Series 65 Readiness Test

10 questions, balanced across the exam's topics. Answer each one, then submit for your practice readiness estimate and per-topic breakdown. This is a practice estimate — not a prediction or guarantee of your official exam result.

After your result, you can start studying right away: the first questions of the full practice bank are free, with no card required.

Question 1

a sinking fund is best defined as:

stock trading below its perceived intrinsic worth money set aside by an issuer to retire bonds before maturity a dividend paid in cash to shareholders stock of a large, established, financially sound company

Question 2

Which of the following best describes risk tolerance?

Reg BI's requirement of reasonable diligence and a sound basis for recommendations dividing a portfolio among asset classes to balance risk and return a customer's willingness and ability to endure investment volatility the obligation that each recommendation fit the particular customer's profile

Question 3

A company has $10 million in net income and 1 million shares outstanding. What is EPS?

$0.1 $10 $20 $5

Question 4

A rep's undocumented loan from a client violates rules on:

acceptable personal finance encouraged for rapport a private matter borrowing from customers (prohibited absent firm approval and a qualifying relationship)

Question 5

A 8% $1,000 par bond trades at 102. What is its current yield?

7.84% 15.68% 8% 8.34%

Question 6

A client buys a municipal bond at a premium of $1,000 over its face value. How must the premium be treated?

The client may elect to deduct the premium amortization each year as an investment expense The premium must be amortized over the life of the bond, reducing the bond's cost basis, and the amortization is not deductible The premium is ignored until maturity, when it is claimed as a capital loss The premium amortization is added to the client's taxable interest income each year

Question 7

A company has $12 million in net income and 1 million shares outstanding. What is EPS?

$6 $0.08 $13 $12

Question 8

A representative borrows $10,000 from a customer without firm approval. This is:

acceptable personal finance a private matter borrowing from customers (prohibited absent firm approval and a qualifying relationship) encouraged for rapport

Question 9

Which of the following best describes a money market fund?

a convertible bond's par value divided by its conversion ratio the annual increase in a discount bond's book value toward par a mutual fund investing in short-term, high-quality debt instruments the number of common shares a convertible bond converts into

Question 10

A client in her 30s, employed, with an emergency fund, a 30-year horizon for retirement, and a high risk tolerance, asks for a retirement portfolio recommendation. Which allocation is most suitable?

100% in a money market fund 100% in long-term bonds only A single speculative stock representing her employer's competitor A diversified portfolio weighted heavily toward equities, with a smaller fixed-income component

Unanswered questions count as incorrect. Your answers are graded on the server; no answer key is sent to your browser.

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