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LET’S PRACTICE!
#1. What type of mutual fund seeks to replicate a specific index?
#2. Which investment is most appropriate for a client seeking tax-deferred growth?
#3. A client wants exposure to international markets. Which is most appropriate?
#4. Which of the following is true about stop-limit orders?
#5. A rising yield curve typically suggests:
#6. An aggressive growth investor is least likely to invest in:
#7. The Securities Act of 1933 primarily regulates:
#8. Which retirement plan allows catch-up contributions after age 50?
#9. The main risk of holding foreign securities is:
#10. In technical analysis, support is:
#11. Which of the following is most suitable for a short-term investment goal?
#12. Who enforces compliance with SEC regulations at the firm level?
#14. What is a REIT required to distribute annually to avoid corporate taxation?
#15. Which of these is a taxable event?
#16. Which investment product is most likely to use leverage?
#17. A callable bond is most likely to be called when:
#18. A client is in a high tax bracket. Which is most tax-efficient?
#19. The annual contribution limit for a Coverdell ESA is:
#20. An advantage of an LLC over a C corporation is:
#21. The Investment Company Act of 1940 requires mutual funds to:
#22. The standard settlement for equity trades is:
#23. An investor looking for diversification might purchase:
#24. An investor buys a bond at a premium. What can they expect at maturity?
#25. If a client wants steady income and low risk, you recommend:
#26. Which of the following is not a money market instrument?
#27. An S corporation must:
#28. If a mutual fund has a high turnover rate, this usually implies:
#29. A brokerage account with margin privileges allows:
#30. Which type of analysis uses economic data and interest rates?
#31. Which type of risk is most associated with investing in a foreign country?
#32. An investor wants a tax deduction today and tax-deferred growth. Which account is suitable?
#33. The PEG ratio adjusts the P/E ratio by:
#34. Which strategy would be most appropriate in a declining market?
#35. What is a fiduciary duty?
#36. What is the main purpose of diversification?
#37. Which of these is a characteristic of growth stocks?
#38. An investor in a limited partnership is typically liable for:
#39. A 403(b) plan is available to:
#40. An investor seeking inflation protection might invest in:
#41. Which statement is true regarding a bond’s yield to call?
#42. A qualified plan must:
#43. A large-cap mutual fund typically invests in:
#44. What does a high beta indicate?
#45. What is the minimum net worth for accredited investors (excluding primary residence)?
#46. Which of these is a characteristic of UITs?
#47. Which option strategy has unlimited loss potential?
#48. The time value of an option is greatest when:
#49. A bond with a higher coupon will have:
#50. The discount rate used in DCF analysis is often based on:
#51. What is an example of systemic risk?
#52. What is the main benefit of a Roth 401(k)?
#53. Who must approve changes to a mutual fund’s investment objective?
#54. A portfolio with high alpha indicates:
#55. Which of these is an example of a tangible asset?
#56. A registered investment adviser must deliver Form ADV Part 2:
#57. What is a common feature of convertible bonds?
#58. Which of the following is NOT required in a prospectus?
#59. How often must an IA update Form ADV?
#60. Which is a liquidity ratio?
#61. A zero-beta portfolio would be expected to:
#62. Which of the following provides professional management and diversification?
#63. The intrinsic value of a call option is:
#64. An investor using fundamental analysis is most concerned with:
#65. A corporation with excess cash may issue:
#66. Which of these accounts is best for education expenses?
#67. An investment adviser’s brochure must include:
#68. Which of the following would be considered a defensive stock?
#69. Which is true of preferred stock?
#70. The least suitable investment for a conservative client is:
#71. A T-bill is issued at:
#72. What happens to bond prices when interest rates rise?
#73. An example of a non-depository institution is:
#74. A client concerned with estate taxes might consider:
#75. Which of the following has the least market risk?
#76. A margin account requires a minimum deposit of:
#77. An investor who wants tax-free withdrawals in retirement should choose:
#78. Who is responsible for enforcing SEC rules within a firm?
#79. Which of the following best describes duration?
#80. An equity security that gives the holder the right to buy shares at a set price is a:
#81. Which of the following is most appropriate for emergency savings?
#82. An investor with a long-term horizon and high risk tolerance should avoid:
#83. Which of the following is a feature of exchange-traded notes (ETNs)?
#84. A client owns a variable annuity. The returns are based on:
#85. A capital gain occurs when:
#86. Which of these is an unsystematic risk?
#87. An RIA must disclose disciplinary history on:
#88. In a revocable trust, who retains control of assets?
#89. Which index tracks small-cap U.S. stocks?
#90. Which retirement plan is funded only by the employer?
#91. An investor concerned about principal loss should avoid:
#92. When are mutual fund orders executed?
#93. An example of a soft dollar arrangement is:
#94. Which of the following securities is NOT traded on an exchange?
#95. To determine real return, subtract inflation from:
#96. A mutual fund breakpoint applies to:
#97. Which type of bond pays no interest until maturity?
#98. If a client needs income, which investment is best?
#99. The major benefit of tax-loss harvesting is to:
#100. Which of the following best describes a cyclical stock?
#101. An investor sells stock short. They expect the stock to:
#102. A simplified employee pension (SEP) IRA is most suitable for:
#103. Which entity insures bank deposits?
#104. Which of these is a pass-through entity for tax purposes?
#105. Which strategy involves buying multiple securities to offset specific risks?
#106. What’s the maximum contribution to a traditional IRA for someone under 50 (2025)?
#107. A portfolio with low standard deviation indicates:
#108. Which federal law requires registration of new securities offerings?
#109. The dividend discount model (DDM) is used to value:
#110. What is the main risk of mortgage-backed securities?
#111. Which of the following is an example of a derivative?
#112. Which plan is designed for employees of public schools?
#113. Which asset class generally offers the best hedge against long-term inflation?
#114. Which document outlines the business relationship between an adviser and client?
#115. Which metric measures profitability?
#116. When does a buy stop order become a market order?
#117. An ETF is different from a mutual fund because:
#118. Which of the following risks is highest with a callable bond?
#119. What does a high Sharpe ratio indicate?
#120. Which business structure limits owner liability and allows pass-through taxation?
#121. Which investment is most appropriate for a risk-averse investor?
#122. How often must mutual funds send financial reports to shareholders?
#123. Which form is used to register a new investment adviser with the SEC?
#124. A fund with a low R-squared is:
#125. An investor concerned about capital preservation should avoid:
#126. An investor using top-down analysis starts by examining:
#127. A client asks for written disclosure of your compensation. You must:
#128. Which of these allows the donor to retain control until death?
#129. Which investment has the highest liquidity risk?
