Series 6 ADB Practice Exam Questions
and Answers
Which of the following does the fundamental analyst evaluate?
I. Financial statements
11. Liquidity ratios
III. Financial ratios
IV. Chart movements - Answer-I, Il and III
ABC insurance company has issued a variable life insurance contract. The contract offers numerous
investment options, including subaccounts which hold bonds, domestic equities, and foreign securities.
Which of the following may take place once ABC issues this contract?
A Assets may be transferred to a whole life policy
B Assets-may be-transferred to other variable-products, such as variable-annuities or variable universal
life
C Assets must be transferred to an IRA or other qualified retirement plan
D Accumulated assets may be transferred to a term policy provided Ben is below age 59 1/2 and passes
a physical examination to meet the contract's proof of insurability clause - Answer-A Assets may be
transferred to a whole life policy
, A client has two years to convert assets in a variable life policy to a whole life contract. The conversion
privilege is designed to give customers who discover they are uncomfortable with the complexities of a
variable contract the ability to change their policies into a simpler form of insurance
All the following statements regarding a SIMPLE plan are true, except
A SIMPLE plans can be adopted by employers with 250 or fewer employees
B Employees who earned $5k in any 2 previous years and who are reasonably expected to earn at least
$5k in the current year must be eligible to participate in the SIMPLE plan
C The plan may be established as an IRA or 401(k) plan
D All contributions must be fully vested - Answer-A SIMPLE plans can be adopted by employers with 250
or fewer employees
A SIMPLE plan can be adopted by small businesses (self-employed, sole proprietors, partnerships and
corporations) that employ 100 or fewer employees and do not have another qualified plan available.
Craig and Josephine have a joint account with rights of survivorship at ABC Securities. Recently, Craig
died. What procedure should ABC follow in dealing with the account, once proof of death is provided?
A Cancel all open orders
B Liquidate the account and send a check to Josephine
C Wait for instructions from Craig's estate
D Reregister the account in Josephine's name only - Answer-D Reregister the account in Josephine's
name only
JTWROS
What is the Beta of the overall market?
A Zero
B -1
and Answers
Which of the following does the fundamental analyst evaluate?
I. Financial statements
11. Liquidity ratios
III. Financial ratios
IV. Chart movements - Answer-I, Il and III
ABC insurance company has issued a variable life insurance contract. The contract offers numerous
investment options, including subaccounts which hold bonds, domestic equities, and foreign securities.
Which of the following may take place once ABC issues this contract?
A Assets may be transferred to a whole life policy
B Assets-may be-transferred to other variable-products, such as variable-annuities or variable universal
life
C Assets must be transferred to an IRA or other qualified retirement plan
D Accumulated assets may be transferred to a term policy provided Ben is below age 59 1/2 and passes
a physical examination to meet the contract's proof of insurability clause - Answer-A Assets may be
transferred to a whole life policy
, A client has two years to convert assets in a variable life policy to a whole life contract. The conversion
privilege is designed to give customers who discover they are uncomfortable with the complexities of a
variable contract the ability to change their policies into a simpler form of insurance
All the following statements regarding a SIMPLE plan are true, except
A SIMPLE plans can be adopted by employers with 250 or fewer employees
B Employees who earned $5k in any 2 previous years and who are reasonably expected to earn at least
$5k in the current year must be eligible to participate in the SIMPLE plan
C The plan may be established as an IRA or 401(k) plan
D All contributions must be fully vested - Answer-A SIMPLE plans can be adopted by employers with 250
or fewer employees
A SIMPLE plan can be adopted by small businesses (self-employed, sole proprietors, partnerships and
corporations) that employ 100 or fewer employees and do not have another qualified plan available.
Craig and Josephine have a joint account with rights of survivorship at ABC Securities. Recently, Craig
died. What procedure should ABC follow in dealing with the account, once proof of death is provided?
A Cancel all open orders
B Liquidate the account and send a check to Josephine
C Wait for instructions from Craig's estate
D Reregister the account in Josephine's name only - Answer-D Reregister the account in Josephine's
name only
JTWROS
What is the Beta of the overall market?
A Zero
B -1
