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FINRA Series 6 Investment Company and Variable Contracts Products Representative Examination practice questions

243 free questions with answers and explanations.

Practice test
  1. 201.A registered representative is explaining the concept of a 'scheduled premium variable life' policy to a client. Which of the following is a distinguishing characteristic of this type of policy?Regulatory Fundamentals and General Product Knowledge
  2. 202.A client asks a registered representative about the differences between 'participating' and 'non-participating' separate accounts in variable life insurance. Which of the following statements accurately describes a 'participating' separate account?Regulatory Fundamentals and General Product Knowledge
  3. 203.A registered representative is discussing different types of investment companies with a client. They mention a company that issues a fixed number of shares that trade on a stock exchange, and whose price is determined by supply and demand rather than net asset value. Which type of investment company is being described?Regulatory Fundamentals and General Product Knowledge
  4. 204.A registered representative is explaining the role of the Securities and Exchange Commission (SEC) to a new client. Which of the following activities falls under the primary regulatory authority of the SEC?Regulatory Fundamentals and General Product Knowledge
  5. 205.A client, aged 45, is considering purchasing a variable annuity and is concerned about accessing their money before retirement without significant penalties. Which of the following features would be MOST relevant to their concern?Regulatory Fundamentals and General Product Knowledge
  6. 206.A client passes away and owned a variable annuity contract. The designated beneficiary contacts the registered representative to initiate the claim process. Which of the following documents is typically NOT required to process the death benefit claim?Processing Customer Orders and Transactions
  7. 207.A client with a variable annuity contract wants to change the designated beneficiary. Which of the following statements is true regarding this request?Processing Customer Orders and Transactions
  8. 208.A registered representative receives a verbal order from a client to purchase $10,000 worth of shares in an open-end management company. The representative executes the order, and the fund's NAV is $20.00 per share with a 5% front-end sales charge. How many shares will the client purchase?Processing Customer Orders and Transactions
  9. 209.A customer who purchased a variable annuity contract two years ago decides to surrender the contract. The contract has a current value of $120,000, and the customer's cost basis is $100,000. If the customer is 55 years old, what are the tax implications of this surrender?Processing Customer Orders and Transactions
  10. 210.A client is considering investing in a mutual fund and asks about the process for purchasing shares. The registered representative explains that after the order is received, the purchase will be executed based on the Net Asset Value (NAV) calculated at the close of the business day. This pricing method is known as:Processing Customer Orders and Transactions
  11. 211.A client places an order to purchase shares of a mutual fund. The registered representative must ensure that the client receives the fund's prospectus no later than which point in the transaction?Processing Customer Orders and Transactions
  12. 212.A registered representative receives a written customer complaint alleging that their account was mishandled, resulting in significant losses. Which of the following is the MOST appropriate initial action for the registered representative to take?Processing Customer Orders and Transactions
  13. 213.A registered representative receives a written complaint from a client alleging excessive trading (churning) in their investment account. What is the immediate and most critical action the representative must take?Processing Customer Orders and Transactions
  14. 214.Which of the following is NOT required to be included on a trade confirmation statement for a mutual fund purchase?Processing Customer Orders and Transactions
  15. 215.A registered representative receives a written complaint from a client alleging excessive trading (churning) in their variable annuity account. Which of the following is the MOST appropriate initial action for the representative to take?Processing Customer Orders and Transactions
  16. 216.A client places an order to purchase shares of a mutual fund. The registered representative must ensure that the client receives the fund's prospectus no later than which of the following times?Processing Customer Orders and Transactions
  17. 217.A client calls their registered representative on Tuesday morning and places an order to purchase $10,000 worth of XYZ Growth Fund. Assuming the order is placed before the market closes on Tuesday, when will the client's order typically be executed and priced?Processing Customer Orders and Transactions
  18. 218.A client verbally informs their registered representative that they want to redeem shares from their variable annuity contract. Which of the following is the MOST important step the representative must take next?Processing Customer Orders and Transactions
  19. 219.A client decides to purchase shares of an open-end investment company. The public offering price (POP) for these shares is determined by the Net Asset Value (NAV) plus which of the following?Processing Customer Orders and Transactions
  20. 220.A registered representative receives a verbal order from a client to purchase $10,000 worth of XYZ Growth Fund shares. The fund's public offering price (POP) is $20.00, and the sales charge is 5%. How many shares will the client purchase?Processing Customer Orders and Transactions
  21. 221.A registered representative receives a market order from a client to sell 100 shares of XYZ Mutual Fund. At what price will this order be executed?Processing Customer Orders and Transactions
  22. 222.A client decides to redeem shares from a variable annuity contract. Which of the following statements regarding the redemption process is most accurate?Processing Customer Orders and Transactions
  23. 223.Which of the following is a required item on a trade confirmation statement for a mutual fund purchase?Processing Customer Orders and Transactions
  24. 224.A client wants to purchase shares of a mutual fund with a front-end load. The fund offers breakpoints. To explain how breakpoints work, a registered representative should inform the client that a breakpoint allows for:Processing Customer Orders and Transactions
  25. 225.A client has $90,000 invested in a mutual fund family and wishes to purchase an additional $15,000 worth of shares in a different fund within the same family. The fund family's breakpoint schedule is as follows: $0-$99,999 (5.00% sales charge), $100,000-$249,999 (4.00% sales charge). What sales charge will the client pay on the new $15,000 purchase?Processing Customer Orders and Transactions
  26. 226.A client with a variable life insurance policy wants to transfer funds from one subaccount to another. Which of the following statements is TRUE regarding this transfer?Processing Customer Orders and Transactions
  27. 227.A registered representative learns that one of their clients has unexpectedly passed away. The client owned a variable annuity contract with a named beneficiary. What is the most important step the representative should take regarding the annuity contract?Processing Customer Orders and Transactions
  28. 228.A client wants to purchase shares of a mutual fund that imposes a contingent deferred sales charge (CDSC). This means the sales charge is incurred at which point?Processing Customer Orders and Transactions
  29. 229.A client requests to change the beneficiary on their variable annuity contract. Which of the following is the most appropriate action for the registered representative?Processing Customer Orders and Transactions
  30. 230.A client submits a written complaint alleging a registered representative engaged in unauthorized trading. According to FINRA rules, what is the firm's obligation regarding this complaint?Processing Customer Orders and Transactions
  31. 231.A client owns a variable annuity and wishes to transfer funds from the aggressive growth subaccount to the money market subaccount. Which of the following statements is true regarding this transaction?Processing Customer Orders and Transactions
  32. 232.A registered representative learns that a client, aged 62, who purchased a variable annuity contract five years ago, decides to surrender the contract entirely. The client originally invested $100,000, and the current contract value is $120,000. What is the tax implication for the client upon surrender?Processing Customer Orders and Transactions
  33. 233.A client wishes to purchase $25,000 worth of Class A shares of a mutual fund with a Net Asset Value (NAV) of $9.50 and a front-end sales charge of 5%. What is the Public Offering Price (POP) per share, and how many shares will the client purchase?Processing Customer Orders and Transactions
  34. 234.A registered representative (RR) notices that a long-time client, who frequently travels internationally, has started making unusually large and frequent wire transfers to various offshore accounts, often to different recipients. The client's business does not typically involve such transactions, and they become evasive when questioned about the purpose of these transfers. What is the RR's most appropriate initial action?Professional Conduct and Ethical Considerations
  35. 235.A client who holds a variable annuity contract passes away. The contract has a death benefit provision. Which of the following statements is TRUE regarding the death benefit?Processing Customer Orders and Transactions
  36. 236.A client, aged 58, is considering purchasing a variable annuity and is primarily concerned with the ability to transfer assets between subaccounts without incurring immediate tax liabilities. Which of the following statements accurately describes the tax implications of such transfers within a variable annuity?Regulatory Fundamentals and General Product Knowledge
  37. 237.A client places an order to purchase shares of a mutual fund at 2:30 PM ET on a Monday. The fund's Net Asset Value (NAV) is calculated daily at 4:00 PM ET. What price will the client pay for the shares?Processing Customer Orders and Transactions
  38. 238.A client decides to redeem shares from a variable annuity contract. The contract's Net Asset Value (NAV) is calculated once daily at 4:00 PM ET. If the client submits a redemption request at 1:00 PM ET on a Tuesday, what price will be used for the redemption?Processing Customer Orders and Transactions
  39. 239.A client wants to purchase shares of a mutual fund with an offering price of $10.50 and a Net Asset Value (NAV) of $10.00. The fund imposes a front-end sales charge. What is the sales charge percentage?Processing Customer Orders and Transactions
  40. 240.A registered representative receives a written complaint from a client alleging a misunderstanding regarding the performance of a variable annuity subaccount. The representative immediately resolves the issue to the client's satisfaction. What is the representative's next required action regarding this complaint?Processing Customer Orders and Transactions
  41. 241.A client receives a trade confirmation for a recent purchase of mutual fund shares. Which of the following details is NOT required to be included on this confirmation statement?Processing Customer Orders and Transactions
  42. 242.A client calls their registered representative on Tuesday morning and places an order to purchase shares of a mutual fund. The fund's prospectus states that its Net Asset Value (NAV) is calculated at the close of the New York Stock Exchange (NYSE) each business day. When will the client's order be executed?Processing Customer Orders and Transactions
  43. 243.A client with a variable life insurance policy wants to transfer funds between subaccounts. Which of the following statements is TRUE regarding this transaction?Processing Customer Orders and Transactions