Random Flashcards
T/F: non qualified annuities use after tax dollars for funding
True
>funded w/ after tax $
(All non qualified annuities don’t have RMDs)
T/F: all qualified annuities are funded with after tax dollars
True
>funded with after tax $
T/F: all non qualified annuities don’t have RMDs
True
> non qualified fixed annuity, no RMDs
When securities r sold in a restricted margin account, what portion of the proceeds goes to SMA?
50%
> 50% goes to SMA
other 50% reduce debit balance
A municipal bond dealer is making a bona fide quote. Which of the following statements regarding such a quote is true?
A)
The quote cannot represent an offer to sell bonds that the dealer does not currently own.
B)
The quote need not be one that the dealer is prepared to act upon (buy or sell).
C)
The quote must have a reasonable relationship to fair market value.
D)
The quote may not take into consideration any anticipated market movement.
C) reasonable relationship to fair market value
Explanation
A bona fide quote must have a reasonable relationship to fair market value and can be made in consideration of any anticipated market movement. A bona fide quote is one the dealer is prepared to buy or sell on, as opposed to a workable, nominal, or subject quote. On the offer side of a bona fide quote, a dealer may make an offer to sell bonds that it does not hold in its own inventory, but it must know where to obtain the bonds if they are needed to complete the transaction.
T/F: you need both a securities license and insurance license to sell variable annuities
True need both
T/F: The FDIC provides insurance for CDs up to $250,000.
True
Up to 250k
What is reinvestment risk
Risk that interest from investments can be reinvested at the same rate w/o increasing the risk
T/F: The investor of a debit spread wants the spread to “widen”
True
>Debit spread wants it to widen
>With credit spread, investor wants spread between premiums to narrow
