbo CD - CORRECT ANSWER - Which of the following would you NOT expect to
see issued at a discount?
mutual fund - CORRECT ANSWER - An open-end investment company is also referred to as
a(n):
- American depositary receipts
- Corporate bonds - CORRECT ANSWER - Which of the following are NOT considered
money market instructions?
No less frequently than once per day. - CORRECT ANSWER - According to the investment
Company Act of 1940, an open-end investment company must compute its NAV:
The price of the bonds would decrease. - CORRECT ANSWER - What would likely happen
to the market value of existing bonds during an
inflationary period coupled with rising interest rates?
discounted cash flow - CORRECT ANSWER - A method of valuing an investment,
particularly debt securities, by
calculating what future cash returns will be worth at the time they are
received, based on estimates of future inflation and interest rates is known
Exam Questions and CORRECT Answers
- Sell short
- Be bought and sold on margin - CORRECT ANSWER - When comparing exchange-traded
fund (ETFs) to mutual funds, some features available in ETFs that are NOT found in the mutual
funds would include the ability to:
7% coupon yielding 7.5% - CORRECT ANSWER - Which of the following indicates a bond
selling at a discount?
An investment whose value is based upon another asset. - CORRECT ANSWER - Which of
the following best defines a derivative?
The potential for a higher cash value and death benefit. - CORRECT ANSWER - The main
benefit that variable life insurance has over whole life insurance is:
GNMAs - CORRECT ANSWER - An investor interested in monthly interest income should
invest in:
$300 - CORRECT ANSWER - If a call option with an exercise price of $50 is purchased for
$300, the maximum amount the investor can loose is
Straight life - CORRECT ANSWER - For a given amount of principal. which annuity option
would produce the largest monthly income stream?
REITs - CORRECT ANSWER - One of the most important definitions found in the
investment Company Act of 1940 is that of "investment company". Included in that definition
are all of the following EXCEPT:
, Zero-coupon bond with 15 years to maturity - CORRECT ANSWER - Of the following
bonds, which has the greatest price volatility?
inflation rate - CORRECT ANSWER - In the secondary market, Treasury bond prices are
most influenced by the:
closed-end fund - CORRECT ANSWER - If you were describing an investment that trades on
an exchange with a price set by supply and demand, rather than it's underlying value, it would be
a(n)
Bank Jumbo CD - CORRECT ANSWER - Which of the following would you NOT expect to
see issued at a discount?
mutual fund - CORRECT ANSWER - An open-end investment company is also referred to as
a(n):
- American depositary receipts
- Corporate bonds - CORRECT ANSWER - Which of the following are NOT considered
money market instructions?
No less frequently than once per day. - CORRECT ANSWER - According to the investment
Company Act of 1940, an open-end investment company must compute its NAV:
The price of the bonds would decrease. - CORRECT ANSWER - What would likely happen
to the market value of existing bonds during an
inflationary period coupled with rising interest rates?
discounted cash flow - CORRECT ANSWER - A method of valuing an investment,
particularly debt securities, by
calculating what future cash returns will be worth at the time they are
received, based on estimates of future inflation and interest rates is known
