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FINRA Investment Company and Variable Contracts Products Representative Examination (IR) Sample Questions:
1. The dividends distributed by which of the following are taxed as ordinary income?
A) real estate investment trusts
B) mutual funds
C) IBM
D) closed-end investment companies
2. The Securities Exchange Act of 1934:
I. regulates the market for new issues.
II. delineates the registration requirements for investment advisers.
III. regulates secondary market activities.
IV. requires that officers and some other employees of member firms submit their fingerprints to the U.S.
attorney general's office.
A) II and III only
B) III and IV only
C) I, II, III, and IV
D) I and II only
3. Which of the following is a characteristic of a mutual fund?
A) shares are sold on exchange floors
B) shares are bought and sold through the fund
C) shares may sell below net asset value
D) the fund has a fixed number of shares that can be sold
4. Which of the following securities laws regulates the organizational structure and day-to-day operations of
investment companies?
A) The Investment Company Act of 1940
B) The Securities Act of 1933
C) The Investment Advisers Act of 1940
D) The Securities Exchange Act of 1934
5. Ralph has a traditional IRA from which he has yet to make any withdrawals. Ralph will be turning 70 1/2 in
June, 2011.According to the required minimum distribution rule associated with traditional IRAs, Ralph is
required to start withdrawing funds from this account:
A) on April 15, 2011.
B) on April 15, 2012.
C) no later than the day after he turns 70 1/2 .
D) on April 1, 2012.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: D |







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