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Series-6 – Investment Company and Variable Contracts Products Representative Qualification Examination (IR)

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Showing 1–3 of 15 questions

Question 1

Upon receiving approval via a majority vote of its shareholders, a mutual fund is permitted to:

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    change from a diversified company to a non-diversified company.
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    engage in margin transactions.
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    retain any dividends and capital gains that it earned on its portfolio rather than paying them out to the shareholders.
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    issue preferred stock.
Question 2

Fidelity Investments has two money market funds that is available to most investors. The Fidelity Cash Reserves fund (FDRXX) is currently yielding 0.10% while its Fidelity Municipal Money Market fund (FTEXX) is yielding 0.01%. One reason for this significant difference is that:

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    the Municipal Money Market fund pays interest that is free from state and local taxes.
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    the Municipal Money Market fund pays interest that is free from federal taxes.
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    interest earned on the Cash Reserves fund is subject to the alternative minimum tax.
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    the Municipal Money Market fund is insured by the FDIC, and this is not true of the Cash Reserves fund.
Question 3

The mortality guarantee of a variable annuity contract:

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    guarantees a fixed death benefit amount will pay to your beneficiaries upon your death.
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    guarantees that you can receive a monthly check of a specified amount as long as you live.
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    guarantees that both you and a person you specify as your beneficiary will continue to receive payments as long as one of the two of you is alive.
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    None of the above is a true statement about the mortality guarantee of a variable annuity contract.