FINRA Investment Company and Variable Contracts Products Representative Examination (IR) - Series6 Exam Practice Test
When the U.S. dollar appreciates relative to other world currencies,
I. the prices of all domestic stocks and bonds can be expected to increase.
II. the prices of securities offered by manufacturers that import a lot of their parts can be expected to
increase.
III. an increase in the purchase of U.S. securities by foreign investors can be expected.
I. the prices of all domestic stocks and bonds can be expected to increase.
II. the prices of securities offered by manufacturers that import a lot of their parts can be expected to
increase.
III. an increase in the purchase of U.S. securities by foreign investors can be expected.
Correct Answer: D
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Main Street Capital Corporation (MAIN) is registered as a non-diversified investment company under the
Investment Company Act of 1940.Based on this, which of the following statements regarding MAIN are
true?
I. MAIN may not invest more than 5% of its investment monies in any single issuer.
II. The net asset value of MAIN's shares is likely to fluctuate more than that of a diversified investment
company.
III. MAIN's returns are more likely to be affected by any single, specific economic occurrence or regulatory
change.
Investment Company Act of 1940.Based on this, which of the following statements regarding MAIN are
true?
I. MAIN may not invest more than 5% of its investment monies in any single issuer.
II. The net asset value of MAIN's shares is likely to fluctuate more than that of a diversified investment
company.
III. MAIN's returns are more likely to be affected by any single, specific economic occurrence or regulatory
change.
Correct Answer: B
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Your client bought a variable annuity contract that has a 5% contingent deferred sales charge with a
7 -year surrender period four years ago. He has been reading about bonus annuities and 1035 exchanges
and has asked for your advice. You can tell him:
7 -year surrender period four years ago. He has been reading about bonus annuities and 1035 exchanges
and has asked for your advice. You can tell him:
Correct Answer: A
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The investment banker bears the risk if the securities do not sell in a(n):
Correct Answer: B
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Which of the following describes a difference between a Roth IRA and a traditional IRA?
I. Anyone with earned income can contribute to a traditional IRA, but not everyone with earned income
can make contributions to a Roth IRA.
II. The contributions made to a traditional IRA may be tax deductible, but the contributions made to a Roth
IRA are never tax deductible.
III. Contributions made to a Roth IRA may be withdrawn without penalty at any time whereas contributions
to a traditional IRA may only be withdrawn without penalty when the contributor reaches 59 1/2 or if the
contributor meets some specific requirements (e.g., becomes disabled.)
IV. When a contributor to a traditional IRA turns 70 1/2 , he must begin making mandatory withdrawals, but
there are no mandatory withdrawals with a Roth IRA.
I. Anyone with earned income can contribute to a traditional IRA, but not everyone with earned income
can make contributions to a Roth IRA.
II. The contributions made to a traditional IRA may be tax deductible, but the contributions made to a Roth
IRA are never tax deductible.
III. Contributions made to a Roth IRA may be withdrawn without penalty at any time whereas contributions
to a traditional IRA may only be withdrawn without penalty when the contributor reaches 59 1/2 or if the
contributor meets some specific requirements (e.g., becomes disabled.)
IV. When a contributor to a traditional IRA turns 70 1/2 , he must begin making mandatory withdrawals, but
there are no mandatory withdrawals with a Roth IRA.
Correct Answer: B
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Which of the following are fiscal policy tools under the jurisdiction of the U.S. Congress?
Correct Answer: A
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Which of the following would not be defined as an "interested person," under the Investment Company Act
of 1940?
of 1940?
Correct Answer: B
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Which of the following statements about specialists is false?
Correct Answer: A
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One difference between a unit investment trust (UIT) and a closed-end fund is that
Correct Answer: B
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Which of the following would not constitute a "public appearance," as defined by FINRA?
Correct Answer: A
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Ms. Mix always assures her clients that she will be calling them with quarterly recommendations for
rebalancing their portfolios if there are any changes that she feels are appropriate. This has worked out
well for her pocketbook since she has always been able to tweak each of her clients' investment portfolios
a little each quarter by recommending that they redeem their shares in one fund that hasn't performed as
well in the last quarter and use the proceeds to invest in another that has. Her clients feel cared for since
she is in such regular contact with them. Is Ms. Mix violating any securities regulations with this policy of
hers?
rebalancing their portfolios if there are any changes that she feels are appropriate. This has worked out
well for her pocketbook since she has always been able to tweak each of her clients' investment portfolios
a little each quarter by recommending that they redeem their shares in one fund that hasn't performed as
well in the last quarter and use the proceeds to invest in another that has. Her clients feel cared for since
she is in such regular contact with them. Is Ms. Mix violating any securities regulations with this policy of
hers?
Correct Answer: B
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Which of the following statements regarding both a Uniform Gifts to Minors account (UGMA) and a
Uniform Transfers to Minors account (UTMA) is false?
Uniform Transfers to Minors account (UTMA) is false?
Correct Answer: A
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