Contact for further consultation
Series 65 Dean Tinney
Kaplan Practice Test
Comprehensive
Questions (Frequently
Tested) with Verified
Answers Graded A+
1/
72
, Contact for further consultation
1. A registered broker-dealer would not be able to open an account for
A. A deceased individual
B. The American Cancer Society
C. The sovereign government of Poland
D. A convicted felon Answer: A deceased individual
2. Gaston is a police officer and wishes to contribute to a retirement
plan spon- sored by the city. Gaston wants the flexibility of being
able to have unfettered penalty-free access to his funds before
reaching age 59 1/2. This can only be accomplished if Gaston
contributes to
A. 401(k) plan
B. 403(b) plan
C. SEP IRA
D. 457 plan Answer: 457 plan
3. A married couple has lived in the same home for 40 years and
now, w/ the children all gone, they've decided to sell and move to a
retirement village. They purchased the home for $80k and have
accepted a contract for $800k. The tax consequences of this sale is
A. $0 capital gain
B. $720k capital gain
C. $470k capital gain
D. $220k capital gain Answer: $220k
4. A married couple has lived in the same home for 40 years and
now, w/ the children all gone, they've decided to sell and move to a
retirement village. They purchased the home for $80k and have
accepted a contract for $800k. The tax consequences of this sale is
$220k capital gain
How do you calculate this? Answer: First $250k is included - married couple = $500k
1/
72
, Contact for further consultation
excluded plus the $80k
2/
72
, Contact for further consultation
5. In order to compute the real rate of return for a security, it would be
necessary to know all of the following except
A. The annual dividend
B. The CPI
C. The beta of the security
D. The purchase price Answer: The beta of the security
6. Under the Uniform Securities Act, which of the following is an
agent?
A. An individual who is in the business of providing investment advice
on behalf of his employer
B. A clerical person who files trade confirmations for the firm
C. A broker-dealer that charges a commission as a regular part of its
business
D. An individual who effects securities transactions for commissions
Answer: An individual who ettects securities transactions for commissions
7. Which of the following statements about diversification through
asset class allocation are true?
1. Diversification involves investing a portfolio in at least 20 different
securities of the same asset class
2. Diversification is a way to reduce unsystematic risk in a portfolio
3. Diversification is a defensive investment strategy Answer: Diversification
is a way to reduce unsystematic risk in a portfolio and diversification is a defensive
investment strategy
8. The Administrator has just notified Rockland Securities that its
application to operate as a broker-dealer in this state is now effective.
Which of the following parties would be considered registered?
1. The firm
2. Its officers functioning as agents
3/
72
Series 65 Dean Tinney
Kaplan Practice Test
Comprehensive
Questions (Frequently
Tested) with Verified
Answers Graded A+
1/
72
, Contact for further consultation
1. A registered broker-dealer would not be able to open an account for
A. A deceased individual
B. The American Cancer Society
C. The sovereign government of Poland
D. A convicted felon Answer: A deceased individual
2. Gaston is a police officer and wishes to contribute to a retirement
plan spon- sored by the city. Gaston wants the flexibility of being
able to have unfettered penalty-free access to his funds before
reaching age 59 1/2. This can only be accomplished if Gaston
contributes to
A. 401(k) plan
B. 403(b) plan
C. SEP IRA
D. 457 plan Answer: 457 plan
3. A married couple has lived in the same home for 40 years and
now, w/ the children all gone, they've decided to sell and move to a
retirement village. They purchased the home for $80k and have
accepted a contract for $800k. The tax consequences of this sale is
A. $0 capital gain
B. $720k capital gain
C. $470k capital gain
D. $220k capital gain Answer: $220k
4. A married couple has lived in the same home for 40 years and
now, w/ the children all gone, they've decided to sell and move to a
retirement village. They purchased the home for $80k and have
accepted a contract for $800k. The tax consequences of this sale is
$220k capital gain
How do you calculate this? Answer: First $250k is included - married couple = $500k
1/
72
, Contact for further consultation
excluded plus the $80k
2/
72
, Contact for further consultation
5. In order to compute the real rate of return for a security, it would be
necessary to know all of the following except
A. The annual dividend
B. The CPI
C. The beta of the security
D. The purchase price Answer: The beta of the security
6. Under the Uniform Securities Act, which of the following is an
agent?
A. An individual who is in the business of providing investment advice
on behalf of his employer
B. A clerical person who files trade confirmations for the firm
C. A broker-dealer that charges a commission as a regular part of its
business
D. An individual who effects securities transactions for commissions
Answer: An individual who ettects securities transactions for commissions
7. Which of the following statements about diversification through
asset class allocation are true?
1. Diversification involves investing a portfolio in at least 20 different
securities of the same asset class
2. Diversification is a way to reduce unsystematic risk in a portfolio
3. Diversification is a defensive investment strategy Answer: Diversification
is a way to reduce unsystematic risk in a portfolio and diversification is a defensive
investment strategy
8. The Administrator has just notified Rockland Securities that its
application to operate as a broker-dealer in this state is now effective.
Which of the following parties would be considered registered?
1. The firm
2. Its officers functioning as agents
3/
72
