Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam Customer Accounts & Suitability

Question 1

When opening a new customer account, which document is the representative primarily responsible for completing?

Accepted Answer

The new account form (customer profile)

Answer

The prospectus acknowledgment form

Answer

The trade confirmation slip

Answer

The 1099 tax form

Question 2

In a Joint Tenants with Right of Survivorship (JTWROS) account, what happens to the account assets when one owner dies?

Accepted Answer

Assets pass entirely to the surviving joint owner(s) without going through probate

Answer

Assets are split equally among the surviving owners and the deceased's estate

Answer

Assets are frozen until the estate is settled

Answer

Assets revert to the broker-dealer

Question 3

Which type of joint account allows each owner to hold unequal shares that can be passed to heirs through their estate?

Accepted Answer

Tenants in Common (TIC)

Answer

Joint Tenants with Right of Survivorship (JTWROS)

Answer

Community Property account

Answer

Partnership account

Question 4

A Uniform Gifts to Minors Act (UGMA) account is best described as:

Accepted Answer

A custodial account where an adult manages assets for a minor until the minor reaches majority

Answer

A retirement account for minors that converts at age 59½

Answer

A trust account requiring court supervision

Answer

A joint account between a parent and child with equal ownership rights

Question 5

When a corporation opens a brokerage account, which document authorizes specific individuals to trade on behalf of the corporation?

Accepted Answer

Corporate Resolution

Answer

Articles of Incorporation

Answer

Certificate of Good Standing

Answer

Annual Report

Question 6

Under FINRA rules, how frequently must a broker-dealer send account statements to customers with activity or positions?

Accepted Answer

Quarterly

Answer

Weekly

Answer

Monthly

Answer

Annually

Question 7

Which of the following is NOT required information on a new account form for a Series 6 registered representative?

Accepted Answer

Customer's employer's annual revenue

Answer

Customer's investment objectives

Answer

Customer's tax identification number

Answer

Customer's financial situation and needs