Series 6 Knopman Questions with Correct Answers
After placing a sell order, a customer is told that the order will be
executed at the NAV next calculated. The customer is selling which of
the following? Correct Answer-Either shares in an open-end company or
UIT units
The wife of a customer who has an individual IRA account calls the
broker-dealer to request that the account statements be held by the firm
while the family is vacationing in Europe over the summer. In this
situation the firm is permitted to Correct Answer-continue to mail the
statements to the customer's home unless the husband makes the request.
At account opening, a customer is asked to provide the name of a trusted
contact and refuses to do so. What should you do? Correct Answer-
Proceed with opening the account and provide written disclosure about
the purpose of the trusted contact
All of the following fees are deducted annually from the assets of a UIT
EXCEPT Correct Answer-C&D fee
The pre-dispute arbitration clause that is signed by a registered
representative when the Form U-4 is completed. It requires arbitration as
a means of settling a monetary dispute
I. involving employment discrimination
II. between the representative and another representative at the firm
III. between the representative and her supervisor Correct Answer-II and
III only
,All of the following are typical holdings in a mutual fund with an
income objective EXCEPT Correct Answer-Short stock positions
Acme Fund has an NAV per share of $9.20 and an 8% sales load. What
is the dollar amount of the sales charge? Correct Answer-$0.80
POP = (NAV/ 100% - SC%) = $9.20/.92 = $10.00To find the dollar
amount of sales charge take the POP and subtract it by the NAV. $10.00
- $9.20 = $0.80.
Which of the following features of a mutual fund also apply to purchases
of units in UITs? Correct Answer-Breakpoint discounts
To be federally income tax-free, a Roth distribution must be Correct
Answer-Qualified
Which of the following comparisons best describes the primary
difference between a defined benefit plan and a defined contribution
plan? Correct Answer-Defined contribution plans are not concerned with
the amount of income payable to participants at retirement, but defined
benefit plans pay a specified amount at retirement
Which of the following types of brokerage accounts will NOT specify a
beneficiary? Correct Answer-Corporation
Assume that a mutual fund has a dividend yield of 4% in July. By
September, its NAV has declined by 20% while its dividend remains
, unchanged. What will be the impact of the price decline on dividend
yield? Correct Answer-It will increase
An investor signs a letter of intent to invest $25,000 within the period
covered by the letter. Which of the following statements is TRUE?
Correct Answer-The reduction in sales charge applies to all investments
within the fund family
Which of the following portfolios is the best recommendation for a
customer who would like to maximize tax free investment income?
Correct Answer-25% special tax bonds, 25% revenue bonds, 25%
double barreled bonds, 25% GO bonds
How does an ESOP invest contributions? Correct Answer-In employer
securities
All of the following investments are free of surrender charges EXCEPT
Correct Answer-UIT shares
Variable annuities are subject to which of the following securities
regulations?
I. The Investment Company Act of 1940
II. The Investment Advisors Act of 1940
III. The Securities Exchange Act of 1934 Correct Answer-I, II and IIII,
After placing a sell order, a customer is told that the order will be
executed at the NAV next calculated. The customer is selling which of
the following? Correct Answer-Either shares in an open-end company or
UIT units
The wife of a customer who has an individual IRA account calls the
broker-dealer to request that the account statements be held by the firm
while the family is vacationing in Europe over the summer. In this
situation the firm is permitted to Correct Answer-continue to mail the
statements to the customer's home unless the husband makes the request.
At account opening, a customer is asked to provide the name of a trusted
contact and refuses to do so. What should you do? Correct Answer-
Proceed with opening the account and provide written disclosure about
the purpose of the trusted contact
All of the following fees are deducted annually from the assets of a UIT
EXCEPT Correct Answer-C&D fee
The pre-dispute arbitration clause that is signed by a registered
representative when the Form U-4 is completed. It requires arbitration as
a means of settling a monetary dispute
I. involving employment discrimination
II. between the representative and another representative at the firm
III. between the representative and her supervisor Correct Answer-II and
III only
,All of the following are typical holdings in a mutual fund with an
income objective EXCEPT Correct Answer-Short stock positions
Acme Fund has an NAV per share of $9.20 and an 8% sales load. What
is the dollar amount of the sales charge? Correct Answer-$0.80
POP = (NAV/ 100% - SC%) = $9.20/.92 = $10.00To find the dollar
amount of sales charge take the POP and subtract it by the NAV. $10.00
- $9.20 = $0.80.
Which of the following features of a mutual fund also apply to purchases
of units in UITs? Correct Answer-Breakpoint discounts
To be federally income tax-free, a Roth distribution must be Correct
Answer-Qualified
Which of the following comparisons best describes the primary
difference between a defined benefit plan and a defined contribution
plan? Correct Answer-Defined contribution plans are not concerned with
the amount of income payable to participants at retirement, but defined
benefit plans pay a specified amount at retirement
Which of the following types of brokerage accounts will NOT specify a
beneficiary? Correct Answer-Corporation
Assume that a mutual fund has a dividend yield of 4% in July. By
September, its NAV has declined by 20% while its dividend remains
, unchanged. What will be the impact of the price decline on dividend
yield? Correct Answer-It will increase
An investor signs a letter of intent to invest $25,000 within the period
covered by the letter. Which of the following statements is TRUE?
Correct Answer-The reduction in sales charge applies to all investments
within the fund family
Which of the following portfolios is the best recommendation for a
customer who would like to maximize tax free investment income?
Correct Answer-25% special tax bonds, 25% revenue bonds, 25%
double barreled bonds, 25% GO bonds
How does an ESOP invest contributions? Correct Answer-In employer
securities
All of the following investments are free of surrender charges EXCEPT
Correct Answer-UIT shares
Variable annuities are subject to which of the following securities
regulations?
I. The Investment Company Act of 1940
II. The Investment Advisors Act of 1940
III. The Securities Exchange Act of 1934 Correct Answer-I, II and IIII,
