Series 63: Practice Exam #2

Practice Exam #2

1. 1. An investment adviser is someone who:
2. A. Provides trading services for a fee
3. B. Provides investment advice for a fee
4. C. Assists customers with transactions for a commission
5. D. Assists customers with transactions for a fee
6. 2. Which of the following would be considered providing investment advice?
7. A. Publishing a newsletter that discusses the gas and oil industries
8. B. Publishing a newsletter that gives money-saving tips for families
9. C. Publishing a newsletter that includes recommendations based on an individual’s investment situation
10. D. Publishing a newsletter where investments are mentioned on an incidental basis
11. 3. All of the following are exempt from state registration as an investment adviser except:
12. A. Federal covered advisers
13. B. Advisers working only with institutional investors
14. C. Out-of-state advisers with fewer than 25 clients in the state
15. D. Anyone exempted by amendments to the law
16. 4. An investment adviser representative:
17. A. Must meet net capital requirements
18. B. Should never receive a commission for their services
19. C. Is not subject to licensing examinations
20. D. Must be re-registered every year
21. 5. Which of the following are possible net capital requirements for different investment advisers, depending on the nature of their business?
22. I. $50,000
23. II. $35,000
24. III. $10,000
25. IV. A positive net worth
26. A. I and II
27. B. I and III
28. C. I, II, and III
29. D. II, III, and IV
30. 6. Employees of a federally registered investment adviser do not need to register in the state if:
31. A. They have fewer than 10 clients in the state.
32. B. They do not have an office in the state and do not provide investment advice for compensation.
33. C. They only publish investment-based newsletters.
34. D. They only advise investors on bonds securities.
35. 7