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Series 66 Exam Lesson 25 Quiz Mutual Funds pt. 2 2024
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Series 66 Exam Quiz Mutual Funds 2
This is a Series 66 Exam Quiz Mutual Funds 1: a free quiz for Series 66 Exam Quiz Mutual Funds 2 which is covering Mutual Funds part 2 . Try it and see how you do if you need help listen to the lesson over.
Series 66 Exam Lesson 25 Quiz Mutual Funds pt 2
This is a Series 66 Exam Quiz Mutual Funds 2. Try it and see how you do if you need help listen to the lesson over.
Questions covered include
1. Which of the following is true about closed-end funds?
(Select all that apply.)
A. It can trade at a premium or at discount to net asset value.
B. It is redeemed.
C. It has a fixed maturity and interest rate.
D. It trades as a common stock on the exchanges wherever it is listed.
2. Which of the following details can be found on the website of the company that sponsors a closed-end fund?
(Select all that apply.)
A. discount to net asset value
B. net asset value
C. premium
D. price of the stock
3. It is the amount annually collected from the shareholders, which include all the operating cost of the fund.
A. conversion ratio
B. expense ratio
C. liquidity ratio
D. Sharpe ratio
4. If a closed-end fund has a very high expense ratio, one reason you might wish to buy the fund is because ___.
A. it is sold at net asset value
B. it is sold at net asset value less than the expense ratio
C. it is sold at par value
D. it is sold at a big discount to net asset value
5. In financial industry, “Red Herring” refers to ___.
A. expense ratio
B. hedge funds
C. master limited partnerships
D. preliminary prospectus
6. Which of the following is true about a preliminary prospectus?
(Select all that apply.)
A. It contains the price of shares agreed upon.
B. It contains the total number of shares issued.
C. It does not contain the price of shares agreed upon.
D. It does not contain the total number of shares issued.
7. One way that funds will get a higher return than the market average or a bigger loss than the market average is by leveraging their assets.
A. True
B. False
8. A fund is leveraged at 9.2%. If it has $80,000,000 in its assets, the portfolio would reflect a value of ___.
A. $7,360,000
B. $72,640,000
C. $73,600,000
D. $87,360,000
9. Leveraged funds enhance returns and outperform the market when stocks are going down.
A. True
B. False
10. A mutual fund or a management company must distribute their income ___.
A. annually
B. monthly
C. quarterly
D. weekly
11. A management company distributes its income in a form of ___.
(Select all that apply.)
A. capital gains
B. commissions
C. dividends
D. interest
12. These are capital gains that the management company must distribute at least on an annual basis.
A. capital yield
B. distribution yield
C. dividend yield
D. income yield
13. Dividend yield is the dividend that is paid out from the stocks that the management company owns and then passed through to the investors.
A. True
B. False
14. If you buy a closed-end fund before or close to the record date, your net asset value would decline by the amount of the distribution.
A. True
B. False
15. What would be a good reason for management companies to organize as master limited partnerships?
A. They want to acquire big positions in closed-end funds.
B. They want to avoid the double taxation.
C. They want to decrease their management expenses.
D. They want to increase their management fees.
16. It is a tax document of a master limited partnership.
A. 1099-DIV
B. 1601F
C. CF-213
D. K-1
17. Why would a management company organize as a closed-end fund instead of an open-end fund?
A. Closed-end funds generally have higher sales commission than open-end funds.
B. In closed-end funds, managers may have to sell into a down market to raise money to pay for redemption.
C. In closed-end funds, managers will not be forced to redeem shares when the market is weak.
D. Unlike open-end funds, closed-end funds are more secure with specific maturity and interest rate.
18. A mutual fund held in another mutual fund would have double management fees.
A. True
B. False
19. The management fees of closed end funds ___.
(Select all that apply.)
A. are a way in which closed-end funds make money
B. are much more variable than the management fees of open-end funds
C. decline over time as assets decline
D. grow over time as assets grow
20. Why would hedge funds acquire a big position in closed-end funds?
(Select all that apply.)
A. so that they can avoid the double taxation
B. so that they can move and change the closed-end fund into an open-end fund
C. so that they can capture the discount of the fund
D. so that they can prevent the market movement
We hope you did well on this
———————————
The Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The other possible exam would be the series 65 examination.
The Series 66 exam — the NASAA Uniform Combined State Law Examination — is a North American Securities Administrators Association (NASAA) exam administered by FINRA.
The exam consists of 100 scored questions. Candidates have 150 minutes to complete the exam. In order for a candidate to pass the Series 66 Exam, he/she must correctly answer at least 73 of the 100 scored questions.
There is no prerequisite for the Series 66 examination. However, the SIE and the Series 7 examination are co-requisites to the Series 66 Examination.
What is the Series 65 Exam?
The Series 65 is another path to becoming an Investment Advisor Representative (IAR)
Sometimes called the IAR in a box
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The NASAA, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
Again requisites for this exam are the SIE Exam and the Series 7 Exam Top Off
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 65.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 66 Exam Free Audio Lesson 13
Series 66 Exam Free Audio Lesson 13 is a lesson for the Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The Series 66 Exam consists of 100 questions. When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The Financial Industry Regulatory Authority, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 66.
The other possible exam path to become a IAR would be the series 65 examination.
What is the Series 65 Exam?
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 65 vs Series 66 Exam
The Series 65 exam is designed for those who do not have a Series 7 license. The content of both exams are similar though the Series 65 will be more heavily concentrated on Investment products and economics (like you would need to learn for the SIE and Series 7 Exam). … The Series 66 exam has a little more State law (such as what you will find in the Series 63 Exam) and some esoteric investment products.
Our audio lessons for both the Series 65 and Series 66 cover the material you would need to learn for the SIE and Series 7 exam so it may be a little more than you need for the Series 66 but we want you to be fully prepared!
The only difference between the two series of exam lessons (the 65 and 66) is that the Series 66 exam also covers the material needed for the Series 63 exam.
Our other website s for FINRA and other certification Exams include:
https://www.series7podcast.com
https://www.series7podcast.com
https://insuranceexampodcast.com
https://insuranceexampodcast.com
https://www.reexampodcast.com/
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