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 new account form captures essential customer information including identity, financial status, investment objectives, and risk tolerance required by FINRA rules.

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

In a JTWROS account, the right of survivorship means the deceased owner's share automatically transfers to the surviving owner(s), bypassing probate.

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

Tenants in Common allows owners to hold specified, unequal shares, and each owner's share is passed to their designated heirs rather than automatically to the surviving co-owner.

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

An UGMA account is a custodial account where a custodian manages the assets on behalf of the minor, and the assets irrevocably belong to the minor upon reaching the age of majority.

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

A Corporate Resolution is a formal document passed by the board of directors that identifies who is authorized to act on the corporation's behalf in financial matters.

Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam Practice Test

Series 6 – Investment Company and Variable Contract Products Representation Qualification Exam Practice Test

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