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Last Updated: Jun 11, 2026
No. of Questions: 325 Questions & Answers with Testing Engine
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1. Which of the following are duties of the specialist on an exchange floor?
I. executing limit orders if/when the limit price specified is reached
II. minimizing any imbalance in supply and demand for the stock(s) that the specialist is assigned
III. determining an opening price for each assigned stock every day
IV. serving as an auctioneer for the shares of the assigned stocks
A) I and II only
B) I, II, and IV only
C) I, II, III, and IV
D) I and IV only
2. Which of the following is not one of the rules stipulated by the Securities Exchange Act of 1934?
A) All securities' exchanges and SROs are required to register with the SEC.
B) All brokers and dealers are required to be members of a national securities association.
C) Firms are required to send copies of their annual reports to investors before an annual meeting at
which directors are to be elected.
D) Investment companies are prohibited from using any sales literature that contains an omission of a
material fact.
3. The Federal Reserve announces that it plans to buy $3.89 billion in Treasury securities on the open
market. All else equal, which of the following is a likely result of this Fed action?
A) Money supply will increase, causing interest rates to fall.
B) Both B and C are likely results of this Fed action.
C) Stock and bond prices should increase.
D) Interest rates will rise, causing security prices to fall.
4. Which of the following describes a difference between a unit investment trust (UIT) and a mutual fund?
A) All of the above describe differences between a UIT and a mutual fund.
B) UITs must hold non-diversified portfolios; mutual funds may be either non-diversified or diversified.
C) UITs have a fixed number of shares; mutual funds do not.
D) UITs are not required to distribute dividends and capital gains to their shareholders as mutual funds
must.
5. Yvette is a recently-widowed 63-year-old. The couple had no children, and when her husband died, she
was the beneficiary of his $45,000 life insurance policy. She also receives benefits from his retirement
plan and social security, but this income falls about $300 short of covering her regular monthly expenses,
which includes a sizeable amount for health insurance. In the months since her husband's death, she sold
their larger home and purchased a condominium, netting $80,000 from the combined transactions. Yvette
was a homemaker all her life, and her husband handled all their finances, so Yvette is just learning how to
balance her checkbook. One thing she does know is that she is going to have to purchase a new car
within the next few months. Yvette is in good health and expects to live at least another 25 years. Which
of the following types of investments should be included in recommending an asset allocation to Yvette?
A) money market fund
B) aggressive growth stock fund
C) municipal bond fund
D) life insurance policy
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |
Kennedy
Merle
Horace
Kyle
Montague
Quinn
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