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FINRA Series6 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers24%- Topics in communications, marketing, and solicitation activities
Topic 2: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions10%- Transaction processing and verification
Topic 3: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records50%- Product information, suitability, recordkeeping and transfers
Topic 4: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives16%- Account opening procedures and financial profile evaluation

FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:

1. Which of the following is not required to be included in a management company's prospectus?

A) the potential risks to which the company's investors are exposed
B) the financial statements of the company
C) a statement of the investment objective of the company
D) the various fees charged by the company


2. Your nephew has asked you to help him formulate a financial plan for his family. Scott is 27 years old and
has been employed as an associate with a law firm for two years. Sarah, his wife, is 26 years old and
works in the human resources department of a large corporation. The couple is childless now, but they
plan to begin a family in a few years. Together, they have accumulated $10,000 in a savings account and
recently inherited $40,000 cash. They expect to be able to start saving at least $5,000 annually since their
incomes more than meet their current needs. They each have employer-provided health insurance and
retirement plans. Both have excellent upward mobility potential in their careers. They currently pay taxes
at the marginal rate of 15%. Scott tells you that although they regularly read some of the more popular
financial investment magazines, neither feels particularly knowledgeable about the world of investments.
Based on this information, which of the following statements is true?

A) Although some money should be allocated to bond funds for diversification purposes, bond funds
should be underweighted in favor of stock funds.
B) Purchasing power risk is not an issue in their situation.
C) A greater than average percentage of their money should be invested in money market mutual funds to
meet their needs for liquidity.
D) A greater than average percentage of their money should be invested in municipal bonds to minimize
their currently high tax bill.


3. Paul is 36 years old and is married with two children, ages eight and ten. Paul lays carpet for a living,
working as an independent contractor, and earns about $35,000 a year. His wife, Paula, is 33 years old,
drives a school bus and earns only $18,000 a year, but her job provides the family with low-cost health
insurance. They live conservatively and barely make ends meet. Paula recently inherited $180,000,
however, and the couple would like to invest it, with the goal that they can both retire when Paul turns
6 2.The inheritance also included an educational endowment for their children, so they will not have to
worry about saving for their children's college educations. Which of the following would not be a suitable
recommendation for the allocation of their investment monies?

A) Roth IRA
B) municipal bond fund
C) life insurance
D) aggressive growth stock fund


4. Mr. and Mrs. R. Retired are planning on traveling extensively throughout the U.S. in their new motor home
now that they have reached their golden years. Under FINRA rules, upon written instructions from Mr. and
Mrs. R. Retired, their broker is required to hold their mail for a maximum of:

A) 3 months.
B) none of the above. It is Mr. and Mrs. Retired's responsibility to establish a mail-hold through the post
office.
C) 1 month.
D) 2 months.


5. George Geek is 30 years old, single, and earns $103,000 a year as a software engineer for a small,
start-up IT company. George's company does not itself offer a retirement plan, and George is considering
his options. The current contribution limits for both the traditional IRA and Roth IRA plans is the lesser of
$ 5,000 or 100% of earned income. Which of the following statements applies to George's situation?

A) George's contributions to a Roth IRA will be tax-deductible as long as his income is below the threshold
specified by the IRS for the current year.
B) Assuming that George can contribute to both a traditional IRA and a Roth IRA under the current
income thresholds, his combined contribution to the two plans cannot exceed $5,000.
C) George's contributions to a traditional IRA will be tax-deductible.
D) Assuming that George can contribute to both the traditional IRA and the Roth IRA under the current
income thresholds, he will be allowed to contribute $5,000 to each of the plans.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: A
Question # 3
Answer: B
Question # 4
Answer: D
Question # 5
Answer: B

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