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Last Updated: Jul 29, 2026
No. of Questions: 325 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers' Purchase and Sales Instructions | 10% | - Order processing and transaction procedures
|
| Topic 2: Provides Customers with Information About Investments | 50% | - Investment company securities and variable contracts
|
| Topic 3: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Prospecting and communication with clients
|
| Topic 4: Opens Accounts After Obtaining and Evaluating Customer Financial Profile | 16% | - Customer account types and documentation
|
1. Doc purchased shares of the MedTech Fund at its net asset value of $9.66 a share at the beginning of the
year. The fund distributed dividends of $0.12 a share and capital gains of $0.10 a share during the year.
The net asset value at the end of the year was $12.00. The fund's total return was:
A) 25.5%.
B) 10.1%.
C) 21.3%.
D) 26.5%.
2. Andy and Annie Raggedy own their own graphics art business that they operate out of their home and,
happily, generate enough income to meet their current needs. The couple is planning on having children
in the not too distant future, however, and they want to start putting money aside for their children's
college education and also want to start saving for retirement more aggressively. Which of the following
describes one of their primary investment objectives?
A) current income
B) tax-exempt income
C) capital appreciation
D) preservation of capital
3. After three warnings, Honest Broker-Dealer was forced to terminate Sly Conman, one of its
representatives, for making inaccurate statements when offering its mutual fund products to customers.
After his registration is terminated:
A) Mr. Conman remains under the jurisdiction of FINRA for a period of 1 year.
B) Mr. Conman remains under the jurisdiction of FINRA for a period of 2 years.
C) Mr. Conman can apply for reinstatement of his license after 12 months.
D) Mr. Conman can apply for reinstatement of his license after 6 months, but will have to pay any
applicable fees and retake a test.
4. Paul is 36 years old and is married with two children, ages eight and ten. Paul lays carpet for a living,
working as an independent contractor, and earns about $35,000 a year. His wife, Paula, is 33 years old,
drives a school bus and earns only $18,000 a year, but her job provides the family with low-cost health
insurance. They live conservatively and barely make ends meet. Paula recently inherited $180,000,
however, and the couple would like to invest it, with the goal that they can both retire when Paul turns
6 2.The inheritance also included an educational endowment for their children, so they will not have to
worry about saving for their children's college educations. Which of the following would not be a suitable
recommendation for the allocation of their investment monies?
A) aggressive growth stock fund
B) life insurance
C) municipal bond fund
D) Roth IRA
5. Which of the following statements about non-qualified employer-sponsored retirement plans is false?
A) An employer does not have to offer the plan to all employees over 21 years old.
B) The plan does not have to abide by ERISA's vesting requirements.
C) The plan may be either funded or unfunded.
D) The earnings on the plan's contributions remain untaxed until they are withdrawn.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: D |
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