UNIT 7
Systematic risk would include all of the following except
What is Business Risk?
Investment income is...
normally taxed as ordinary income
Currency held by the public, including checking accounts and time deposits less than $100,000, and money market mutual funds would best be described by economists as
M2
Which federal agency is tasked with enforcing tax law?
IRS
Joshua, a registered representative, calls a prospect at 7:00 pm only to be told that the prospect is in a different time zone, where it is 10:00 pm. Joshua has
Violated the TCPA because it is after 9:00 pm the prospect’s time
Which of the following investments would not require heightened suitability requirements before recommending them to your clients?
A utilities mutual fund
A customer sells short 100 shares of ABC common stock at $35 per share. ABC stock increases in value, and the customer covers the short for $45 per share. What is the result of this set of transactions?
$10 per share loss
To calculate earnings per share (EPS), you would divide
the earnings available to the common shareholder from the income statement by the number of outstanding shares found on the balance sheet.
U4 forms must be kept for
3 years after the associate leaves the firm
The TCPA only restricts solicitations that are delivered via
the telephone lines
Which type of securities are most susceptible to business risk?
Common stock
A customer purchased 100 shares of MNO common stock two years ago for $20 per share. They now sell the shares for $23 per share. Over the last two years MNO has paid a $0.25 quarterly dividend. What is the total return?
25%
If the U.S economy were to enter a deflationary period, which of the following would likely occur?
Fixed income payments would become more valuable
The federal agency that oversees the national banks and other financial institutions is
The office of the comptroller of currency
Under the USA PATRIOT Act, financial firms must create and maintain records of wire transfers only
of $3000 or more
Your client, Harry Swenson, is very frugal. He feels like mutual funds have too many expenses and he doesn't believe that over a long period the active management of investment advisors can outperform their respective benchmarks, but he likes the idea of a pooled investment in the stock market rather than picking individual stocks on his own. Which of the following types of investments should you recommend?
An exchange traded fund (ETF)
In the last year, a customer made the following four transactions:
Purchased 1,000 shares of ABC stock for $67 per share
Purchased 500 shares of DEF stock for $45 per share
Sold 1000 shares of ABC stock for $50 per share
Sold 500 shares of DEF stock for $55 per share
Which of these is the result of the year's transaction?
$3000 reduction in ordinary income and $9000 in carry-forward losses
It would be reasonable to expect an increase in exports from the united states if which of these occurred?
I:The dollar strengthened against the euro
II:The yen strengthened against the dollar
III: The Swiss franc weakened against the dollar
IV: The dollar weakened against the British pound
II and IV
Which of the following companies was created by an act of Congress and provides securities investors limited financial coverage in the event that the investor's servicing broker-dealer fails financially?
SIPC
The order of money laundering.
placement, layering, integration
Call risk is most closely associated with
Reinvestment risk
An investor has a long position in OMQ stock. After selling the stock at a loss, the investor could purchase which of the following and not violate the wash sale rule?
OMQ put options
When the Federal Open Market Committee (FOMC) directs that Treasury securities be purchased in the open market, this
Increases the money supply
Keegan and Drew, spouses, have a checking account at Gloria City National Bank. The balance is $450,000. What is their protection from SIPC if Gloria City fails?
0
the funds available in the Tiger Pension Fund and emails them to the fund manager so that the fund manager can prints copies of the flyers and make them available to the participants in the pension fund. FINRA would classify these flyers as
Retail communications