1|Page
Lactation Counselor (CLC) Complete Exam Bundle
2026–2027 | 4 Exam Versions with Verified Questions
& Answers PD
The difference between a bond's price and the conversion parity
price is referred to as - ..ANSWER...✓✓ conversion premium
An individual who meets what criteria must register as an
investment adviser? - ..ANSWER...✓✓ The individual provides
advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to
receive dividends equal to the normally specified rate, as well as
an additional dividend based on a specific predetermined
condition is called a - ..ANSWER...✓✓ participating preferred
stock
Profit sharing plans have what characteristic? - ..ANSWER...✓✓
they can be invested entirely in company stock
What is true regarding the Central Registration Depository
(CRD)? - ..ANSWER...✓✓ It was developed by NASAA and the
NASD
,2|Page
It consolidated a multiple paper-based state licensing and
regulatory process into a single, nationwide computer system
Its computerized database contains the licensing and disciplinary
histories on more than 650,000 securities professionals and
5,200 securities firms
Who is responsible for maintaining fair and orderly markets for
an assigned set of listed firms? They operate both manually and
electronically to facilitate price discovery during market opens,
closes, and during periods of trading imbalances and instability.
- ..ANSWER...✓✓ Designated Market Makers
If real GDP declined the last 3 quarters, how many more
consecutive quarters of decline would be needed to be classified
as an economic depression? - ..ANSWER...✓✓ 3 quarters
What is a correct reason to purchase a particular investment for
a client's portfolio? - ..ANSWER...✓✓ Blue chip common stocks
because they provide a hedge against inflation
An unconditional promise to pay a sum of money to a payee,
either at a fixed or determinable future time, under specific
terms is called a - ..ANSWER...✓✓ Promissory note
,3|Page
A trade surplus results from - ..ANSWER...✓✓ a country
exporting more than it imports
William, age 56, recently retired from Epsilon Inc., and would
like to take a distribution from a retirement plan to pay for
medical expenses. What plan would allow William to take a
penalty free withdrawal? - ..ANSWER...✓✓ 401(k) from Epsilon
Inc
Match the state of the business cycle with the description that
follows for questions 19-22
A. Trough
B. Expansion
C. Contraction
D. Peak
_______ Recession - ..ANSWER...✓✓ contraction
_________ Utilization at its lowest level - ..ANSWER...✓✓
Trough
_______ Recovery - ..ANSWER...✓✓ Expansion
, 4|Page
________ GDP at its highest point - ..ANSWER...✓✓ Peak
All are characteristics of a REIT EXCEPT - ..ANSWER...✓✓ it is a
publicly traded open-end investment company
(it is closed-end)
What can an investor sign which allows him or her to receive
breakpoint discounts based upon a commitment to buy a
specified number of mutual fund shares over a period of time,
usually 13 months - ..ANSWER...✓✓ Letter of intent
What is a type of exchange rate system in which a country ties
its currency to a basket of other currencies or to another measure
of value, such as gold? - ..ANSWER...✓✓ Fixed exchange rate
system
What will result if money distributed from a 529 plan is not used
to pay for qualifying education expenses? - ..ANSWER...✓✓
The gain is taxed as ordinary income, and a 10% penalty is
applied
An investor who believes that an economic recession is imminent
should purchase which type of stock? - ..ANSWER...✓✓
Lactation Counselor (CLC) Complete Exam Bundle
2026–2027 | 4 Exam Versions with Verified Questions
& Answers PD
The difference between a bond's price and the conversion parity
price is referred to as - ..ANSWER...✓✓ conversion premium
An individual who meets what criteria must register as an
investment adviser? - ..ANSWER...✓✓ The individual provides
advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to
receive dividends equal to the normally specified rate, as well as
an additional dividend based on a specific predetermined
condition is called a - ..ANSWER...✓✓ participating preferred
stock
Profit sharing plans have what characteristic? - ..ANSWER...✓✓
they can be invested entirely in company stock
What is true regarding the Central Registration Depository
(CRD)? - ..ANSWER...✓✓ It was developed by NASAA and the
NASD
,2|Page
It consolidated a multiple paper-based state licensing and
regulatory process into a single, nationwide computer system
Its computerized database contains the licensing and disciplinary
histories on more than 650,000 securities professionals and
5,200 securities firms
Who is responsible for maintaining fair and orderly markets for
an assigned set of listed firms? They operate both manually and
electronically to facilitate price discovery during market opens,
closes, and during periods of trading imbalances and instability.
- ..ANSWER...✓✓ Designated Market Makers
If real GDP declined the last 3 quarters, how many more
consecutive quarters of decline would be needed to be classified
as an economic depression? - ..ANSWER...✓✓ 3 quarters
What is a correct reason to purchase a particular investment for
a client's portfolio? - ..ANSWER...✓✓ Blue chip common stocks
because they provide a hedge against inflation
An unconditional promise to pay a sum of money to a payee,
either at a fixed or determinable future time, under specific
terms is called a - ..ANSWER...✓✓ Promissory note
,3|Page
A trade surplus results from - ..ANSWER...✓✓ a country
exporting more than it imports
William, age 56, recently retired from Epsilon Inc., and would
like to take a distribution from a retirement plan to pay for
medical expenses. What plan would allow William to take a
penalty free withdrawal? - ..ANSWER...✓✓ 401(k) from Epsilon
Inc
Match the state of the business cycle with the description that
follows for questions 19-22
A. Trough
B. Expansion
C. Contraction
D. Peak
_______ Recession - ..ANSWER...✓✓ contraction
_________ Utilization at its lowest level - ..ANSWER...✓✓
Trough
_______ Recovery - ..ANSWER...✓✓ Expansion
, 4|Page
________ GDP at its highest point - ..ANSWER...✓✓ Peak
All are characteristics of a REIT EXCEPT - ..ANSWER...✓✓ it is a
publicly traded open-end investment company
(it is closed-end)
What can an investor sign which allows him or her to receive
breakpoint discounts based upon a commitment to buy a
specified number of mutual fund shares over a period of time,
usually 13 months - ..ANSWER...✓✓ Letter of intent
What is a type of exchange rate system in which a country ties
its currency to a basket of other currencies or to another measure
of value, such as gold? - ..ANSWER...✓✓ Fixed exchange rate
system
What will result if money distributed from a 529 plan is not used
to pay for qualifying education expenses? - ..ANSWER...✓✓
The gain is taxed as ordinary income, and a 10% penalty is
applied
An investor who believes that an economic recession is imminent
should purchase which type of stock? - ..ANSWER...✓✓
