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4th April 2016, 01:40 PM
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Join Date: May 2012
Re: Sample Series 6 Questions

The Series 6 license is a credential you can use to pursue such a profession. The Series 6 exam is called the Investment Company/Variable Contracts Products Limited Representative Qualification Examination and is used to qualify persons seeking to become registered representatives under the Investment Company Act of 1940.

Series 6 Exam is divided into six sections and heavily weighted on questions that pertain to interactions with customers.

There are approximately eight questions on securities markets, investment securities and economic factors.
Twenty-three questions on securities and tax regulations
Eighteen questions on marketing, prospecting, and sales presentations
Thirteen on evaluation of customers
Twenty-six on product information, including investment company securities and variable Contracts
Twelve on opening and servicing customer accounts

Series 6 Practice Questions:

1. Which type of insurance plan guarantees a minimum cash value and a certain growth rate?

a. Variable universal life insurance
b. Universal life insurance
c. Temporary insurance
d. Term life insurance

2. Which federal Act requires that variable life insurance policies and variable annuities must be registered with the SEC before being sold?

a. Investment Company Act of 1940
b. Investment Advisors Act of 1940
c. Securities Exchange Act of 1934
d. Securities Exchange Act of 1933

3. What type of fee does a mutual fund incur in conjunction with activities reflected in its portfolio turnover rate?

a. Front-end sales load fee
b. Commission fee on trading activity
c. Redemption fee
d. Deferred sales charge

4. Which is a feature of a UTMA account but not of a UGMA account?

a. Cannot be a margin account
b. Re-registration can be extended to age 25
c. Contributions to the account are irrevocable
d. Only one adult can manage the account

5. FINRA Rule 3370 allows a member firm and its registered persons to accept purchase orders from customers when...

a. the customer maintains a margin balance that is sufficient to cover the amount of the purchase order
b. the securities received against payment are valued at more than the amount of the execution
c. the customer has been a client of the member firm for more than two years
d. the securities received against payment are the same amount as the execution

Question 1: Under 2013, what is the maximum allowable contribution for an individual into an Individual Retirement Account (IRA) per year?

A. $5,500
B. $6,500
C. $11,000
D. 100% of earned income to a maximum of $5,500.
Answer: D.

Question 2: Under the Investment Company Act of 1940, which of the following are classifications of investment companies?

I. Face Amount Certificate Companies
II. Insurance Companies
III. Unit Investment Trusts
IV. Management Investment Companies

A. I, II, III and IV
B. II, III and IV
C. I, III and IV
D. III and IV

Answer: C.

Question 3: All of the following are classifications of investment companies under the Investment Company Act of 1940, except:

A. Face Amount Certificate Companies
B. Insurance Companies
C. Unit Investment Trusts
D. Management Investment Companies
Answer: B.

Question 4: A Registered Representative explains to a customer that the net asset value (NAV) of a mutual fund is $21.85/share and the ask price is $23./share, which means that the sales charge is 5%. The customer is confused and asks how this is computed. The RR should respond that:
A. The sales charge is calculated as a percentage of the NAV.
B. The sales charge is the reciprocal of the NAV.
C. The sales charge is calculated as a percentage of the ask.
D. The sales charge depends on the demand in the marketplace.
Answer: C

Question 5: Which of the following is included in computing the expense ratio for a mutual fund?
I. Advertising and Sales Literature Expenses
II. Investment Advisor\'s Fees
III. Custodian\'s Fees
IV. Transfer Agent Fees

A. I, II and III
B. II, III and IV
C. I, II and IV
D. II and IV
Answer: B.


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