Questions I Got Wrong Flashcards
(95 cards)
The minimum dollar amount required for a negotiable CD is:
$100,000
What would lead to a lower dividend yield?
Stable dividend, rising market price
When you were single, you purchased a variable life insurance policy. You have since gotten married and want to exchange it for a whole life policy to protect your family. How long from the policies issuance do you have to make the conversion?
24 months
As a registered municipal bond representative for your broker dealer, you have been given discretion over the account of a physician residing in New York. The client’s profile shows that he is conservative, avoids investment risk, and seeks long-term growth potential. What do you deem to be the most suitable to include in the physician’s portfolio?
New York transit authority revenue bond rated Aa
Under the front load contribution method for 529 plans, the maximum amount that may be contributed tax-free by a couple is:
$110,000
A long established mutual fund company wants to place ads in the financial papers to try to attract new investors, what do they need to do with FINRA?
The ad must be filed with FINRA 10 days after it is used
Outstanding stock is best described as:
The number of shares that the public owns
What percentage of employee contributions to a 403b plan are vested after one year?
All employee contributions vest immediately
What is the maximum maturity for a CD?
There’s no maximum maturity
An underwriter that is taking a new issue of securities to market can do what prior to the following date?
Prepare the registration statement
The provisions of ERISA would apply to:
The profit sharing plan
What will receive a MIG rating?
Tax anticipation note
Discounting and investments expected cash flows to present value determines
Net present value
What type of investment have historically shown a great deal of exposure to regulatory risk?
Limited partnerships
The largest component of the money supply (m1) is:
Currency
What would not be suitable to recommend for investors primarily seeking income?
Sector fund
The investment company act of 1940 specifies that no more than 49% of the directors of an investment company can be
Interested persons
If a person who is a lawyer for a bank write to daily investment column for the local newspaper, what would be true about their status?
The person is not considered an investment advisor because the writers for the newspaper, magazines and business journals who do not give specific investment situations to individuals are exempt
As the CPI rises, what happens to bond prices, interest rates and consumer prices?
Bond prices are falling while interest rates and consumer prices are rising
What are deducted from the separate account for a variable life policy?
Expense risk fee, mortality risk fee, management fee
List the following order from least important to most important factors when considering an investing in a DPP
Liquidity, safety, tax considerations, profitability
An investor who is over 50 may contribute how much to their traditional IRA under the catch-up option?
7,000
Which act states that the trustee will diversify unless there is a good reason not to
Uniform prudent investor act
Which preferred stock is likely to have the lowest state of dividend rate?
Cumulative preferred