Series 65 Exam-Prep Final
If proper filing fees are not paid with the registration statement the Administrator will most likely -
correct answer ✔✔Enter a denial order that will be released when the fees are received.
In the event the proper filing fees are not received, the Administrator will issue a denial order that will
be released upon receipt of the fees.
Which of the following orders are kept in the specialist's book? - correct answer ✔✔Limit
Market public orders are executed without delay unless specifically designated as "not held" (hold for a
better time or price) or "not public" (execute away from the trading pit).
Which of the following are true about NASDAQ? I. Not all OTC securities trade on NASDAQ. II. NASDAQ is
an auction market. III. NASDAQ has set trading hours. IV. Certain NYSE stocks trade on NASDAQ. - correct
answer ✔✔I and III
NASDAQ is the electronic pricing bulletin board (and exchange) for only those OTC securities that meet
its listing requirements. There is no physical location, it is not an auction market, and no NYSE-listed
securities trade on NASDAQ.
An employee quits her job where she has a balance of $10,000 in her employer-provided qualified plan.
If she requests that the plan distribution is paid to her so that she can roll the proceeds into an IRA, how
much will she receive from the plan administrator, and how long does she have to complete the tax-free
rollover? - correct answer ✔✔$8,000, 60 days
Because the employee has requested a distribution check, there will be a 20% withholding, and the
participant has 60 days to reinvest it in an IRA to qualify as a tax-free rollover. The full amount of $10,000
must be reinvested, or the withheld amount of 20% will be considered a taxable distribution.
If two securities have a correlation coefficient of 0, the securities prices would - correct answer ✔✔Be
moving independent from each other.
, If the correlation coefficient is 0, then the two securities would have no correlation to each other as far
as their price movement.
Which of the following are characteristics of the interbank system? I. Decentralized; II. Not regulated; III.
Responds to national economic policies; IV. Accommodates retail investors - correct answer ✔✔I and II
The interbank market is not regulated, nor is it centralized. Unlike the Federal Reserve Board, it does
NOT respond to U.S. economic conditions and policies; it is a market for large banks and multinational
companies, not retail investors.
Which of the following are lagging indicators? I. Unemployment rate II. Weekly initial unemployment
claims III. Duration of unemployment IV. Nonfarm payrolls - correct answer ✔✔I and III
The weekly unemployment claims number indicates where employment is moving, and is thus a leading
indicator. Nonfarm payrolls is a coincident indicator.
If an agent solicits or sells an unregistered security, he may avoid civil liabilities by - correct answer
✔✔Making an offer of rescission.
The offer or sale of an unregistered security is a violation of the Act and the purchaser has a right of
rescission. The agent cannot avoid the liabilities by obtaining any written waivers or documents from the
customer.
When is an investment adviser representative's registration effective? - correct answer ✔✔Only during
employment with an adviser
The representative's registration is effective only while he or she is employed by an investment adviser.
When an investment adviser representative begins or terminates an association with an investment
adviser, the investment adviser must promptly notify the administrator. This differs from the
requirements for a broker/dealer and agent whereby both are required to notify the administrator.
A bond that sells above par is known as a premium bond. Which of the following statements are true? -
correct answer ✔✔Nominal yield is the highest yield.
If proper filing fees are not paid with the registration statement the Administrator will most likely -
correct answer ✔✔Enter a denial order that will be released when the fees are received.
In the event the proper filing fees are not received, the Administrator will issue a denial order that will
be released upon receipt of the fees.
Which of the following orders are kept in the specialist's book? - correct answer ✔✔Limit
Market public orders are executed without delay unless specifically designated as "not held" (hold for a
better time or price) or "not public" (execute away from the trading pit).
Which of the following are true about NASDAQ? I. Not all OTC securities trade on NASDAQ. II. NASDAQ is
an auction market. III. NASDAQ has set trading hours. IV. Certain NYSE stocks trade on NASDAQ. - correct
answer ✔✔I and III
NASDAQ is the electronic pricing bulletin board (and exchange) for only those OTC securities that meet
its listing requirements. There is no physical location, it is not an auction market, and no NYSE-listed
securities trade on NASDAQ.
An employee quits her job where she has a balance of $10,000 in her employer-provided qualified plan.
If she requests that the plan distribution is paid to her so that she can roll the proceeds into an IRA, how
much will she receive from the plan administrator, and how long does she have to complete the tax-free
rollover? - correct answer ✔✔$8,000, 60 days
Because the employee has requested a distribution check, there will be a 20% withholding, and the
participant has 60 days to reinvest it in an IRA to qualify as a tax-free rollover. The full amount of $10,000
must be reinvested, or the withheld amount of 20% will be considered a taxable distribution.
If two securities have a correlation coefficient of 0, the securities prices would - correct answer ✔✔Be
moving independent from each other.
, If the correlation coefficient is 0, then the two securities would have no correlation to each other as far
as their price movement.
Which of the following are characteristics of the interbank system? I. Decentralized; II. Not regulated; III.
Responds to national economic policies; IV. Accommodates retail investors - correct answer ✔✔I and II
The interbank market is not regulated, nor is it centralized. Unlike the Federal Reserve Board, it does
NOT respond to U.S. economic conditions and policies; it is a market for large banks and multinational
companies, not retail investors.
Which of the following are lagging indicators? I. Unemployment rate II. Weekly initial unemployment
claims III. Duration of unemployment IV. Nonfarm payrolls - correct answer ✔✔I and III
The weekly unemployment claims number indicates where employment is moving, and is thus a leading
indicator. Nonfarm payrolls is a coincident indicator.
If an agent solicits or sells an unregistered security, he may avoid civil liabilities by - correct answer
✔✔Making an offer of rescission.
The offer or sale of an unregistered security is a violation of the Act and the purchaser has a right of
rescission. The agent cannot avoid the liabilities by obtaining any written waivers or documents from the
customer.
When is an investment adviser representative's registration effective? - correct answer ✔✔Only during
employment with an adviser
The representative's registration is effective only while he or she is employed by an investment adviser.
When an investment adviser representative begins or terminates an association with an investment
adviser, the investment adviser must promptly notify the administrator. This differs from the
requirements for a broker/dealer and agent whereby both are required to notify the administrator.
A bond that sells above par is known as a premium bond. Which of the following statements are true? -
correct answer ✔✔Nominal yield is the highest yield.
