ad banker exam
A client has been a participant in their employer's Keogh plan for over 20 years and is
60 years old. The client is ready to retire and has decided to receive a lump-sum
distribution from the plan consisting of employer contributions of $60,000, plus $35,000
in interest earnings, and $15,000 of voluntary after-tax contributions made, plus $10,000
in interest earnings. How much of this distribution will be taxed?
$50,000
B
$120,000
C
$95,000
D
$105,000 - CORRECT ANSWER-105,000
Which of the following would not be required to satisfy the fingerprinting requirement?
An individual that is client facing, soliciting securities business
B
An individual that works in the back-office handling accounting records
C
An individual that works in the broker-dealer marketing department
D
A supervising principal that oversees the activities at a branch - CORRECT ANSWER-
An individual that works in the broker-dealer marketing department
Which securities offer the best protection of purchasing power?
Municipal bonds
B
Variable annuities
C
Series EE bonds
D
Fixed annuities - CORRECT ANSWER-Variable annuities
When a company offers investors an ownership position in the company, it is offering:
A
Notes
B
Stocks
C
Money market instruments
D
Bonds - CORRECT ANSWER-stocks
,An investor purchases shares of ABC Corporation on Thursday, June 1. Under regular-
way settlement, what is the settlement date for this transaction?
A
Monday, June 5
B
Thursday, June 1
C
Friday, June 2
D
Tuesday, June 6 - CORRECT ANSWER-monday
A registered representative has an appointment scheduled to discuss a variable life
insurance policy with a potential client. When must the potential client receive a copy of
the prospectus?
A
The prospectus must be delivered within 3 business days of the initial appointment
B
he prospectus must be provided when the client first arrives for the appointment
C
The prospectus must be provided prior to or at the time of the sale
D
The prospectus only needs to be furnished if the client requests a copy - CORRECT
ANSWER-c
Which of the following documents is filed with the SEC during the pre-filing period for
new securities?
A
Public Offering Price
B
Tombstone Ad
C
Registration Statement
D
Prospectus - CORRECT ANSWER-c
Which of the following is an accurate description of an American Depositary Receipt
(ADR)?
A
Shares of a foreign corporation held in a foreign branch of an American bank
B
Shares of a foreign corporation held in a foreign bank
, C
Shares of a domestic corporation held in a foreign branch of an American bank
D
Shares of a foreign corporation held in a domestic bank - CORRECT ANSWER-a
Which of the following statements regarding SEP IRAs is false?
A
Contributions to SEP IRAs are not tax deductible
B
The SEP is established by the employer
C
The contribution amount for a SEP IRA is significantly greater than for a traditional IRA
D
The SEP allows for flexible contribution amounts - CORRECT ANSWER-a
Three friends have a joint account registered as tenants in common. The account
reflects only one Social Security number. One of the friends dies and sufficient proof is
provided. What will happen to the assets in the account?
A
The decedent's assets will go to their estate
B
The decedent's portion of the account will move to the friend whose Social Security
number is on the account
C
The remaining friends will obtain the decedent's portion of the account
D
The account will be closed, and the assets will be distributed equally to each party -
CORRECT ANSWER-a
How are hedge funds structured?
A
They are structured as LLCs
B
They are structured as corporations
C
They are structured as limited partnerships
D
They are structured as general partnerships - CORRECT ANSWER-c
An investor is considering purchasing bonds and inquires about the differences and key
features of convertible and non-convertible corporate bonds. All the following are true
statements, except:
A client has been a participant in their employer's Keogh plan for over 20 years and is
60 years old. The client is ready to retire and has decided to receive a lump-sum
distribution from the plan consisting of employer contributions of $60,000, plus $35,000
in interest earnings, and $15,000 of voluntary after-tax contributions made, plus $10,000
in interest earnings. How much of this distribution will be taxed?
$50,000
B
$120,000
C
$95,000
D
$105,000 - CORRECT ANSWER-105,000
Which of the following would not be required to satisfy the fingerprinting requirement?
An individual that is client facing, soliciting securities business
B
An individual that works in the back-office handling accounting records
C
An individual that works in the broker-dealer marketing department
D
A supervising principal that oversees the activities at a branch - CORRECT ANSWER-
An individual that works in the broker-dealer marketing department
Which securities offer the best protection of purchasing power?
Municipal bonds
B
Variable annuities
C
Series EE bonds
D
Fixed annuities - CORRECT ANSWER-Variable annuities
When a company offers investors an ownership position in the company, it is offering:
A
Notes
B
Stocks
C
Money market instruments
D
Bonds - CORRECT ANSWER-stocks
,An investor purchases shares of ABC Corporation on Thursday, June 1. Under regular-
way settlement, what is the settlement date for this transaction?
A
Monday, June 5
B
Thursday, June 1
C
Friday, June 2
D
Tuesday, June 6 - CORRECT ANSWER-monday
A registered representative has an appointment scheduled to discuss a variable life
insurance policy with a potential client. When must the potential client receive a copy of
the prospectus?
A
The prospectus must be delivered within 3 business days of the initial appointment
B
he prospectus must be provided when the client first arrives for the appointment
C
The prospectus must be provided prior to or at the time of the sale
D
The prospectus only needs to be furnished if the client requests a copy - CORRECT
ANSWER-c
Which of the following documents is filed with the SEC during the pre-filing period for
new securities?
A
Public Offering Price
B
Tombstone Ad
C
Registration Statement
D
Prospectus - CORRECT ANSWER-c
Which of the following is an accurate description of an American Depositary Receipt
(ADR)?
A
Shares of a foreign corporation held in a foreign branch of an American bank
B
Shares of a foreign corporation held in a foreign bank
, C
Shares of a domestic corporation held in a foreign branch of an American bank
D
Shares of a foreign corporation held in a domestic bank - CORRECT ANSWER-a
Which of the following statements regarding SEP IRAs is false?
A
Contributions to SEP IRAs are not tax deductible
B
The SEP is established by the employer
C
The contribution amount for a SEP IRA is significantly greater than for a traditional IRA
D
The SEP allows for flexible contribution amounts - CORRECT ANSWER-a
Three friends have a joint account registered as tenants in common. The account
reflects only one Social Security number. One of the friends dies and sufficient proof is
provided. What will happen to the assets in the account?
A
The decedent's assets will go to their estate
B
The decedent's portion of the account will move to the friend whose Social Security
number is on the account
C
The remaining friends will obtain the decedent's portion of the account
D
The account will be closed, and the assets will be distributed equally to each party -
CORRECT ANSWER-a
How are hedge funds structured?
A
They are structured as LLCs
B
They are structured as corporations
C
They are structured as limited partnerships
D
They are structured as general partnerships - CORRECT ANSWER-c
An investor is considering purchasing bonds and inquires about the differences and key
features of convertible and non-convertible corporate bonds. All the following are true
statements, except:
