QUESTION 1

Which of the following life insurance products has a fixed premium?

variable life

variable universal life

both (A) and (B)

neither (A) nor (B)

QUESTION 2

Which of the following is TRUE of mutual funds? I. They are a one-time offering of new securities; II. The issuer continuously offers new shares; Ill. Shares must be sold in the market; IV. Shares are redeemed with the issuer.

I and III

I and IV

II and III

II and IV

QUESTION 3

A fixed annuity guarantees all of the following except:

Income for life.

Protection from inflation.

Rate of return.

Protection from investment risk.

QUESTION 4

When a customer chooses to annuitize a variable annuity, all of the following are factors the insurance company will use in calculating the initial payout amount except:

age of the annuitant.

gender of the annuitant.

balance of the separate account.

historic inflation rate.

QUESTION 5

In order to clear up confusing language and highlight a fund's features, a registered representative may:

highlight the financial results in the statutory prospectus.

highlight the breakpoint chart in the summary prospectus.

not change a prospectus in any way.

provide a magazine article that explains the fund prior to talking an order to purchase.

QUESTION 6

A mutual fund has been seeking to attract new customers to invest in its growth fund. They have been running an advertising campaign that markets them as a diversified mutual fund. How much of any one company may they own?

15%.

5%.

10%.

9%.

QUESTION 7

Which of the following is NOT TRUE of real-estate investment trusts (REITs)?

They may trade at a discount to the NAV.

They may invest in construction loans.

They are redeemable securities.

None of the above

QUESTION 8

Under the Investment Company Act of 1940 all of the following are examples of management companies except:

S&P 500 Index Trust ETF.

growth fund option for a VA.

Windmill Income UIT.

Windmill Income Fund, an exchange-listed closed-end fund.

QUESTION 9

What is the maximum sales charge for a mutual fund?

8%, which is built into the public offering price

8%, which is added to the public offering price

8 1/2%, which is built into the public offering price

8 1/2%, which is added to the public offering price

QUESTION 10

The ex-dividend date on a closed-end mutual fund is set by the:

Board of directors of the fund.

SEC.

Board of governors.

FINRA/NYSE.

QUESTION 11

Which two of the following corporate characteristics are the easiest for a limited partnership to avoid? I. Having perpetual life; II. Providing limited liability; Ill. Having centralized management; IV. Having free transferability

I and III

I and IV

II and III

II and IV

QUESTION 12

Which of the following partnership documents includes the rights and responsibilities of the general and limited partners?

Certificate of limited partnership

Subscription agreement

Partnership agreement

Both (A) and (C)

QUESTION 13

An investor is purchasing $48,000 of the Windmill Alternative Energy Fund. The fund has a breakpoint at $50,000. The least appropriate action would be to

place the order.

explain breakpoints.

explain letters of intent.

discuss combination privilege.

QUESTION 14

Before an order to purchase a mutual fund can be taken, an investor must be provided with: I. a full prospectus; II. a statement of additional information; III. a Rule 482 prospectus; IV. a summary prospectus.

I and IV

II or III

I or IV

III and IV

QUESTION 15

Which of the following documents must be signed by a general partner to accept a new limited partner?

Partnership welcome form

Certificate of limited partnership

Agreement of limited partnership

Subscription agreement

QUESTION 16

Which of the following are TRUE about variable annuities? I. Investors purchase accumulation units during the pay-in phase; II. Investors purchase annuity units during the pay-in phase; Ill. If the performance of the securities held in the separate account exceeds the assumed interest rate, payouts increase; IV. Payments to variable annuities are made from pretax dollars.

I and III

I, III, and IV

II and III

II, III, and IV

QUESTION 17

All of the following are ways a variable annuity can be purchased EXCEPT

immediate annuity

payment deferred immediate annuity

single payment deferred annuity

periodic payment deferred annuity

QUESTION 18

Depletion deductions may be claimed for

equipment leasing programs

raw land real-estate programs

exploratory oil and gas programs

income oil and gas programs

QUESTION 19

Which of the following is true of private-equity funds? I. They are exempt from SEC registration; II. They must be registered with the SEC; Ill. They may purchase private companies; IV. They may not purchase private companies.

I and III

I and IV

II and III

II and IV

QUESTION 20

FerdCo Communications Fund has a NAV of $14.20 and a POP of $15.02. FerdCo offers breakpoints for large dollar purchases. If FerdCo is only charging a 4 % sales charge for purchases between $20,000 and $30,000, how many shares would Mr. Smith receive if purchasing $25,000 worth?

1,597.225 shares

1,662.882 shares

1,664.447 shares

1,690.331 shares