Third Mock Exam Flashcards
True or false: Equity REITs are prohibited from using leverage to acquire properties
False. Typically use mortgage leverage to buy property.
True or false: When an IRA distribution is paid in equal amounts over the owner’s life, a premature distribution would be exempt from penalty
True
Over time a country’s trade deficit will lead to a decline in the value of its currency because
The country’s imports will exceed exports creating selling pressure on its currency
True or false: Sales made my fiduciaries are exempt transactions
True
Under the SEC, investment advisor registrations become effective __ days after filing and expire ___
45; never unless withdrawn, cancelled, suspended, or revoked by SEC
Under the SEC, withdrawal from registration takes effect ___ days after filing
60
Death benefit of a variable life policy must be calculated at least
Annually
BD with an office in the state must register as investment adviser if it charges for
Investment research or advice even if to institutions
Investment strategy designed to maximize risk, preserve investor’s principal, and provide somewhat stable income
Defensive
True or false: Section 529 plan is considered a security
True
Investor’s holding period return would be less than the bond’s yield to maturity if
The coupons were reinvested at a rate below the yield to maturity
Yield to maturity assumes
Reinvestment of bond’s interest at the coupon rate
Letter of intent can be backdated __ days and can be for a max period including backdating of __ months
90; 13
True or false: Some shares are held in escrow until a letter of intent is completed
True
True or false: Agent may be required to post a bond
True
True or false: Agent may turn clients over to another agent without client’s consent
True
Expense ratio =
Expenses / average annual net assets
An investment adviser firm organized as a general partnership must notify its clients ____ as to the departure of a general partner
Within a reasonable time period
Leading, lagging, or coincident indicator: Stock prices as measured by S&P 500
Leading
Leading, lagging, or coincident indicator: GDP
None
Leading, lagging, or coincident indicator: CPI
Lagging
Leading, lagging, or coincident indicator: Industrial production
Coincident
When the discount rate is increased, there is ____ in prime rate.
Increase
Private fund managers are exempt from SEC registration until their AUM in the US reach
$150 million
