Mastery Exam UPDATED ACTUAL Questions and CORRECT Answers
When investors tend to increase their investments in debt
securities into those on the long end of the spectrum
rather than those with short-term maturities, it generally
leads to
A)
a positive yield curve. b
B)
an inverted yield curve.
C)
a flat yield curve.
D)
long-term yields that greatly exceed short-term yields.
When an investment adviser representative terminates
employment with a federal covered investment adviser
and then registers with a state-registered investment ad-
viser in the state where the individual maintains a place of
business,
A)
the investment adviser representative must give notifica-
tion of the termination, and the state-registered adviser
a
must give notification of the employment to the Adminis-
trator promptly.
B)
only the state-registered investment adviser must notify
the Administrator.
C)
the investment adviser representative and the federal cov-
ered adviser must notify the Administrator promptly.
D)
,only the investment adviser representative must notify the
Administrator promptly.
A corporation may benefit by attaching warrants to a new
issue of debt securities from
A)
a decrease in the company's interest costs.
B)
a
a decrease in the earnings per share.
C)
a decrease in the bond's rating.
D)
a decrease in the company's amount of debt service cov-
erage.
A general partner of a real estate DPP is bound by a
fiduciary duty to the partnership. Which of the following
activities would not be considered a conflict of interest for
a general partner?
A)
Selling an oflce building that is owned by his wife to the
partnership d
B)
Accepting a short-term loan from the partnership
C)
Acting as an agent for a competing limited partnership
D)
Determining which accounting firm will prepare the part-
nership's annual tax filings
Sven purchased an American depository receipt (ADR) on
a Swedish corporation. Based on the current price of the
, company's stock, the dividend yield is 2.5%. Sven hopes
to hold the stock for several years and experience a capital
gain. It would be true to state that Sven will
A)
pay foreign taxes on the dividend income, and the invest-
ment is subject to exchange rate risk.
B)
a
pay foreign taxes on the dividend income, and the invest-
ment is not subject to exchange rate risk.
C)
not pay foreign taxes on the dividend income, and the
investment is not subject to exchange rate risk.
D)
not pay foreign taxes on the dividend income, and the
investment is subject to exchange rate risk.
It would be most unusual to see which one of the follow-
ing issued at a discount?
A) b
Treasury bill
B) Jumbo (negotiable) CDs are one of the few money market
Jumbo CD instruments issued at face value. Unlike those issued at a
C) discount, they are interest bearing.
Zero-coupon bond
D)
Commercial paper
In the investment industry, the phrase 2 and 20% most
commonly refers to
A)
the sales commission paid on an equity index annuity.
When investors tend to increase their investments in debt
securities into those on the long end of the spectrum
rather than those with short-term maturities, it generally
leads to
A)
a positive yield curve. b
B)
an inverted yield curve.
C)
a flat yield curve.
D)
long-term yields that greatly exceed short-term yields.
When an investment adviser representative terminates
employment with a federal covered investment adviser
and then registers with a state-registered investment ad-
viser in the state where the individual maintains a place of
business,
A)
the investment adviser representative must give notifica-
tion of the termination, and the state-registered adviser
a
must give notification of the employment to the Adminis-
trator promptly.
B)
only the state-registered investment adviser must notify
the Administrator.
C)
the investment adviser representative and the federal cov-
ered adviser must notify the Administrator promptly.
D)
,only the investment adviser representative must notify the
Administrator promptly.
A corporation may benefit by attaching warrants to a new
issue of debt securities from
A)
a decrease in the company's interest costs.
B)
a
a decrease in the earnings per share.
C)
a decrease in the bond's rating.
D)
a decrease in the company's amount of debt service cov-
erage.
A general partner of a real estate DPP is bound by a
fiduciary duty to the partnership. Which of the following
activities would not be considered a conflict of interest for
a general partner?
A)
Selling an oflce building that is owned by his wife to the
partnership d
B)
Accepting a short-term loan from the partnership
C)
Acting as an agent for a competing limited partnership
D)
Determining which accounting firm will prepare the part-
nership's annual tax filings
Sven purchased an American depository receipt (ADR) on
a Swedish corporation. Based on the current price of the
, company's stock, the dividend yield is 2.5%. Sven hopes
to hold the stock for several years and experience a capital
gain. It would be true to state that Sven will
A)
pay foreign taxes on the dividend income, and the invest-
ment is subject to exchange rate risk.
B)
a
pay foreign taxes on the dividend income, and the invest-
ment is not subject to exchange rate risk.
C)
not pay foreign taxes on the dividend income, and the
investment is not subject to exchange rate risk.
D)
not pay foreign taxes on the dividend income, and the
investment is subject to exchange rate risk.
It would be most unusual to see which one of the follow-
ing issued at a discount?
A) b
Treasury bill
B) Jumbo (negotiable) CDs are one of the few money market
Jumbo CD instruments issued at face value. Unlike those issued at a
C) discount, they are interest bearing.
Zero-coupon bond
D)
Commercial paper
In the investment industry, the phrase 2 and 20% most
commonly refers to
A)
the sales commission paid on an equity index annuity.
