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LET’S PRACTICE!
#1. Which type of account typically offers tax-deferred growth?
#2. A client is concerned about outliving their money. What product might you suggest?
#3. Which form must be filed to register an investment adviser with the SEC?
#4. Which of the following is considered an alternative investment?
#5. What type of analysis focuses on economic trends?
#6. A bond trading below par is priced at a:
#7. A client receives a capital gain distribution from a mutual fund. This is:
#8. A revocable trust allows the grantor to:
#9. Which document outlines the strategy and risk of a mutual fund?
#10. Which of the following is a tax-advantaged education savings account?
#11. Which is true of municipal bonds?
#12. Who typically regulates securities offerings within each state?
#13. A security with a maturity of less than one year is:
#14. A stop order helps an investor to:
#15. What is the purpose of a mutual fund’s Statement of Additional Information (SAI)?
#16. The duration of a bond measures its:
#17. Which type of retirement account allows for after-tax contributions and tax-free growth?
#18. A high R-squared value indicates:
#19. Which form must be updated if an adviser changes business location?
#20. If an adviser has custody of client funds, they must:
#21. Which of the following is an equity security?
#22. What does the term ‘fiduciary’ imply?
#23. Which investment is best for liquidity and capital preservation?
#24. What kind of fund does not trade intraday?
#25. A 1035 exchange refers to:
#26. Which investment is subject to AMT?
#27. If a client wants capital appreciation, they should invest in:
#28. A high expense ratio in a mutual fund may indicate:
#29. Who must approve changes to a mutual fund’s investment objective?
#30. Which account allows for contributions regardless of income?
#31. What is one benefit of a zero-coupon bond?
#32. Which of the following is a leading indicator?
#33. An investor concerned about reinvestment risk should avoid:
#34. Which investment allows tax-free distributions for qualified expenses?
#35. A REIT is required to distribute what percent of its taxable income?
#36. What is a primary use of duration?
#37. What is the purpose of diversification?
#38. Which type of analysis uses price patterns and volume?
#39. What is alpha in investment terms?
#40. A client’s time horizon is short. You should recommend:
#41. Which of these has the highest default risk?
#42. A balanced mutual fund contains:
#43. Which document is required before a security can be offered to the public?
#44. An investor seeking tax deductions should consider:
#45. Which strategy would best manage interest rate risk?
#46. A fund with a beta greater than 1 is:
#47. An adviser charges performance-based fees. They must:
#48. The SEC requires investment advisers to maintain records for:
#49. What’s the main goal of asset allocation?
#50. Which of the following best defines a benchmark index?
#51. An investor in the accumulation phase is most focused on:
#52. Which of the following is not a fiduciary duty?
#53. Which security is most impacted by inflation risk?
#54. Which act regulates investment advisers?
#55. A client in a high tax bracket is seeking income. Which is most appropriate?
#56. A limited partner is liable for:
#57. Which of the following is a tax-advantaged retirement plan for nonprofit employees?
#58. An investor wants to hedge against market downturns. Which strategy is suitable?
#59. What is the benefit of a Roth IRA over a Traditional IRA?
#60. Which of the following trades at NAV only once daily?
#61. The term ‘bid-ask spread’ refers to:
#62. Which ratio best measures a company’s ability to meet short-term obligations?
#63. An equity REIT primarily invests in:
#64. If a bond is downgraded by a credit agency, its price will likely:
#65. An aggressive investor is least likely to invest in:
#66. Which retirement plan has mandatory distributions at age 73?
#67. An ETF differs from a mutual fund in that:
#68. A client wants to avoid probate. Which is most appropriate?
#69. A fund with a high turnover rate might create:
#70. Which of the following is a non-qualified plan?
#71. Which order executes at the best available price?
#72. An investor using bottom-up analysis begins with:
#73. A firm that pools investor money and actively manages a portfolio is a:
#74. The SEC requires a Form ADV update:
#75. A wash sale rule prohibits claiming a loss if:
#76. Which of the following is an example of a soft dollar benefit?
#77. A client wants capital preservation and principal safety. Recommend:
#78. If an IA receives discretion, they must obtain:
#79. The formula for current yield on a bond is:
#80. Which of these is subject to reinvestment risk?
#81. A stop-limit order becomes active when:
#82. Which of the following is not a money market instrument?
#83. A growth fund primarily invests in:
#84. An investor can reduce systematic risk by:
#85. A ‘no-load’ fund means:
#86. Which entity regulates IAs with >$110 million AUM?
#87. Which ratio is most useful to value a growth company?
#88. Which financial statement shows assets and liabilities?
#89. Which of the following is a disadvantage of ETFs?
#90. An investor wants tax-deferred growth and no RMDs. Recommend:
#91. Which is true of a limited partnership?
#92. Who can contribute to a Coverdell ESA?
#93. A flat yield curve suggests:
#94. What is beta used to measure?
#95. A back-end load on a mutual fund is charged:
#96. Which of the following indicates operating efficiency?
#97. A qualified plan must meet IRS rules and:
#98. Which of the following is a characteristic of closed-end funds?
#99. What type of risk is most associated with foreign investing?
#100. An investor interested in capital gains and not income should buy:
#101. Which entity enforces securities laws in the U.S.?
#102. Which of the following is NOT considered a qualified retirement plan?
#103. Which feature is unique to zero-coupon bonds?
#104. Which form reports adviser disciplinary disclosures?
#105. What is a bond’s coupon rate?
#106. A portfolio with low beta is expected to:
#107. Which of these is a benefit of dollar-cost averaging?
#108. Which type of investment pays income but not ownership?
#109. What does the quick ratio exclude?
#110. A fiduciary must always:
#111. What is the NAV of a mutual fund?
#112. Which of the following strategies is used to limit losses?
#113. Who benefits most from a rising interest rate environment?
#114. A bond’s price will increase when:
#115. Which retirement account allows employer-only contributions?
#116. Which of the following is a lagging indicator?
#117. Which option strategy limits upside and provides income?
#118. A 12b-1 fee is charged by mutual funds to cover:
#119. What is the primary benefit of an HSA?
#120. The investment policy statement (IPS) typically includes:
#121. Which product offers both insurance and investment components?
#122. What happens to bond duration when interest rates rise?
#123. Which of the following is not subject to market risk?
#124. An investor concerned with estate planning and avoiding probate may use:
#125. The time value of money assumes:
#126. Which type of income is most commonly taxed at capital gains rates?
#127. What is one advantage of a convertible bond?
