Series 6 Practice and Mastery Exam UPDATED ACTUAL Questions and
CORRECT Answers
with a beta of:
Your client retired from his job three years ago and placed
all of the proceeds of his 401(k) distribution into a rollover
IRA at his local bank. He is unhappy with his return and
wishes to transfer the funds to an IRA at your broker/deal-
er. Which of the following statements regarding this situ-
ation is TRUE?
A 50-year-old widow uses the proceeds of her late hus-
band's life insurance policy to purchase a single premium
variable annuity in the amount of $100,000. Five years lat-
er, when the account is valued at $130,000, she withdraws
$50,000. If she is in the 25% tax bracket, what is the total
tax due on the withdrawal?
If an investor has purchased an immediate variable an-
nuity, which of the following statements best describe the
investment?
In constructing a profile for your customer, you wish to
assemble information on both financial and nonfinan-
cial investment considerations that affect your customer.
Which of the following qualify as financial investment con-
siderations?
Funds that comply with Subchapter M are known as
Distributions from net investment income paid to share-
holders by an investment company meeting the require-
ments to be a regulated investment company are
You are using beta as an analytical tool to compare several
diversified mutual funds to help a client choose one for his
portfolio. If your client's risk tolerance regarding principal
is relatively low, you would probably recommend the fund
, Trustee-to-trustee transfers do not incur any tax
conse-quences.
c) $17,500
50,000 x 0.25 = $12,500 (tax
bracket)plus
50,000 x 0.10 = $5,000 (penalty)
total: $17,500
I.It was a lump-sum purchase.
III. Distributions to the annuitant will fluctuate during
thepayout period.
III. Your customer's liquid net worth
IV.Your customer's monthly credit card payments
regulated investment
companies
.5
2/4
CORRECT Answers
with a beta of:
Your client retired from his job three years ago and placed
all of the proceeds of his 401(k) distribution into a rollover
IRA at his local bank. He is unhappy with his return and
wishes to transfer the funds to an IRA at your broker/deal-
er. Which of the following statements regarding this situ-
ation is TRUE?
A 50-year-old widow uses the proceeds of her late hus-
band's life insurance policy to purchase a single premium
variable annuity in the amount of $100,000. Five years lat-
er, when the account is valued at $130,000, she withdraws
$50,000. If she is in the 25% tax bracket, what is the total
tax due on the withdrawal?
If an investor has purchased an immediate variable an-
nuity, which of the following statements best describe the
investment?
In constructing a profile for your customer, you wish to
assemble information on both financial and nonfinan-
cial investment considerations that affect your customer.
Which of the following qualify as financial investment con-
siderations?
Funds that comply with Subchapter M are known as
Distributions from net investment income paid to share-
holders by an investment company meeting the require-
ments to be a regulated investment company are
You are using beta as an analytical tool to compare several
diversified mutual funds to help a client choose one for his
portfolio. If your client's risk tolerance regarding principal
is relatively low, you would probably recommend the fund
, Trustee-to-trustee transfers do not incur any tax
conse-quences.
c) $17,500
50,000 x 0.25 = $12,500 (tax
bracket)plus
50,000 x 0.10 = $5,000 (penalty)
total: $17,500
I.It was a lump-sum purchase.
III. Distributions to the annuitant will fluctuate during
thepayout period.
III. Your customer's liquid net worth
IV.Your customer's monthly credit card payments
regulated investment
companies
.5
2/4
