Last Updated: Aug 04, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Obtains and Verifies Customers' Purchase and Sales Instructions | 10% | - Order processing and transaction procedures
|
| Provides Customers with Information About Investments | 50% | - Investment company securities and variable contracts
|
| Opens Accounts After Obtaining and Evaluating Customer Financial Profile | 16% | - Customer account types and documentation
|
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Prospecting and communication with clients
|
1. 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:
A) defined contribution plan.
B) defined benefit plan.
C) SIMPLE-IRA.
D) 401(k) plan.
2. Ralph has a traditional IRA from which he has yet to make any withdrawals. Ralph will be turning 70 1/2 in
June, 2011.According to the required minimum distribution rule associated with traditional IRAs, Ralph is
required to start withdrawing funds from this account:
A) on April 1, 2012.
B) no later than the day after he turns 70 1/2 .
C) on April 15, 2012.
D) on April 15, 2011.
3. Which of the following plans does not have the requirement that its participants must begin withdrawing
funds from the plan by April 1st of the year after they turn 70 1/2 ?
I. SIMPLE IRA
II. 401(k)
III. Roth IRA
IV. profit-sharing plan
A) All of the above have a mandatory distribution requirement.
B) I, III and IV only
C) III only
D) I and III only
4. Which of the following statements regarding a letter of intent is true?
A) An investor has 12 months in which to invest the amount stipulated in the letter.
B) Reinvested dividends and capital gain distributions count toward the amount stipulated in the letter of
intent.
C) A letter of intent may be backdated up to 90 days so that any purchases made during that prior time
period will count toward making a breakpoint.
D) An investor who signs a letter of intent and does not invest the amount stipulated must make up the
difference between the sales charge he paid and what he should have paid, plus interest.
5. Which of the following statements about non-qualified employer-sponsored retirement plans is false?
A) The earnings on the plan's contributions remain untaxed until they are withdrawn.
B) The plan may be either funded or unfunded.
C) The plan does not have to abide by ERISA's vesting requirements.
D) An employer does not have to offer the plan to all employees over 21 years old.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: A |
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