SERIES 66 - EXAM FX FINAL
QUESTIONS # 1, Series 66- EXAM FX
FINAL QUESTIONS # 2 ( Latest 2025 )
An agent recommends several securities that he deems suitable for the
customer. The customer rejects all of these recommendations and
wants to place an order for a security that the agent feels is unsuitable.
The agent:
A. Is prohibited from executing the order
B. May execute the order, but should obtain a written statement that
the order was unsolicited and the agent did not recommend the
security
C. May execute the order only if the client has sufficient funds in the
account prior to placing the order
D. Should execute the order since he is required by law - CORRECT
ANSWERS ✔✔B. May execute the order, but should obtain a
written statement that the order was unsolicited and the agent did not
recommend the security
- The agent may execute the order, but it would be prudent to obtain a
written statement that the order was unsolicited and not
recommended by the agent. Also, the trade ticket should be marked
"unsolicited".
Randy is a broker who enjoys doing investment research much more
than prospecting for sales. His friend Any is just the opposite as he
loves talking to new people and hates numbers. They have agreed that
,SERIES 66 - EXAM FX FINAL
QUESTIONS # 1, Series 66- EXAM FX
FINAL QUESTIONS # 2 ( Latest 2025 )
Randy will do all the research work if Andy will send sales Randy's way
when possible. Which of the following is true regarding this
relationship?
A. Such a relationship must be tied to a written contract between the
broker/dealer and the advisory firm involved and must be binding for
all transactions
B. This form of alliance is considered a unilateral agreement since the
broker must rely on the adviser's goodwill to secure any future
compensation
C. This is considered a soft dollar alliance and must be monitored
periodically to avoid the potential for conflicts of interest
D. Randy must file a Form AD-1 with his broker/dealer listing Andy as
his advisory partner for the "mated" transactions - CORRECT ANSWERS
✔✔C. This is considered a soft dollar alliance and must be monitored
periodically to avoid the potential for conflicts of interest
- Since this is a soft dollar alliance, the risk of conflict of interest is
inherent regardless of the parties involved and must be monitored for
such.
Which of the following best describes regulatory risk?
,SERIES 66 - EXAM FX FINAL
QUESTIONS # 1, Series 66- EXAM FX
FINAL QUESTIONS # 2 ( Latest 2025 )
A. Purchase of a security at an inappropriate time
B. Security falling out of political favor
C. Currency exchange rates affecting foreign investments
D. Changes in law that can potentially affect a security - CORRECT
ANSWERS ✔✔D. Changes in law that can potentially affect a
security
- Regulatory risk, also known as legislative risk, is associated with
changes in law that can potentially affect a security, an industry or a
country
Sector rotating is: - CORRECT ANSWERS ✔✔Adjusting a portfolio
allocation based on economic conditions.
- Sector rotating involves moving a portfolio's allocation from one
sector to another based on economic conditions or seasonal trends
An investment adviser has identified what he perceives to be an
excellent investment opportunity for some of his client. He made calls
to the selected clients and told them that he believes that the
investment will have over 12% return this year and recommended they
invest. Which of the following is true concerning the adviser's
statement?
, SERIES 66 - EXAM FX FINAL
QUESTIONS # 1, Series 66- EXAM FX
FINAL QUESTIONS # 2 ( Latest 2025 )
A. This is considered an example of an adviser doing performance
research which is part of the advisory services contract
B. Such statements may not be made since they imply a specific
performance of a security for which advice is being given
C. The advisor may not make this kind of statement to his clients unless
it is part of a portfolio of investments and not a single security
D. The adviser has not violated any provisions of securities laws as he
was only stating an opinion and not giving formal advice - CORRECT
ANSWERS ✔✔B. Such statements may not be made since they
imply a specific performance of a security for which advice is being
given
- An adviser may not make any statement that implies a specific
performance of a security for which advice was given. An adviser may
not guarantee a specific result based on advice given for a portfolio of
investments.
HSAs are designed to - CORRECT ANSWERS ✔✔Help individuals
save for qualified health expenses.
- HSAs help individuals save for qualified out-of-pocket health care
expenses such as the deductible expense from a high deductible health
plan
QUESTIONS # 1, Series 66- EXAM FX
FINAL QUESTIONS # 2 ( Latest 2025 )
An agent recommends several securities that he deems suitable for the
customer. The customer rejects all of these recommendations and
wants to place an order for a security that the agent feels is unsuitable.
The agent:
A. Is prohibited from executing the order
B. May execute the order, but should obtain a written statement that
the order was unsolicited and the agent did not recommend the
security
C. May execute the order only if the client has sufficient funds in the
account prior to placing the order
D. Should execute the order since he is required by law - CORRECT
ANSWERS ✔✔B. May execute the order, but should obtain a
written statement that the order was unsolicited and the agent did not
recommend the security
- The agent may execute the order, but it would be prudent to obtain a
written statement that the order was unsolicited and not
recommended by the agent. Also, the trade ticket should be marked
"unsolicited".
Randy is a broker who enjoys doing investment research much more
than prospecting for sales. His friend Any is just the opposite as he
loves talking to new people and hates numbers. They have agreed that
,SERIES 66 - EXAM FX FINAL
QUESTIONS # 1, Series 66- EXAM FX
FINAL QUESTIONS # 2 ( Latest 2025 )
Randy will do all the research work if Andy will send sales Randy's way
when possible. Which of the following is true regarding this
relationship?
A. Such a relationship must be tied to a written contract between the
broker/dealer and the advisory firm involved and must be binding for
all transactions
B. This form of alliance is considered a unilateral agreement since the
broker must rely on the adviser's goodwill to secure any future
compensation
C. This is considered a soft dollar alliance and must be monitored
periodically to avoid the potential for conflicts of interest
D. Randy must file a Form AD-1 with his broker/dealer listing Andy as
his advisory partner for the "mated" transactions - CORRECT ANSWERS
✔✔C. This is considered a soft dollar alliance and must be monitored
periodically to avoid the potential for conflicts of interest
- Since this is a soft dollar alliance, the risk of conflict of interest is
inherent regardless of the parties involved and must be monitored for
such.
Which of the following best describes regulatory risk?
,SERIES 66 - EXAM FX FINAL
QUESTIONS # 1, Series 66- EXAM FX
FINAL QUESTIONS # 2 ( Latest 2025 )
A. Purchase of a security at an inappropriate time
B. Security falling out of political favor
C. Currency exchange rates affecting foreign investments
D. Changes in law that can potentially affect a security - CORRECT
ANSWERS ✔✔D. Changes in law that can potentially affect a
security
- Regulatory risk, also known as legislative risk, is associated with
changes in law that can potentially affect a security, an industry or a
country
Sector rotating is: - CORRECT ANSWERS ✔✔Adjusting a portfolio
allocation based on economic conditions.
- Sector rotating involves moving a portfolio's allocation from one
sector to another based on economic conditions or seasonal trends
An investment adviser has identified what he perceives to be an
excellent investment opportunity for some of his client. He made calls
to the selected clients and told them that he believes that the
investment will have over 12% return this year and recommended they
invest. Which of the following is true concerning the adviser's
statement?
, SERIES 66 - EXAM FX FINAL
QUESTIONS # 1, Series 66- EXAM FX
FINAL QUESTIONS # 2 ( Latest 2025 )
A. This is considered an example of an adviser doing performance
research which is part of the advisory services contract
B. Such statements may not be made since they imply a specific
performance of a security for which advice is being given
C. The advisor may not make this kind of statement to his clients unless
it is part of a portfolio of investments and not a single security
D. The adviser has not violated any provisions of securities laws as he
was only stating an opinion and not giving formal advice - CORRECT
ANSWERS ✔✔B. Such statements may not be made since they
imply a specific performance of a security for which advice is being
given
- An adviser may not make any statement that implies a specific
performance of a security for which advice was given. An adviser may
not guarantee a specific result based on advice given for a portfolio of
investments.
HSAs are designed to - CORRECT ANSWERS ✔✔Help individuals
save for qualified health expenses.
- HSAs help individuals save for qualified out-of-pocket health care
expenses such as the deductible expense from a high deductible health
plan
