Updated: July 1, 2016. The Uniform Combined State Law Examination is called the Series 66 Exam. It was designed for candidates that need to register in certain states as investment adviser representatives or as securities agents. Topics include providing investment advice and completing securities transactions for clients. The test was developed by NASAA, and is administered by FINRA. Working through Series 66 sample questions is great for test prep. Start now with our free Series 66 practice exam. All questions have been updated for the new 2016 version of this exam.
Series 66 Practice Questions
Question 1 |
I only | |
I and II | |
I and III | |
III and IV |
Question 2 |
the liquidity to the investor | |
the suitability standards applied to investors | |
the regulatory scrutiny | |
all of the above are key differences |
Question 3 |
the trough | |
the peak | |
contraction | |
expansion |
Question 4 |
normal yield curve | |
positive yield curve | |
inverted yield curve | |
flat yield curve |
Question 5 |
guaranteed cash value | |
tax free proceeds to beneficiary upon death of the insured | |
money deposited into a separate account | |
all of the above |
Question 6 |
he may do so without prior notice | |
he is required to give at least 5 business days advance notification | |
he is required to give at least 3 business days advance notification | |
none of the above |
Question 7 |
lawyers | |
accounts | |
teachers | |
all of these |
Question 8 |
all business entities operating as registered investment advisers | |
all broker-dealers with the exception of sole proprietorships | |
both A and B | |
neither A nor B |
Question 9 |
this is permitted. | |
this is permitted so long as the client is provided with full disclosure. | |
this is permitted only with consent from the Administrator. | |
this is considered a violation of state and/or federal law. |
Question 10 |
6.9% | |
9.9% | |
18.0% | |
Not enough information to determine |
15% return times 40% chance = 6.0%
8% return times 30% chance = 2.4%
Negative 5% return times 30% change = 1.5% loss
Add them up and you get 6.0 + 2.4 − 1.5 = 6.9%
Question 11 |
credit risk | |
inflation risk | |
non-systematic risk | |
interest rate risk |
Question 12 |
529 plans | |
Equity indexed annuities | |
Whiskey warehouse receipts | |
All of the above |
Question 13 |
it qualifies as an exempt transaction under the USA | |
it is not considered a sale under the USA | |
it is an exempt transaction under the USA only if the collateral is an exempt security under the USA | |
the bank would have to be registered as a broker/dealer in order to effect this liquidation of collateral in the form of securities. |
Question 14 |
securities attorney | |
certified public accountant specializing in auditing publicly traded corporations | |
a public school employee | |
geological engineer |
Question 15 |
Treasury bond | |
Treasury note | |
Aaa-rated GO bond | |
NYSE listed corporation’s convertible bond |
Question 16 |
event readiness plans | |
disaster plans | |
business continuity plans | |
data back-up and emergency contact plans |
Question 17 |
all of the above | |
I and III | |
II and IV | |
II and III |
Question 18 |
internet cookies | |
private investigator | |
account application | |
credit reporting agencies |
Question 19 |
evidence that such a senior designation is bona fide and approved by a principal of the firm | |
the designation appearing on an approved SEC or State list | |
the representative having taken and passed the so-called Baby Boomer credentialing course given by AARP and other similar organizations | |
all of the above |
Question 20 |
13D | |
Form 4 | |
Rule 144 | |
Reg. T |
13D is filed when a certain level of beneficial ownership is attained; Form 4 is filed when any change in beneficial ownership takes place; Rule 144 is filed when control stock is sold by an officer of the firm — all three can impact a CEO.
List |
Series 66 Study Material
- Series 66 Study Guides – An overview of the best Series 66 study guides.
- Series 65 Practice Exam
Series 66 Exam
On the FINRA Series 66 Exam there are 110 multiple choice questions. Only 100 of these questions are scored, and the other 10 are pretest questions that may be used on future exams. You will be given 150 minutes to answer all of these questions. To get your Series 66 license you will need to get a passing test score, which is 75%.
This is a closed book exam and you will be provided only with scratch paper and a basic electronic calculator. You are not allowed to bring in any outside notes, books, or calculators. Scores are provided immediately after you finish your test. No prerequisites are needed to take this exam, but you will need to pass the Series 7 before you can register with a state.
Here are the topics covered along with the percentage of questions on each topic:
- Economic Factors and Business Information (5%)
- Investment Vehicle Characteristics (15%)
- Client Investment Recommendations and Strategies (30%)
- Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices (50%)
For a complete outline of each topic, you can review the Exam Specifications Outline that is published by NASAA.
This is a hard test, so you will want to spend a lot of time on your Series 66 exam prep. Working through sample questions and carefully reading the explanations is a great way to learn this material. Start your test prep right now with our free Series 66 practice questions.