FINRA Security Industry Essentials Practice Test 37

1. Which of the following is an unconditional promise to pay a sum of money to a payee, either at a fixed or determinable future time, under specific terms?

2. A trade surplus results from which of the following?

3. William, age 56, recently retired from Epsilon Inc., and would like to take a distribution from a retirement plan to pay for medical expenses. Which of the following plans would allow William to take a penalty free withdrawal?

4. ____ Recession

5. ____ Utilization at its lowest level

6. ____ Recovery

7. ____ GDP at its highest point

8. All but which of the following are characteristics of a REIT?

9. Which of the following can an investor sign which allows him or her to receive breakpoint discounts based upon a commitment to buy a specified number of mutual fund shares over a period of time, usually 13 months?

10. Which of the following is a type of exchange rate system in which a country ties its currency to a basket of other currencies or to another measure of value, such as gold?

11. Which of the following will result if money distributed from a 529 plan is not used to pay for qualifying education expenses?

12. An investor who believes that an economic recession is imminent should purchase which of the following type of stocks?

13. Which of the following is/are correct regarding dividends paid by growth stocks and value stocks?

(1) Because they are growing and expanding, growth stocks typically do not pay large dividends.

(2) Most of the earnings generated from value stocks are reinvested back into the company.

14. Which of the following is a type of broker that acts as a liaison between an investor and a clearing corporation by helping to ensure that trades are settled appropriately and transactions are successfully completed?

15. Which of the following forms must broker-dealers, investment advisers, or issuers of securities fill out in order to terminate the registration of an individual in the appropriate jurisdiction? It is also known as the Uniform Termination Notice for Securities Industry Registration.