4
Mastery EXAM 2025 | ALL CURRENT
EXAM VERSIONS 2025 | ACCURATE
REAL EXAM QUESTIONS AND
ANSWERS | ACCURATE AND VERIFIED
FOR GUARANTEED PASS | GRADED A
A registered representative is permitted to work from a home residence conducting
normal business activities. Regarding the arrangement, all of the following statements
are true except
A) the address and telephone number of this location may not be advertised.
B) the location would be subject to a premise visit and review by a principal of the firm.
C) taking customer orders for the purchase and sale of securities would be permitted
at this location.
D) approval of the member firm's self-regulatory organization (SRO) is required. -
ANSWER A
If the Midlands Pencil Corporation has issued several different debt securities, an
investor would expect the lowest income stream from
A) ordinary debentures.
B) speculative bonds.
C) subordinated debentures.
D) convertible debentures.
- ANSWER A) convertible debentures.
Although convertible debentures have many positive features for the investor, the major
negative is that, in exchange for those benefits, the investor accepts a lower rate of
interest.
Anna, a manager for Great Plains Securities, resigns her position and surrenders her
principal registrations in order to return to being a registered representative with no
management duties. She will continue at the same firm and in the same office. How
many days does the firm have to file Form U5?
A) 45 days
B) 10 days
C) 30 days
D) 60 days
- ANSWER C
4
,4
All of the following are U.S. government agency debt securities except
A) Government National Mortgage Association securities.
B) Farm Credit Administration securities.
C) Federal National Mortgage Association securities.
D) Treasury notes.
- ANSWER D
The regulatory element of a representative's continuing education will need to be
completed within 120 days of certain anniversaries of their licensing. Which of the
following is not an anniversary where a representative would be required to complete
the regulatory element of their continuing education?
A) 3rd anniversary
B) 11th anniversary
C) 5th anniversary
D) 2nd anniversary
- ANSWER D
Janet Johnson, a registered representative and licensed insurance agent, meets in the
home with a 50-year-old widower to discuss what to do with life insurance proceeds of
his deceased spouse. The widower is apprehensive about liquidity. Johnson hands him
a prospectus for a variable annuity and recommends the funds be conservatively
invested in separate accounts within the annuity. Johnson takes time to carefully explain
and illustrate a 6% gross return over a 20-year period and further explains that earnings
will grow tax deferred. What did Johnson do wrong?
A) The separate accounts should have been presented as mutual funds.
B) Johnson recommended a variable annuity to an individual who is looking for liquidity.
C) Johnson waited until the presentation to deliver the prospectus.
D) Nothing. Johnson made a careful, individualized presentation of a securities product.
- ANSWER B
Representative Gary Willikers recently passed his licensing exams and was hired by
Seacoast Securities, Inc., a broker-dealer member firm. He was recommended to the
position by his Uncle George, who has worked for the firm for over a decade. Gary
would like to send out a mail advertisement to help generate new customers. In order to
do this, Gary will need approval from a principal of the firm, and the communication
must be filed with
A) the SEC within 10 days of use.
B) FINRA within 10 days of use.
C) FINRA at least 30 days before use.
D) D) FINRA at least 10 days before use.
- ANSWER D
4
, 4
Which of the following persons would be allowed to purchase shares of an initial public
offering (IPO)?
A) The grandparent of a member broker-dealer employee
B) The father of a member broker-dealer employee
C) An attorney acting on behalf of the managing underwriter
D) Someone owning 15% of a member broker-dealer
- ANSWER A
In a cash account, an investor must pay for a purchase by
A) depositing at least 50% of the purchase price by
settlement.
B) having the cash available in the account.
C) depositing the entire amount of the trade by the settlement day.
D) having at least 50% of the trade in the account
- ANSWER C
he Achieving a Better Life Experience (ABLE) Act of 2014 enabled the establishment of
ABLE accounts for certain individuals. Which of the following statements regarding
ABLE accounts is false?
A) Income earned in an ABLE account is not taxed.
B) Contributions to ABLE accounts are tax deductible.
C) Eligibility is limited to those where the onset of a significant disability occurred before
the age of 26.
D) Contributions can be made by any person, including the account beneficiary. -
ANSWER A
Your customer notices that the Japanese yen puts he is considering are European style
and asks you what that means. Which of the following statements is correct?
A) This means that the customer may enter exercise instructions at any time.
B) This means that the options will automatically exercise at expiration.
C) This means that exercise instructions may only be entered if the intrinsic value of the
option is within 10% of the strike price.
D) This means that the option may only be exercised on the last trading day before
expiration.
- ANSWER D
If a 40-year-old customer earns $65,000 a year and his 38-year-old spouse earns
$40,000 a year, how much may they contribute to an individual retirement account
(IRA)?
A) Only the higher wage earner may contribute to an IRA.
B) They may each contribute 100% of earned income or the maximum annual allowable
dollar limit, whichever is less.
C) They may not contribute because their combined income is too high.
4
Mastery EXAM 2025 | ALL CURRENT
EXAM VERSIONS 2025 | ACCURATE
REAL EXAM QUESTIONS AND
ANSWERS | ACCURATE AND VERIFIED
FOR GUARANTEED PASS | GRADED A
A registered representative is permitted to work from a home residence conducting
normal business activities. Regarding the arrangement, all of the following statements
are true except
A) the address and telephone number of this location may not be advertised.
B) the location would be subject to a premise visit and review by a principal of the firm.
C) taking customer orders for the purchase and sale of securities would be permitted
at this location.
D) approval of the member firm's self-regulatory organization (SRO) is required. -
ANSWER A
If the Midlands Pencil Corporation has issued several different debt securities, an
investor would expect the lowest income stream from
A) ordinary debentures.
B) speculative bonds.
C) subordinated debentures.
D) convertible debentures.
- ANSWER A) convertible debentures.
Although convertible debentures have many positive features for the investor, the major
negative is that, in exchange for those benefits, the investor accepts a lower rate of
interest.
Anna, a manager for Great Plains Securities, resigns her position and surrenders her
principal registrations in order to return to being a registered representative with no
management duties. She will continue at the same firm and in the same office. How
many days does the firm have to file Form U5?
A) 45 days
B) 10 days
C) 30 days
D) 60 days
- ANSWER C
4
,4
All of the following are U.S. government agency debt securities except
A) Government National Mortgage Association securities.
B) Farm Credit Administration securities.
C) Federal National Mortgage Association securities.
D) Treasury notes.
- ANSWER D
The regulatory element of a representative's continuing education will need to be
completed within 120 days of certain anniversaries of their licensing. Which of the
following is not an anniversary where a representative would be required to complete
the regulatory element of their continuing education?
A) 3rd anniversary
B) 11th anniversary
C) 5th anniversary
D) 2nd anniversary
- ANSWER D
Janet Johnson, a registered representative and licensed insurance agent, meets in the
home with a 50-year-old widower to discuss what to do with life insurance proceeds of
his deceased spouse. The widower is apprehensive about liquidity. Johnson hands him
a prospectus for a variable annuity and recommends the funds be conservatively
invested in separate accounts within the annuity. Johnson takes time to carefully explain
and illustrate a 6% gross return over a 20-year period and further explains that earnings
will grow tax deferred. What did Johnson do wrong?
A) The separate accounts should have been presented as mutual funds.
B) Johnson recommended a variable annuity to an individual who is looking for liquidity.
C) Johnson waited until the presentation to deliver the prospectus.
D) Nothing. Johnson made a careful, individualized presentation of a securities product.
- ANSWER B
Representative Gary Willikers recently passed his licensing exams and was hired by
Seacoast Securities, Inc., a broker-dealer member firm. He was recommended to the
position by his Uncle George, who has worked for the firm for over a decade. Gary
would like to send out a mail advertisement to help generate new customers. In order to
do this, Gary will need approval from a principal of the firm, and the communication
must be filed with
A) the SEC within 10 days of use.
B) FINRA within 10 days of use.
C) FINRA at least 30 days before use.
D) D) FINRA at least 10 days before use.
- ANSWER D
4
, 4
Which of the following persons would be allowed to purchase shares of an initial public
offering (IPO)?
A) The grandparent of a member broker-dealer employee
B) The father of a member broker-dealer employee
C) An attorney acting on behalf of the managing underwriter
D) Someone owning 15% of a member broker-dealer
- ANSWER A
In a cash account, an investor must pay for a purchase by
A) depositing at least 50% of the purchase price by
settlement.
B) having the cash available in the account.
C) depositing the entire amount of the trade by the settlement day.
D) having at least 50% of the trade in the account
- ANSWER C
he Achieving a Better Life Experience (ABLE) Act of 2014 enabled the establishment of
ABLE accounts for certain individuals. Which of the following statements regarding
ABLE accounts is false?
A) Income earned in an ABLE account is not taxed.
B) Contributions to ABLE accounts are tax deductible.
C) Eligibility is limited to those where the onset of a significant disability occurred before
the age of 26.
D) Contributions can be made by any person, including the account beneficiary. -
ANSWER A
Your customer notices that the Japanese yen puts he is considering are European style
and asks you what that means. Which of the following statements is correct?
A) This means that the customer may enter exercise instructions at any time.
B) This means that the options will automatically exercise at expiration.
C) This means that exercise instructions may only be entered if the intrinsic value of the
option is within 10% of the strike price.
D) This means that the option may only be exercised on the last trading day before
expiration.
- ANSWER D
If a 40-year-old customer earns $65,000 a year and his 38-year-old spouse earns
$40,000 a year, how much may they contribute to an individual retirement account
(IRA)?
A) Only the higher wage earner may contribute to an IRA.
B) They may each contribute 100% of earned income or the maximum annual allowable
dollar limit, whichever is less.
C) They may not contribute because their combined income is too high.
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