FINRA Series-6 - Investment Company and Variable Contracts Products Representative Qualification Examination (IR) Exam

Question #1 (Topic: )

Which of the following investment companies will always be passively managed?

A. a face-amount certificate company B. a unit investment trust C. a mutual fund D. a closed-end investment company

Answer: B

Question #2 (Topic: )

Which of the following is exempt from registering as an investment company under the
Investment Company Act of 1940?

A. a unit investment trust B. a non-diversified mutual fund C. a company that sells its securities only to accredited investors D. a company that has no sales charges or management fees

Answer: C

Question #3 (Topic: )

Ms. Newbie is a registered representative with Savvy Investments and has recently gotten
married. (Her new name is Mrs. Newbie-Oldman.)Her husband has been a client of hers,
and the couple now wants to put her name on the account. In this case:

A. Mrs. Newbie-Oldman may only share in the account to the extent that she deposits funds in the account. B. Mrs. Newbie-Oldman must obtain written authorization from Savvy Investments to put her name on the account. C. Mrs. Newbie-Oldmans husband must provide written authorization to Savvy Investments for his new bride to be included on the account. D. Both B and C are true statements.

Answer: D

Question #4 (Topic: )

Any compensation earned by a broker-dealer and its registered representative on the sale
of mutual fund shares must be returned to the funds underwriter if the purchaser decides
to redeem his shares within:

A. 30 days. B. 1 week. C. 7 business days. D. 5 business days.

Answer: C

Question #5 (Topic: )

A general decrease in price levels in the economy is referred to as:

A. disinflation. B. stagflation. C. recession. D. deflation.

Answer: D

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