Question

1.

An Investment Adviser MUST register with the SEC under which of the following conditions?

              I         When there is no state registration available in that state

            II         As soon as the adviser manages more than $100 million of assets

           III         As soon as the adviser manages more than $110 million of assets

           IV         That has an investment company as a client

	a.	I and II only
	b.	I and III only
c.		I, II, and IV
d.		I, III, and IV only

2.

In which step of the financial planning process would the financial planner identify strengths and weaknesses that will help or hinder the achievement of the client’s goals?

a.		Step 1 – Establish the relationship
b.		Step 2 – Gather information
c.		Step 3 – Analyze the data
		D. Step 4 – Develop the plan 3. An investment adviser suggests you buy a specific mutual fund through her company. Which of the following licenses may be relevant to this offer?               I         Series 6             II         Series 7            III         Series 22            IV         Series 66    A. I only B. I and IV only C. I, II, and IV only D. I, II, III, and IV 4. Which of the following is the logical second step in the budgeting process? A. Decide how much is to be saved or invested. B. List all the categories and amounts of fixed and discretionary expenditures. C. Estimate all of the income and income sources for the budget period. D. Eliminate all discretionary expenditures.

Answer 1

1. An Investment Adviser MUST register with the SEC under the condition I, III, and IV only

Explanation: Advisers with assets of $110 million or more must register with the federal government .

2. In the step 3 i.e. Analyze the data the financial planner identify strengths and weaknesses that will help or hinder the achievement of the client’s goals.

Explanation: In this sstep the financial planner analyzes the client’s information, to gain an understanding of the client’s financial situation.He assesses the strengths and weaknesses of the client’s current financial situation and also compares them with to the client’s need,objectives and preferences.

3.An investment adviser suggests you buy a specific mutual fund through her company, she must have Series 6 ,Series 7 and Series 66 licence.

Series 6 is a securities license entitling the holder to register as a company's representative and sell mutual fund
Series 7 allow the to trade many securities such as stocks, mutual funds, options,but not real estate or life insurance products.

4. The logical second step in the budgeting process is Estimate all of the income and income sources for the budget period.