Series 66 Exam Quiz Mutual Funds 3
This is a Series 66 Exam Lesson 28 Unit Investment Trust Quiz: a free quiz for Series 66 Exam Lesson 28 Unit Investment Trust Quiz which is covering the Unit Investment Trust . Try it and see how you do if you need help listen to the lesson over.
Series 66 Exam Lesson 28 Unit Investment Trust Quiz
This is a Series 66 Exam Lesson 28 Unit Investment Trust Quiz. Try it and see how you do if you need help listen to the lesson over.
Questions covered include
1. It is a specific portfolio of bonds that is self-liquidating.
A. unit investment trust
B. open-end mutual fund
C. closed-end mutual fund
D. hedge fund
2. The unit investment trust is regulated by the Investment Company Act of 1940.
A. True
B. False
3. What is the implication of a unit investment trust being self-liquidating?
A. The investor will get back over time the principal plus interest.
B. The net asset value of the trust is independent from the market value.
C. The trust is free from ownership risk.
D. There is a constant interest rate until the trust’s maturity.
4. Which of the following is true about a unit investment trust which invests in fixed income investments?
(Select all that apply.)
A. Buying the trust is buying shares of beneficial interest.
B. Holding the unit investment trust to its maturity returns the investment (assuming no defaults).
C. If the trust is sold prior to maturity, it has more interest rate risk than other fixed income portfolio.
D. Unlike a bond, this trust is a fixed portfolio.
5. A fixed income unit investment trust differs from an open-end mutual fund in such a way that ___.
(Select all that apply.)
A. A fixed income unit investment trust is self-liquidating; an open-end mutual fund is not.
B. An open-end mutual fund has breakpoints; a fixed income unit investment trust has none.
C. An open-end mutual fund is perpetual; a fixed income unit investment trust is not.
D. An open-end mutual fund pays a little, if any, management fee; a fixed income unit investment trust pays very high management fees.
6. A unit investment trust does not expand nor contract in size once issued.
A. True
B. False
7. Unit investment trusts can invest in ___.
(Select all that apply.)
A. closed-end funds
B. corporate bonds
C. government securities
D. equities
8. The shares of beneficial interest in a unit investment trust can be redeemed prior to maturity.
A. True
B. False
9. A unit investment trust that invests in a master limited partnership will receive a ___ at the end of the year.
A. 1099-DIV
B. 1601F
C. CF-213
D. K-1
10. A trust invests in a closed-end fund. The fund’s net asset value is $28.74. It currently trades at $29.03. What is the percentage of the premium?
A. 0.01%
B. 0.09%
C. 0.99%
D. 1%
11. It is a unit investment trust used to fund variable annuities.
A. fixed income unit investment trust
B. municipal bond unit investment trust
C. participating unit investment trust
D. stock unit investment trust
12. In a fixed income unit investment trust, if any of the bonds in the fund default, the principal that the investor would be getting back would ___.
A. increase
B. decrease
C. remain the same
D. be equal to the market value
13. A unit investment trust that invests in US government bonds that is held in maturity is NOT subject to ___.
A. credit worthiness risk
B. currency risk
C. interest rate risk
D. principal risk
14. What is the advantage of buying a unit investment trust that strictly invests in a master limited partnership (compared with a unit investment trust that invests in closed-end funds that invest in the same master limited partnership)?
(Select all that apply.)
A. It avoids paying several management fees.
B. It can generate more income because the management fees are lower.
C. It has lower interest rate risk.
D. It receives the simpler 1099-DIV at the end of the year.
15. These are risk-free investments.
A. direct government securities
B. closed-end funds
C. unit investment trusts
D. treasury bonds
16. When a unit investment trust closes, the investor can ___.
(Select all that apply.)
A. get the proportion of the securities held in the trust
B. roll it over into the next unit investment trust
C. sell the shares
D. take a liquidation
17. Rolling over into the next unit investment trust is a non-taxable event.
A. True
B. False
18. It is taking the proportion of the securities held in the trust when the unit investment trust closes.
A. calling off
B. in-kind distribution
C. liquidation
D. rolling over
19. The intention to receive in-kind distribution when the unit investment trust closes must be made known to the trust at least ___ days before the termination of the trust.
A. 7
B. 15
C. 30
D. 60
20. A large enough position is required before an investor can opt to receive in-kind distribution when the unit investment trust closes.
A. True
B. False
We hope you did well on this Series 66 Exam Lesson 28 Unit Investment Trust Quiz
We hope you did well on this
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The Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The other possible exam would be the series 65 examination.
The Series 66 exam — the NASAA Uniform Combined State Law Examination — is a North American Securities Administrators Association (NASAA) exam administered by FINRA.
The exam consists of 100 scored questions. Candidates have 150 minutes to complete the exam. In order for a candidate to pass the Series 66 Exam, he/she must correctly answer at least 73 of the 100 scored questions.
There is no prerequisite for the Series 66 examination. However, the SIE and the Series 7 examination are co-requisites to the Series 66 Examination.
What is the Series 65 Exam?
The Series 65 is another path to becoming an Investment Advisor Representative (IAR)
Sometimes called the IAR in a box
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The NASAA, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
Again requisites for this exam are the SIE Exam and the Series 7 Exam Top Off
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 65.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 66 Exam Free Audio Lesson 13
Series 66 Exam Free Audio Lesson 13 is a lesson for the Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The Series 66 Exam consists of 100 questions. When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The Financial Industry Regulatory Authority, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 66.
The other possible exam path to become a IAR would be the series 65 examination.
What is the Series 65 Exam?
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 65 vs Series 66 Exam
The Series 65 exam is designed for those who do not have a Series 7 license. The content of both exams are similar though the Series 65 will be more heavily concentrated on Investment products and economics (like you would need to learn for the SIE and Series 7 Exam). … The Series 66 exam has a little more State law (such as what you will find in the Series 63 Exam) and some esoteric investment products.
Our audio lessons for both the Series 65 and Series 66 cover the material you would need to learn for the SIE and Series 7 exam so it may be a little more than you need for the Series 66 but we want you to be fully prepared!
The only difference between the two series of exam lessons (the 65 and 66) is that the Series 66 exam also covers the material needed for the Series 63 exam.
Our other website s for FINRA and other certification Exams include:
https://www.series7podcast.com
https://www.series7podcast.com
https://insuranceexampodcast.com
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https://www.reexampodcast.com/
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