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

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Showing 7–9 of 15 questions

Question 7

Marshall’s employer offers a 403(b) plan, and Marshall must decide into which of several mutual fund alternatives the contributions will be invested.

Regardless of other factors, which of the following would clearly not be a good choice?

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    a municipal bond fund
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    a fund that invests in stocks that are expected to experience high growth
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    a fund that invests almost exclusively in high-tech stocks
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    a fund that invests in both foreign and domestic stocks
Question 8

The American Funds family of funds offers numerous funds to investors. Among these are a U.S. government bond fund, a high-yield corporate bond fund, a diversified emerging markets fund, and a large stock growth fund. Of these four, the one that would expose the investor to the most social and political risk is its:

Select an option, then click Submit answer.

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    U.S. government bond fund.
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    diversified emerging markets fund.
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    large stock growth fund.
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    high-yield corporate bond fund.
Question 9

What did the Howey Decision?

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    provided for fixed annuities to be excluded from the definition of a security.
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    defined an investment contract as any investment of money in a common enterprise with the expectation of earning a profit from the efforts of others.
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    stipulated that all general partnerships were investment contracts and, therefore, securities, as defined by the Securities Exchange Act of 1934.
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    determined that certificates of deposit issued by a bank and insured by the FDIC did not qualify as securities, as defined by the Securities Exchange Act of 1934.