Contact for further consultation
Series 65
Comprehensive
Questions (Frequently
Tested) with Verified
Answers Graded A+
, Contact for further consultation
1. 1. Investment Advisory Representative (IAR) Answer: 1. Upon passing the
series 65 the agent may represent an registered investment adviser (RIA) and receive fee based
compensation. The fee based compensation may be based on a percentage of the assets under
management or as an hourly or flat fee for providing a personalized financial plan. There are no
prerequisites for taking the series 65 exam and the candidate does not need to be sponsored by a
FINRA member firm to take the test.
2. The series 66 is the uniform combined state law exam and qualifies a candidate to represent both
an investment adviser and a broker dealer. After passing the series 66 an agent may receive both fee
based compensation for representing an investment adviser and transition based compensation for
executing customer orders. The series 66 is a combination of the series 63 exam and the series 65
exam. Candidates do not have to be sponsored by a FINRA member firm to take the series 66 exam.
However, the series 7 exam is the co requisite for the series 66 exam and
a candidate who has passed the series 66 exam may not conduct any business until they have passed
the series 7 exam. All candidates must be sponsored to take the series 7 exam. If you have passed the
series 7 exam and have not taken the series 63 exam, the series 66 may be the right exam to take.
Keep in mind that while the series 66 has fewer questions than the series 65. If you have not passed the
series 7 or will not be taking the series 7 exam you must take the series 65 exam.
2. the financial effect of making student loan payments for 20 years
after grad- uating from college can be easily seen Answer: the financial ettect of
making student loan payments for 20 years after graduating from college can be easily seen.
For example, a college graduate who owes $60,000 in student loans at 3% interest will have to pay
$332.76 per month for 20 years to get that paid ott. If that amount was instead diverted into a Roth IRA
that grows at 6% for that same time period (with no further contributions after 20 years), then the
student would have almost $600,000 of tax-free money by age 65. No poll or study is necessary to see
the enormous impact that student loan debt can have on a borrower's retirement preparedness. (For
more, see Answer: Student Loans Answer: What to Do When You Can't Repay Them.)
3. Certificate of Deposit (CD) Answer: 1. a time deposit at a commercial bank and insured by
the FDIC that restricts holders from withdrawing funds on demand.
2. bears a maturity date ranging from one month to five years at a fixed interest rate and can be issued
in any denomination.
, Contact for further consultation
4. Negotiable Certificates of Deposit (NCD)
(Jumbo CD) Answer: 1. a large certificate of deposit that is typically purchased by
institutional/company investors.
, Contact for further consultation
2. Unlike a regular CD, NCDs pay periodic interest, usually twice a year and cannot be cashed in before
reaching maturity, but can be easily sold in the open market before that time.
3. minimum face value of $100,000, but typically are $1 million or more.
5. Treasury Bills (T-bills) Answer: 1. short-term securities that mature in 3-months, 6-months or
1-year.
2. exempt from state and local taxes.
3. purchased at less than par.
4. issued in denominations at $1,000, $5,000, $10,000, $25,000, $50,000, $100,000 and $1 million.
5. all Treasuries are considered to be risk-free (safest investments in the world).
6. Treasury Notes (T-notes) Answer: 1. a maturity between 1 and 10 years.
2. exempt from state and local taxes.
3. purchased at face value and pay out interest payments semi-annually.
4. bought through a bank or directly from US gov't.
5. can be sold in a large secondary market (liquidity).
7. Treasury Bond (T-Bond) Answer: 1. a maturity of more than 10 years.
2. exempt from state and local taxes.
3. purchased at face value and pay out interest payments semi-annually.
4. issued with a minimum denomination of $1,000 and maximum of $5 million.
5. After auction, bonds can be sold in the secondary market.
6. bonds can be bought directly from the government through TreasuryDirect at http
Answer://www.treasurydirect.gov, thereby bypassing a broker.
8. U.S. Savings Bonds Answer: 1. otter a fixed rate of interest over a fixed period of time.
2. not subject to state or local income taxes.
3. cannot be cashed until at least six months after purchase but maturity varies somewhere between 15 to
30 years.
4. come in 8 values Answer: $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000.
5. purchased directly from the Dept of the Treasury but can be cashed out at most banks.
6. must be an American citizen.
9. Municipal Bonds Answer: 1. are exempt from federal taxes and from most state and local
taxes.
2. issued by a state, municipality or county to finance its capital expenditures (such as the construction
Series 65
Comprehensive
Questions (Frequently
Tested) with Verified
Answers Graded A+
, Contact for further consultation
1. 1. Investment Advisory Representative (IAR) Answer: 1. Upon passing the
series 65 the agent may represent an registered investment adviser (RIA) and receive fee based
compensation. The fee based compensation may be based on a percentage of the assets under
management or as an hourly or flat fee for providing a personalized financial plan. There are no
prerequisites for taking the series 65 exam and the candidate does not need to be sponsored by a
FINRA member firm to take the test.
2. The series 66 is the uniform combined state law exam and qualifies a candidate to represent both
an investment adviser and a broker dealer. After passing the series 66 an agent may receive both fee
based compensation for representing an investment adviser and transition based compensation for
executing customer orders. The series 66 is a combination of the series 63 exam and the series 65
exam. Candidates do not have to be sponsored by a FINRA member firm to take the series 66 exam.
However, the series 7 exam is the co requisite for the series 66 exam and
a candidate who has passed the series 66 exam may not conduct any business until they have passed
the series 7 exam. All candidates must be sponsored to take the series 7 exam. If you have passed the
series 7 exam and have not taken the series 63 exam, the series 66 may be the right exam to take.
Keep in mind that while the series 66 has fewer questions than the series 65. If you have not passed the
series 7 or will not be taking the series 7 exam you must take the series 65 exam.
2. the financial effect of making student loan payments for 20 years
after grad- uating from college can be easily seen Answer: the financial ettect of
making student loan payments for 20 years after graduating from college can be easily seen.
For example, a college graduate who owes $60,000 in student loans at 3% interest will have to pay
$332.76 per month for 20 years to get that paid ott. If that amount was instead diverted into a Roth IRA
that grows at 6% for that same time period (with no further contributions after 20 years), then the
student would have almost $600,000 of tax-free money by age 65. No poll or study is necessary to see
the enormous impact that student loan debt can have on a borrower's retirement preparedness. (For
more, see Answer: Student Loans Answer: What to Do When You Can't Repay Them.)
3. Certificate of Deposit (CD) Answer: 1. a time deposit at a commercial bank and insured by
the FDIC that restricts holders from withdrawing funds on demand.
2. bears a maturity date ranging from one month to five years at a fixed interest rate and can be issued
in any denomination.
, Contact for further consultation
4. Negotiable Certificates of Deposit (NCD)
(Jumbo CD) Answer: 1. a large certificate of deposit that is typically purchased by
institutional/company investors.
, Contact for further consultation
2. Unlike a regular CD, NCDs pay periodic interest, usually twice a year and cannot be cashed in before
reaching maturity, but can be easily sold in the open market before that time.
3. minimum face value of $100,000, but typically are $1 million or more.
5. Treasury Bills (T-bills) Answer: 1. short-term securities that mature in 3-months, 6-months or
1-year.
2. exempt from state and local taxes.
3. purchased at less than par.
4. issued in denominations at $1,000, $5,000, $10,000, $25,000, $50,000, $100,000 and $1 million.
5. all Treasuries are considered to be risk-free (safest investments in the world).
6. Treasury Notes (T-notes) Answer: 1. a maturity between 1 and 10 years.
2. exempt from state and local taxes.
3. purchased at face value and pay out interest payments semi-annually.
4. bought through a bank or directly from US gov't.
5. can be sold in a large secondary market (liquidity).
7. Treasury Bond (T-Bond) Answer: 1. a maturity of more than 10 years.
2. exempt from state and local taxes.
3. purchased at face value and pay out interest payments semi-annually.
4. issued with a minimum denomination of $1,000 and maximum of $5 million.
5. After auction, bonds can be sold in the secondary market.
6. bonds can be bought directly from the government through TreasuryDirect at http
Answer://www.treasurydirect.gov, thereby bypassing a broker.
8. U.S. Savings Bonds Answer: 1. otter a fixed rate of interest over a fixed period of time.
2. not subject to state or local income taxes.
3. cannot be cashed until at least six months after purchase but maturity varies somewhere between 15 to
30 years.
4. come in 8 values Answer: $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000.
5. purchased directly from the Dept of the Treasury but can be cashed out at most banks.
6. must be an American citizen.
9. Municipal Bonds Answer: 1. are exempt from federal taxes and from most state and local
taxes.
2. issued by a state, municipality or county to finance its capital expenditures (such as the construction
