Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy free practice questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Johan wants to invest in securities, but does not want to
lose his principal. He also wishes to receive returns in cash to supplement his retirement income. What are his investment objectives?Correct
•Liquidity: investing in securities that are easily converted tocash
•Preservation of capital: low-risk investments (like bonds) where capital is preservedIncorrect
•Liquidity: investing in securities that are easily converted tocash
•Preservation of capital: low-risk investments (like bonds) where capital is preserved -
Question 2 of 10
2. Question
Jessy is 40-years-old and you are making a strategic asset allocation. Without knowing anything else about her objectives, assets or personal situation, how would you allocate his portfolio?
Correct
A simple way to make up a strategic allocation is to subtract your customer’s age from 100. That number should be the percentage invested in stock; the rest should be invested in bonds and cash instruments.
Incorrect
A simple way to make up a strategic allocation is to subtract your customer’s age from 100. That number should be the percentage invested in stock; the rest should be invested in bonds and cash instruments.
-
Question 3 of 10
3. Question
William asks you to put together a portfolio for him. He wants
to base the allocation on market value of stocks and securities, not on any long-term goals. You would make a:Correct
Tactical Asset Allocation When making tactical asset allocations, you are adjusting a portfolio to market conditions. For instance, if you expect the stock market to fall, you would put more assets in bonds or cash. Tactical asset allocation anticipates market movement by studying the market, with hopes of benefiting from fluctuations.
Incorrect
Tactical Asset Allocation When making tactical asset allocations, you are adjusting a portfolio to market conditions. For instance, if you expect the stock market to fall, you would put more assets in bonds or cash. Tactical asset allocation anticipates market movement by studying the market, with hopes of benefiting from fluctuations.
-
Question 4 of 10
4. Question
Which of the following statement(s) is (are) true about a custodial account’s requirements?
I. A custodial account can only have one custodian and one minor.
II. The account is registered to the custodian, benefiting the minor.
III. The minor isn’t responsible for taxes.
IV. The account cannot trade on margin and cannot be held in a street name.Correct
To protect minors and avoid abuse of the rights that come with these accounts, custodial accounts have requirements you must know:
•A custodial account can only have one custodian and one minor.
•The account is registered to the custodian, benefiting theminor.
•The account cannot trade on margin and cannot be held in a street name.
•The minor is responsible for taxes.Incorrect
To protect minors and avoid abuse of the rights that come with these accounts, custodial accounts have requirements you must know:
•A custodial account can only have one custodian and one minor.
•The account is registered to the custodian, benefiting theminor.
•The account cannot trade on margin and cannot be held in a street name.
•The minor is responsible for taxes. -
Question 5 of 10
5. Question
Custodial accounts fall under the-
I. Patriot Act
II. Uniform Gifts to Minors Act
III. Uniform Transfer to Minors Act
IV. FINRA Mark- up PolicyCorrect
Custodial accounts fall under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA).
Incorrect
Custodial accounts fall under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA).
-
Question 6 of 10
6. Question
When an investor wants you, as their registered representative, to make investment decisions for them, you would open a –
Correct
When an investor wants you, as their registered representative, to make investment decisions for them, you would open a discretionary account.
Incorrect
When an investor wants you, as their registered representative, to make investment decisions for them, you would open a discretionary account.
-
Question 7 of 10
7. Question
When placing a discretionary order, as a registered representative which rules you should follow?
I. The investor must periodically review the account.
II. Orders must be signed by the investor and be marked as discretionary.
III. The account cannot trade on and cannot be held in a street name.
IV. Any rights associated with the account must be exercised or sold.Correct
To protect the investor, there are rules you must follow when placing a discretionary order:
•The investor must periodically review the account to ensure the
registered representative is not “churning” (trading heavily to generate commissions).
•Orders must be signed by the investor and be marked as discretionary.Incorrect
To protect the investor, there are rules you must follow when placing a discretionary order:
•The investor must periodically review the account to ensure the
registered representative is not “churning” (trading heavily to generate commissions).
•Orders must be signed by the investor and be marked as discretionary. -
Question 8 of 10
8. Question
Which of the basic information will you need before you open an account?
I. Account type (options, margin, etc.)
II. Net worth and annual income
III. Order time and execution price
IV. Customer account numberCorrect
Before you can open an account, you will need some basic information:
•Customer name and address
•Date of birth
•Account type (options, margin, etc.)
•Social Security number
•Occupation and employer
•Citizenship
•Net worth and annual income
•Investment objectives
•Registered representative’s and principal’s (such as your firm’s
manager) signatureIncorrect
Before you can open an account, you will need some basic information:
•Customer name and address
•Date of birth
•Account type (options, margin, etc.)
•Social Security number
•Occupation and employer
•Citizenship
•Net worth and annual income
•Investment objectives
•Registered representative’s and principal’s (such as your firm’s
manager) signature -
Question 9 of 10
9. Question
According to Fed-guided settlement dates which of the following is true?
Correct
U.S. government bonds settle and require payment on one business day after the trade date.
Incorrect
U.S. government bonds settle and require payment on one business day after the trade date.
-
Question 10 of 10
10. Question
Which of the following additional item(s) should be included in Trade confirmations?
I. Yield (for bonds), or price of the security, including total dollars paid
II. Committee on Uniform Security Identification Procedures (CUSIP) number
III. Commission amount
IV. Net amountCorrect
Trade confirmations include the same information as on the order ticket, as well as these additional items:
•Yield (for bonds), or price of the security, including total dollars paid.
•Committee on Uniform Security Identification Procedures (CUSIP) number (this is a security identification number).
•Commission amount.
•Net amount (amount paid, minus commission).Incorrect
Trade confirmations include the same information as on the order ticket, as well as these additional items:
•Yield (for bonds), or price of the security, including total dollars paid.
•Committee on Uniform Security Identification Procedures (CUSIP) number (this is a security identification number).
•Commission amount.
•Net amount (amount paid, minus commission).