NASAA Series 65 Practice Test

Answer choices

1. A. Traditional IRA distributions are never taxable, for the described technical objective and its associated operational control requirements, for the stated scenario.
2. B. Qualified Roth IRA distributions can be tax-free, while traditional IRA distributions are generally taxable to the extent they represent untaxed amounts, for the described technical objective.
3. C. Both account types always provide tax-free contributions and distributions, for the described technical objective and its associated operational control requirements, as presented.
4. D. Roth IRA contributions always produce a current-year deduction, for the described technical objective and its associated operational control requirements, under the proposed approach.

Wrong-answer review

• A. Traditional IRA distributions are never taxable, for the described technical objective and its associated operational control requirements, for the stated scenario.: Traditional IRA distributions can be taxable.
• C. Both account types always provide tax-free contributions and distributions, for the described technical objective and its associated operational control requirements, as presented.: The accounts do not provide identical tax treatment.
• D. Roth IRA contributions always produce a current-year deduction, for the described technical objective and its associated operational control requirements, under the proposed approach.: Roth contributions are generally not deductible merely because they are Roth contributions.

Answer choices

1. A. The security's life must extend, as the organization’s selected response.
2. B. Prepayment risk disappears, within the ii. investment vehicle characteristics (25%) context.
3. C. The investor receives a guaranteed higher yield, for consideration.
4. D. Principal may return sooner, creating reinvestment risk.

Answer choices

1. A. Any option chosen by a majority, regardless of process, within the described operational context.
2. B. Prudence and the interests of plan participants and beneficiaries, not committee perks, as the organization’s selected response.
3. C. The fund with the highest stated return regardless of risk, under the organization’s defined implementation and exception-management process.
4. D. The personal benefit to committee members, as the proposed design for the complete governed operational workflow.

Answer choices

1. A. Negative operating cash flow proves the company is insolvent, for the required operational result and control objective.
2. B. Earnings and cash generation can differ because accrual accounting recognizes items before or after cash moves, for the stated requirement.
3. C. Net income is always identical to operating cash flow, as the primary implementation for the described business requirement.
4. D. Receivables are financing cash flows, for the described technical objective and its associated operational control requirements, as the organization’s selected response.

Answer choices

1. A. A written incident-response program designed to detect, respond to, and recover from unauthorized access or use and to provide required customer notice when the rule's conditions are met
2. B. A requirement to close every client account automatically, under the described iv. laws, regulations, guidelines, and unethical practices (30%) criteria, under the described iv. laws, regulations, guidelines, and unethical practices (30%) criteria, as described.
3. C. A policy of never notifying affected customers, under the described iv. laws, regulations, guidelines, and unethical practices (30%) criteria, as the recommended implementation across the complete governed service lifecycle.
4. D. A rule that only paper records are protected, under the described iv. laws, regulations, guidelines, and unethical practices (30%) criteria, as the proposed iv. laws, regulations, guidelines, and unethical practices (30%) approach.

Answer choices

1. A. Issuer credit risk because an ETN is an unsecured debt obligation, under the stated decision criteria.
2. B. FDIC insurance risk, as the selected approach for the stated technical and business outcome.
3. C. Voting dilution from new common shares, as the selected approach for the stated technical and business outcome, for review.
4. D. Direct ownership risk in the physical commodity because the ETN must hold it, under the proposed approach.

Answer choices

1. A. Producer earnings yield, for the required business outcome.
2. B. Federal funds effective rate, within the described operational context.
3. C. Consumer Price Index (CPI), for this task.
4. D. Real GDP, under the proposed approach.

Answer choices

1. A. A permissible marketing practice because the partner may send business, under this approach.
2. B. A trade confirmation requirement, as the selected response to the described condition.
3. C. Improper disclosure of confidential client information, under the stated technical, operational, and governance constraints.
4. D. A required public filing, under the described iv. laws, regulations, guidelines, and unethical practices (30%) criteria, as described.

Answer choices

1. A. Any NAV the representative chooses before close, for the required business outcome.
2. B. The next NAV calculated after the order is received, as proposed.
3. C. The intraday exchange price at 2:15 p.m, as the selected response to the described condition.
4. D. The prior day's $18.40 NAV, within the described context.

Answer choices

1. A. 8%, as configured.
2. B. 6%, within this design.
3. C. 2%, in the described situation.
4. D. 10%, for the required business outcome.