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LET’S PRACTICE!
#1. Which of the following investments is subject to market risk?
#2. What is the main feature of a UIT (Unit Investment Trust)?
#3. Which tax form reports investment interest income?
#4. An investor buys a call option. Their maximum loss is:
#5. A long-term investor focused on capital appreciation should consider:
#6. Which of these is a characteristic of an S corporation?
#7. Which of the following can be traded intraday?
#8. An adviser using discretion must receive authorization:
#9. A client seeks a diversified investment with automatic rebalancing. You suggest:
#10. Which of the following bond types carries the most reinvestment risk?
#11. Which statement is TRUE regarding 12b-1 fees?
#12. Which asset is least appropriate for a conservative investor?
#13. Which type of order guarantees execution but not price?
#14. Which of the following is NOT included in a personal balance sheet?
#15. Which of the following is NOT a qualified retirement plan?
#16. What does a high P/E ratio typically suggest about a stock?
#17. An investor who expects a decline in a stock’s price should:
#18. A client wants to invest in commodities. You suggest:
#19. The main purpose of an estate plan is to:
#20. Which tax is triggered at death based on asset value?
#21. Which plan allows for catch-up contributions?
#22. A non-qualified annuity grows:
#23. Who regulates mutual fund advertisements?
#24. Which of the following securities is most likely to pay interest monthly?
#25. What is a key benefit of a Roth 401(k) over a traditional 401(k)?
#26. A client who is 60 years old wants guaranteed lifetime income. You recommend:
#27. Which of the following is most impacted by exchange rate risk?
#28. A municipal bond backed by taxes is called:
#29. Which is true of an investment policy statement (IPS)?
#30. A stop order becomes a market order when:
#31. A client seeking tax-free income should consider:
#32. An investor in a high tax bracket is least likely to invest in:
#33. An option writer who owns the underlying stock is executing a:
#34. The federal gift tax exclusion for 2024 is approximately:
#35. What type of trust allows changes during the grantor’s lifetime?
#36. Which document is filed when an adviser exits the business?
#37. The bid-ask spread is typically smallest in:
#38. Which of the following investments can trade below NAV?
#39. A registered representative who switches firms must file:
#40. What is the main advantage of an index fund?
#41. The yield to maturity of a bond reflects:
#42. Which of the following best reduces systematic risk?
#43. A financial plan should begin with:
#44. The tax treatment of capital gains for assets held over a year is:
#45. What is a key feature of a 529 plan?
#46. An investment adviser’s duty of loyalty requires:
#47. A firm must keep customer account records for at least:
#48. The beta of a diversified portfolio is closest to:
#49. A limited partner’s liability is limited to:
#50. Which investment has the highest potential for growth?
#51. Which form reports sales proceeds from securities transactions?
#52. Who enforces anti-fraud provisions under the Securities Act of 1933?
#53. A client using a buy-and-hold strategy is primarily seeking:
#54. What is the effect of leverage in an ETF?
#55. Which of the following is most associated with passive management?
#56. An investor holding a bond until maturity will receive:
#57. Which of the following securities is traded on margin?
#58. What does the term ‘duration’ measure?
#59. Which of these best describes a callable bond?
#60. A client wants to save for a child’s education and retain control. Recommend:
#61. A hedge fund is typically suitable for:
#62. When must Form ADV Part 2 be delivered to a client?
#63. Who determines the ex-dividend date for listed securities?
#64. An order that executes only if a certain price is reached is a:
#65. Which risk affects all investments and cannot be diversified away?
#66. Which is true of Treasury STRIPS?
#67. Which entity issues TIPS?
#68. Which of the following is NOT included in GDP?
#69. Which type of analysis examines economic and industry conditions?
#70. The NAV of a mutual fund increases when:
#71. A fiduciary under ERISA must act:
#72. A bond trading above par will have:
#73. What does a protective put strategy provide?
#74. Which of the following is true of interval funds?
#75. A beneficiary of a Roth IRA must begin RMDs:
#76. Which of the following can reduce the cost basis of a mutual fund?
#77. A client with no tax concerns and seeking high income might prefer:
#78. How often must a firm update its Form ADV?
#79. An option contract covers how many shares of stock?
#80. An ETF’s price is determined by:
#81. Which regulation governs advertising by investment advisers?
#82. Which of the following is exempt from SEC registration?
#83. What type of bond is secured by the issuer’s full faith and credit?
#84. Which is the best description of tactical asset allocation?
#85. The marketability of a security refers to:
#86. A ‘bull spread’ is created by:
#87. A margin account is governed by which rule?
#88. A company’s balance sheet includes:
#89. Who must approve changes in a mutual fund’s investment objective?
#90. Which of the following is NOT considered a derivative?
#91. A mutual fund’s turnover ratio relates to:
#92. Which type of risk is most associated with foreign bonds?
#93. Which of the following is least likely to be a fiduciary under ERISA?
#94. The holding period for long-term capital gains is:
#95. The primary purpose of diversification is to:
#96. A money market fund primarily invests in:
#97. Which of the following is NOT a feature of a limited partnership?
#98. Which of the following requires SEC registration?
#99. Which economic theory states that markets incorporate all known information into prices?
#100. A client who wants capital preservation and inflation protection should invest in:
#101. Under Regulation FD, publicly traded companies must:
#102. An investment adviser’s brochure supplement (Form ADV Part 2B) focuses on:
#103. Which of the following securities settles T+1?
#104. An investor wanting exposure to international developed markets with currency hedging could buy:
#105. The primary risk of purchasing inverse ETFs for more than one day is:
#106. Which retirement account consists solely of after‑tax employee contributions with no employer match?
#107. Which corporate action requires shareholder approval?
#108. A bond with negative convexity will:
#109. Under the Uniform Securities Act, which is NOT a security?
#110. The Bloomberg Barclays Aggregate Index is commonly used as a benchmark for:
#111. When an ETF trades at a discount to NAV, authorized participants may:
#112. Which ratio measures the percentage of earnings paid out as dividends?
#113. In a 60/40 portfolio, rebalancing annually helps to:
#114. A ‘qualified charitable distribution’ can be made from:
#115. Which option strategy profits if volatility decreases?
#116. If an investor is in a 22% federal tax bracket, what is the tax‑equivalent yield of a municipal bond yielding 4%?
#117. The wash‑sale rule disallows a loss deduction if repurchased within:
#118. Which of the following is true of a variable universal life policy?
#119. Which economic indicator is considered leading?
#120. An investment adviser who uses a third‑party solicitor must provide clients with:
#121. An investor concerned about foreign withholding taxes on dividends should invest through:
#122. Which of the following is characteristic of an ESOP?
#123. A stock with a beta of 0.7 would be expected to:
#124. In bond analysis, the coverage ratio compares:
#125. Which of the following is NOT a benefit of ETFs over mutual funds?
#126. A ‘life settlement’ transaction involves:
#127. SEC Form 13F must be filed by institutional managers with at least:
#128. Which risk metric captures downside deviation below a threshold?
