Test Questions Flashcards
Renewal of of an agents registration must occur before _______ of each year
Dec 31st
A testamentary trust goes into effect when _____
the grantor dies
A ______ is named on a Totten Trust account
beneficiary
Excluded from gross income on an individuals tax return are _______ interest and retirement plan distributions from non-qualified accounts attributable to the ______
muni interest and payments attributable to the cost basis (principal)
Whole life is not _____ (whereas Universal is)
flexible
If an agent moves from one BD to another, the registration of that BD must be transferred ______
promptly (aka immediately)
For a sole proprietorship’s application, they must submit ________ and attest that _____
financial statement and attest that they are true
Weak for EMT states that ________ is essentially useless
technical
The two basic categories of portfolio management “styles” are _____ and ____
active and passive
A mutual fund dealer would be considered a ______
BD
Dividends on preferred are paid only in _____
cash
If you acquire a 5% stake in a company and intend to be active, you file a form 13_, if passive you file a form 13___
active = 13d; passive = 13g
The Federal Intermediate Credit Bank issues _______ at a _____
short term notes at a discount
There is NO “issuer” for fractional interests in ______ and ______ programs
oil&gas and mining
No exemption is offered for agents who offer ______
municipal securities
When securities markets have reach price equilibrium, commission costs are _______
subject to change
A capital needs analysis is used for determining need for ______
a variable form of insurance
If you expect treasuries prices to fall, you would go _____ on futures or forwards contracts
go short
Is there an account statement mailing rule if an IA does NOT take custody of client assets?
NO - quarterly if they do
If an IA is deemed “fee only”, they CANNOT accept ______
12b-1 fees
No exemption is offered to an IA who only gives advice on ______
munis
When the yield curve is inverted, the Fed is pursuing _____ monetary policy
tight
If there is a customer complaint against an agent who has withdrawn their registration, the court retains jurisdiction over that agent for _____
1 year
If you wanted to invest “globally”, would you just invest according to market cap % or using some measure of growth potential?
some measure of growth potential
529 rollovers are permitted once every _____ without a tax penatly
12 months
If you mistakenly receive a check from a customer and return it promptly, are you still required to keep a record?
Yes
If the US is running a trade deficit, then the currency is _____ relative to foreign currencies and exports would become _____ to foreign countries
US dollar will decrease relative to other currencies and exports will be less expensive to foreign countries
Interest income from “non-essential use” munis are subject to the ____
AMT
The MOST appropriate investment in a flat or falling interest rate environment would be _____
US debt
What is the best measure of a company’s solvency?
Quick ratio
If an IAR is terminated, then the ____ notifies the admin; if an agent is notified, then ______ notifies the admin
if IAR, then IA notifies; if agent, then agent AND BD notify
If a fed IAR is terminated, who notifies the admin?
the IAR
Can you invest in mutual funds in a 403(b) plan?
Yes
Which method would be used to calculate the monthly payments for a car loan?
Time value of money
Can the value of a variable annuity fall to zero because of investment performance?
NO - still get minimum insurance coverage
With any life insurance policy, the proceeds would go to a beneficiary without any ______
tax due
