Series 65 Practice Exam 6

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1. Which one of the following represents an example of fiscal policy?

2. A hypothecation agreement would be required for which one of the following types of accounts?

3. Melissa is an agent of a broker/dealer. Unbeknownst to the broker/dealer, she is selling interests in a hedge fund to existing clients of the broker/dealer. Melissa receives a commission on the sales of the hedge fund interests and on the sales of other securities in the clients’ accounts. She is violating the Uniform Securities Act because she is engaging in:

4. An agent of a broker-dealer has customers with several different types of investments within their portfolios. Which of the following investments would be considered securities?
  • I. Balanced mutual funds.
  • II. Bitcoin.
  • III. Variable annuities.
  • IV. Traditional IRAs.

5. Which one of the following items, if paid for with soft dollars, would likely fall within the safe harbor rules of Section 28(e) of the Securities Exchange Act of 1934?

6. Doris recently received an inheritance of $100,000. She would like to invest the inheritance in an investment that provides her both diversification and a large exposure to the technology industry. Which one of the following mutual funds would be the best investment for Doris based on her objectives?

7. A partner, officer, director, or other individual associated with an investment adviser who gives advice regarding securities is known as a(n):

8. A registered investment adviser may enter into an advisory contract that calculates compensation based on:

9. An investment adviser is generally not permitted to borrow money from or lend money to a client. However, an investment adviser would be permitted to borrow money if their client is:

10. What type of analysis uses ratio analysis to evaluate equities?