Series 65 Test Geek Exam 2025
Questions and Answers
current ratio - ANSWER✔✔-current assets/current liabilities (liquidity)
quick ratio - ANSWER✔✔-(Acid test)
current assets (exclude investors) / current liabilities
corporations assets - ANSWER✔✔-assets = liabilities + shareholder's equity
current assets - ANSWER✔✔-cash, money market securities, accounts receivable,
inventory
fixed assets - ANSWER✔✔-plant and equipment
current liabilities - ANSWER✔✔-wages, accounts payable, THIS YEARS invest on
outstanding loans
long term liability - ANSWER✔✔-interest on outstanding debt
net worth - ANSWER✔✔-Assets - Liabilities
,leading economic factors - ANSWER✔✔-help predict where we will be in 6-9 months in
the future
e.g. stock market, unemployment claims
coincident economic factors - ANSWER✔✔-current economic factors
e.g. GDP (value of goods/services), manufacturing, unemployment rate
lagging economic factors - ANSWER✔✔-previous economic factors
e.g. inventory, duration of unemployment
inverted yield - ANSWER✔✔-short term bond's yield is higher than long term bonds
due to rapidly decreasing interest rates (precursor to recession)
deflation - ANSWER✔✔-too little money
inflation - ANSWER✔✔-too much money chasing too few goods
cyclical - ANSWER✔✔-automotive, steele (unstable)
uncyclical - ANSWER✔✔-DEFENSIVE - pharmaceuticals, utilities (relatively stable)
fiscal - ANSWER✔✔-government controls (congress/president) spending and taxes
monetary - ANSWER✔✔-FRB - controls inflation through buying/selling T Bills
FRB buys T Bills - ANSWER✔✔-trying to deflate - increase money supply, lower
interest rates, lower value of money, increase exports
, FRB sells T Bills - ANSWER✔✔-trying to inflate - lower money supply, increase interest
rate, increase value of money, lower exports
Buy - ANSWER✔✔-money out
Sell - ANSWER✔✔-money in
balance of payments - ANSWER✔✔-the difference between the flow of money into and
out of a country (credit vs debit)
debit - ANSWER✔✔-money out of country
e.g. buying foreign cars, corporations paying dividends to foreign investors
credit - ANSWER✔✔-money into country
e.g. foreign investors buying stock
time value of money - ANSWER✔✔-FV = PV (1+r) ^t
In FV = PV (1+r) ^t what is 'r'? - ANSWER✔✔-expected rate of return or IRR
Net Present Value - ANSWER✔✔-FV - PV (+ or -)
For investments to 'work' the NPV needs to be - ANSWER✔✔-greater than 0
NPV - ANSWER✔✔-Net Present Value
Beta - ANSWER✔✔-measure of market risk/volatility by comparing your investment to
the overall market (your investment / overall market)
Questions and Answers
current ratio - ANSWER✔✔-current assets/current liabilities (liquidity)
quick ratio - ANSWER✔✔-(Acid test)
current assets (exclude investors) / current liabilities
corporations assets - ANSWER✔✔-assets = liabilities + shareholder's equity
current assets - ANSWER✔✔-cash, money market securities, accounts receivable,
inventory
fixed assets - ANSWER✔✔-plant and equipment
current liabilities - ANSWER✔✔-wages, accounts payable, THIS YEARS invest on
outstanding loans
long term liability - ANSWER✔✔-interest on outstanding debt
net worth - ANSWER✔✔-Assets - Liabilities
,leading economic factors - ANSWER✔✔-help predict where we will be in 6-9 months in
the future
e.g. stock market, unemployment claims
coincident economic factors - ANSWER✔✔-current economic factors
e.g. GDP (value of goods/services), manufacturing, unemployment rate
lagging economic factors - ANSWER✔✔-previous economic factors
e.g. inventory, duration of unemployment
inverted yield - ANSWER✔✔-short term bond's yield is higher than long term bonds
due to rapidly decreasing interest rates (precursor to recession)
deflation - ANSWER✔✔-too little money
inflation - ANSWER✔✔-too much money chasing too few goods
cyclical - ANSWER✔✔-automotive, steele (unstable)
uncyclical - ANSWER✔✔-DEFENSIVE - pharmaceuticals, utilities (relatively stable)
fiscal - ANSWER✔✔-government controls (congress/president) spending and taxes
monetary - ANSWER✔✔-FRB - controls inflation through buying/selling T Bills
FRB buys T Bills - ANSWER✔✔-trying to deflate - increase money supply, lower
interest rates, lower value of money, increase exports
, FRB sells T Bills - ANSWER✔✔-trying to inflate - lower money supply, increase interest
rate, increase value of money, lower exports
Buy - ANSWER✔✔-money out
Sell - ANSWER✔✔-money in
balance of payments - ANSWER✔✔-the difference between the flow of money into and
out of a country (credit vs debit)
debit - ANSWER✔✔-money out of country
e.g. buying foreign cars, corporations paying dividends to foreign investors
credit - ANSWER✔✔-money into country
e.g. foreign investors buying stock
time value of money - ANSWER✔✔-FV = PV (1+r) ^t
In FV = PV (1+r) ^t what is 'r'? - ANSWER✔✔-expected rate of return or IRR
Net Present Value - ANSWER✔✔-FV - PV (+ or -)
For investments to 'work' the NPV needs to be - ANSWER✔✔-greater than 0
NPV - ANSWER✔✔-Net Present Value
Beta - ANSWER✔✔-measure of market risk/volatility by comparing your investment to
the overall market (your investment / overall market)
