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FINRA Series6 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Prospecting and communication with clients
|
| Obtains and Verifies Customers' Purchase and Sales Instructions | 10% | - Order processing and transaction procedures
|
| Provides Customers with Information About Investments | 50% | - Investment company securities and variable contracts
|
| Opens Accounts After Obtaining and Evaluating Customer Financial Profile | 16% | - Customer account types and documentation
|
FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
You have a client, Richie Rich, who is in the 39.6% marginal tax bracket, and one of his investment goals
is to minimize his payments to the IRS. Which of the following instruments would serve this purpose?
- A. an investment-grade corporate bond
- B. U.S. Treasury bills
- C. Both Selections A and B would serve to minimize his payments to the IRS.
- D. general obligation bonds
Correct Answer: D 🗳️
Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).
Under current tax laws, which of the following distributions received from a mutual fund qualify for
preferential tax treatment?
I. short-term capital gains
II. long-term capital gains
III. qualifying dividends
IV. non-qualifying dividends
- A. II and III only
- B. I, II, III, and IV
- C. III only
- D. I, II, and III only
Correct Answer: A 🗳️
Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).
Your nephew has asked you to help him formulate a financial plan for his family. Scott is 27 years old and
has been employed as an associate with a law firm for two years. Sarah, his wife, is 26 years old and
works in the human resources department of a large corporation. The couple is childless now, but they
plan to begin a family in a few years. Together, they have accumulated $10,000 in a savings account and
recently inherited $40,000 cash. They expect to be able to start saving at least $5,000 annually since their
incomes more than meet their current needs. They each have employer-provided health insurance and
retirement plans. Both have excellent upward mobility potential in their careers. They currently pay taxes
at the marginal rate of 15%. Scott tells you that although they regularly read some of the more popular
financial investment magazines, neither feels particularly knowledgeable about the world of investments.
Based on this information, which of the following statements is true?
- A. Purchasing power risk is not an issue in their situation.
- B. A greater than average percentage of their money should be invested in municipal bonds to minimize
their currently high tax bill. - C. A greater than average percentage of their money should be invested in money market mutual funds to
meet their needs for liquidity. - D. Although some money should be allocated to bond funds for diversification purposes, bond funds
should be underweighted in favor of stock funds.
Correct Answer: D 🗳️
Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).
Mr. Walt Street has observed that a Treasury note maturing in November of 2019 and paying a 3.375%
coupon has a bid price of 105:25 and an ask price of 105:26.In this instance, what is the dealers' spread
for every $1,000 of par value?
- A. $0.03375
- B. $0.10000
- C. $0.03125
- D. $0.31250
Correct Answer: D 🗳️
Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).
The URMoney Mutual fund, a no load fund, has 10 million shares outstanding. The market value of its
assets is $620 million and its liabilities are $150. Based on this information, an investor who wants to buy
shares of the fund will pay:
- A. This cannot be answered without knowing what, if any, the front-end load is.
- B. $47 a share.
- C. $62 a share.
- D. $15 a share.
Correct Answer: B 🗳️
Explanation: Only visible for PassLeaderVCE members. You can sign-up / login (it's free).
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