Series 65: Chapter Five Practice Questions

Taken from our Series 65 Online Guide

Chapter Five Practice Questions

  1. 1. All of the following are pass-through tax entities except:
  2. A. S-corp
  3. B. C-corp
  4. C. LLC
  5. D. General Partnership
  6. 2. Which of the following would result in a joint owner automatically receiving all ownership in the event of another person’s death?
  7. A. Joint tenancy with rights of survivorship
  8. B. Joint tenancy in common
  9. C. General partnership
  10. D. LLC
  11. 3. A client who wishes to retire in 40 years, but does not have any desire to experience negative changes in his portfolio between now and then, could best be described as having:
  12. A. A conservative risk tolerance
  13. B. A moderate risk tolerance
  14. C. Current income as their primary goal
  15. D. Very little investment experience
  16. 4. John is 25 years old and earns $45,000 as an Emergency Medical Technician. He has saved $15,000 to invest and would like to purchase a house in five to seven years. Which of the following would be the least suitable recommendation?
  17. A. Tax-free municipal bonds
  18. B. Large-cap equity fund
  19. C. Preferred stocks of an NYSE-listed company
  20. D. A balanced fund
  21. 5. Alex is a 55-year-old executive for a Fortune 500 company. His wife, who does not work, likes to live beyond their means. He has just inherited $500,000 and would like to invest it so that he can supplement his income when needed. What would be the most suitable investment for him?
  22. A. Blue chip stocks
  23. B. Tax-free municipal bonds
  24. C. REITs
  25. D. High-yield corporate bonds
  26. 6. Sarah is a 34-year-old dental hygienist and makes $40,000 per year. She is a single mother and has a chronically sick child. She sometimes has trouble paying her son’s medical bills. She has just inherited $400,000 and would like to invest it. She would like an investment that is relatively safe and liquid in case she needs to cash out of the investment. Of the following recommendation, what would be the m

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