Question 1

All government bonds and the majority of corporate bonds are traded:

Options :

A : on the floor of the NYSE.

B : via electronic communication networks (ECNs).

C : on regional exchanges.

D : in the over-the-counter market.

Answer: D

Question 2

Which of the following steps in the underwriting process will occur last?

Options :

A : The underwriting syndicate is formed.

B : The selling group is organized.

C : The public offering price is set.

D : A red herring prospectus is circulated to the public.

Answer: C

Question 3

A retirement plan under which the benefit to be paid upon retirement is specified when an employee is signed up for the plan is known as a:

Options :

A : 401(k) plan.

B : SIMPLE-IRA.

C : defined benefit plan.

D : defined contribution plan.

Answer: C

Question 4

Which of the following do not fall under the category of “advertisement,” as defined by FINRA? I. scripts used in telemarketing the products of the member firm II. a website maintained by the member firm III. research reports that the member firm distributes to both its existing clients and its prospective clients IV. sales material that a member firm distributes only to its institutional clients

Options :

A : I only

B : IV only

C : I, III, and IV only

D : III and IV only

Answer: C

Question 5

Rank the following funds in order of their relative risk, from highest to lowest: I. growth fund II. high-yield bond fund III. high-grade bond fund IV. international fund

Options :

A : IV, I, II, III

B : I, IV, III, II

C : II, IV, I, III

D : IV, II, I, III

Answer: A