Series 65 – Uniform Investment Adviser Law Exam
Questions with Answers
1. In State licensing requirements for financial planners may include
A) incorporation
B) passing the Series 65 or Series 66 exam
C) surrendering any licenses to sell life insurance products
D) surrendering any licenses to sell securities products
Answer: B
2. Which of the following statements regarding a $1,000 corporate 8.50% bond
offered at 110 is true?
a. The bond is a discount bond.
b. The bond’s current yield is lower than its yield to maturity.
c. The bond’s current yield is calculated by dividing its annual interest by its market
price.
d. To determine the bond’s current yield, its stated rate must be compared against
other fixed-rate investments in the client’s portfolio.
Answer: B
3. A customer has contributed $1,000 a year for 10 years to his tax-deferred
nonqualified variable annuity. The value of the separate account is now $30,000.
If the customer takes a withdrawal of $10,000, what are the tax consequences?
a. The entire $10,000 is taxable as ordinary income.
b. There is no tax as the withdrawal is considered return of capital.
c. Two-thirds of the withdrawal is taxable as ordinary income.
d. Any tax due is deferred.
Answer: A
4. If a group of money managers were having a discussion and the term LIBOR
was mentioned, the topic would most likely be:
a. Contract negotiations with the employee’s union.
b. Current economic conditions in Liberia.
Questions with Answers
1. In State licensing requirements for financial planners may include
A) incorporation
B) passing the Series 65 or Series 66 exam
C) surrendering any licenses to sell life insurance products
D) surrendering any licenses to sell securities products
Answer: B
2. Which of the following statements regarding a $1,000 corporate 8.50% bond
offered at 110 is true?
a. The bond is a discount bond.
b. The bond’s current yield is lower than its yield to maturity.
c. The bond’s current yield is calculated by dividing its annual interest by its market
price.
d. To determine the bond’s current yield, its stated rate must be compared against
other fixed-rate investments in the client’s portfolio.
Answer: B
3. A customer has contributed $1,000 a year for 10 years to his tax-deferred
nonqualified variable annuity. The value of the separate account is now $30,000.
If the customer takes a withdrawal of $10,000, what are the tax consequences?
a. The entire $10,000 is taxable as ordinary income.
b. There is no tax as the withdrawal is considered return of capital.
c. Two-thirds of the withdrawal is taxable as ordinary income.
d. Any tax due is deferred.
Answer: A
4. If a group of money managers were having a discussion and the term LIBOR
was mentioned, the topic would most likely be:
a. Contract negotiations with the employee’s union.
b. Current economic conditions in Liberia.
