Series 65 practice test 1 Questions with Correct Answers
1. Which of the following is a notice made in the financial press that
formally announces a particular transaction, such as an IPO for stock
placement?
A. Omitting prospectus
B. Preliminary prospectus
C. Red herring
D. Tombstone ad Correct Answer-1. D.
The tombstone ad is a notice made in the financial press that formally
announces a particular transaction, such as an IPO or stock placement.
2. One of the following is/are correct regarding stock splits in reverse
stock splits?
(1) a three for one stock split will decrease a stock's market price per
share
(2) a reverse stock split is intended to increase a stock's market price per
share
A. (1) only
B. (2) only
C. Both (1) and (2) are correct
D. Neither (1) or (2) are correct Correct Answer-2. C
Both (1) and (2) are correct.
1) a three for one stock split will decrease a stock's market price per
share
,2) a reverse stock split is intended to increase a stock's market price per
share
3. Which of the following is the minimum denomination that of treasury
notes that can be purchased by an investor?
A. $50.00
B. $100
C. $1000
D. $10,000 Correct Answer-3. B
Treasury notes are sold in minimum denominations of $100
4. The statement of cash flows is separated into all but which of the
following categories?
A. Cash flow from financing activities
B. Cash flow from income activities
C. Cash flow from investing activities
D. Cash flow from operating activities Correct Answer-4. B
The statement of cash flows a separate into the following three
categories: cash flow from finance activities, cash flow from investing
activities, and cash flow from operating activities.
5. Which are the following are permitted investment in an IRA?
(1) real estate
(2) money market funds
(3) common stock
,(4) bond funds
A. Three and four only
B. 1, 2 and three only
C. 2, 3 and four only
D. All of the above are correct Correct Answer-5. D
IRAs may invest in all four types of investments, including real estate
investment trusts (REIT)
6. Which of the following statements describes a typical whole Life
Insurance policy?
(1) The premiums must be paid for the insured's entire lifetime or for a
period of at least 10 years.
(2) The cash value cannot be used as collateral for a loan.
(3) The difference between a policy's face amount in the reserve must be
greater than the cash surrender value at all times.
(4) The cash value must equal the face amount of coverage by the end of
the mortality table.
A. Four only
B. Two and three only
C. One, two and three only
D. All of the above are correct Correct Answer-6. A
The cash value of a whole Life Insurance policy must equal the face
amount of coverage by the end of the mortality table.
, 7. Which of the following is cracked regarding a mutual funds turnover
rate?
A. The higher the turnover rate, the less effcient the mutual fund will be.
Therefore, funds with high turnover rates are best positioned in taxable
accounts.
B. The higher the turnover rate, the more effcient the mutual fund will
be. Therefore, funds with low turnover rates are best positioned in tax
deferred accounts.
C. The higher the turnover rate, the last effecient the mutual fund will
be. Therefore, funds with high to ever rates are best positioned in tax
deferred accounts.
D. None of the above are correct. Correct Answer-7. C.
The higher the Turner rate, the less tax effecient the mutual fund will be.
There for funds with a high turnover rate her best positioned in tax
deferred account.
8. If an RIA has between ____________ and ___________of assets
under management, the RIA may register with either date applicable
state(s) where the RIA maintains clients or the SEC, at the RIA's
discretion.
A. $10,000,000, $100,000,000
B. $25,000,000, $100,000,000
C. $50,000,000, $150,000,000
D. $100,000,000, $200,000,000 Correct Answer-8. B
If an RIA has between 25,000,001 $100,000,000 of assets under
management, the RIA may register would either the applicable state(s)
1. Which of the following is a notice made in the financial press that
formally announces a particular transaction, such as an IPO for stock
placement?
A. Omitting prospectus
B. Preliminary prospectus
C. Red herring
D. Tombstone ad Correct Answer-1. D.
The tombstone ad is a notice made in the financial press that formally
announces a particular transaction, such as an IPO or stock placement.
2. One of the following is/are correct regarding stock splits in reverse
stock splits?
(1) a three for one stock split will decrease a stock's market price per
share
(2) a reverse stock split is intended to increase a stock's market price per
share
A. (1) only
B. (2) only
C. Both (1) and (2) are correct
D. Neither (1) or (2) are correct Correct Answer-2. C
Both (1) and (2) are correct.
1) a three for one stock split will decrease a stock's market price per
share
,2) a reverse stock split is intended to increase a stock's market price per
share
3. Which of the following is the minimum denomination that of treasury
notes that can be purchased by an investor?
A. $50.00
B. $100
C. $1000
D. $10,000 Correct Answer-3. B
Treasury notes are sold in minimum denominations of $100
4. The statement of cash flows is separated into all but which of the
following categories?
A. Cash flow from financing activities
B. Cash flow from income activities
C. Cash flow from investing activities
D. Cash flow from operating activities Correct Answer-4. B
The statement of cash flows a separate into the following three
categories: cash flow from finance activities, cash flow from investing
activities, and cash flow from operating activities.
5. Which are the following are permitted investment in an IRA?
(1) real estate
(2) money market funds
(3) common stock
,(4) bond funds
A. Three and four only
B. 1, 2 and three only
C. 2, 3 and four only
D. All of the above are correct Correct Answer-5. D
IRAs may invest in all four types of investments, including real estate
investment trusts (REIT)
6. Which of the following statements describes a typical whole Life
Insurance policy?
(1) The premiums must be paid for the insured's entire lifetime or for a
period of at least 10 years.
(2) The cash value cannot be used as collateral for a loan.
(3) The difference between a policy's face amount in the reserve must be
greater than the cash surrender value at all times.
(4) The cash value must equal the face amount of coverage by the end of
the mortality table.
A. Four only
B. Two and three only
C. One, two and three only
D. All of the above are correct Correct Answer-6. A
The cash value of a whole Life Insurance policy must equal the face
amount of coverage by the end of the mortality table.
, 7. Which of the following is cracked regarding a mutual funds turnover
rate?
A. The higher the turnover rate, the less effcient the mutual fund will be.
Therefore, funds with high turnover rates are best positioned in taxable
accounts.
B. The higher the turnover rate, the more effcient the mutual fund will
be. Therefore, funds with low turnover rates are best positioned in tax
deferred accounts.
C. The higher the turnover rate, the last effecient the mutual fund will
be. Therefore, funds with high to ever rates are best positioned in tax
deferred accounts.
D. None of the above are correct. Correct Answer-7. C.
The higher the Turner rate, the less tax effecient the mutual fund will be.
There for funds with a high turnover rate her best positioned in tax
deferred account.
8. If an RIA has between ____________ and ___________of assets
under management, the RIA may register with either date applicable
state(s) where the RIA maintains clients or the SEC, at the RIA's
discretion.
A. $10,000,000, $100,000,000
B. $25,000,000, $100,000,000
C. $50,000,000, $150,000,000
D. $100,000,000, $200,000,000 Correct Answer-8. B
If an RIA has between 25,000,001 $100,000,000 of assets under
management, the RIA may register would either the applicable state(s)
