Series6 Dumps Series6 Braindumps
Series6 Real Questions Series6 Practice Test Series6 Actual Questions
NASD Series 6
https://killexams.com/pass4sure/exam-detail/Series6
All of the following would create Deflation in the U.S. economy EXCEPT:
Increasing taxes
A decline in the general level of prices
Reduction in the supply of money
More government spending
Deflation is a general decline in the prices of goods and services. Deflation can occur from
an increase in taxes, less government spending, and a reduction in the money supply. It is usually caused by a slowdown in demand coupled with an adequate supply
The security that offers the best protection against purchasing power risk or inflation is
which of the following?
Treasury bond
Fixed annuity
Common stock
Certificate of deposit
Debt securities and investments that promise fixed rates of returns are the most susceptible to purchasing power risk or inflation. Fixed annuities, CD’s, and treasury bonds all fall
under these categories
An investor that holds a corporate bond until maturity will be exposed to all of the following risks EXCEPT:
Call risk
Inflationary Risk
Credit risk
Interest rate risk
At maturity date, it makes neither difference what the bonds coupon is nor its relationship to current interest rates. The bond always pays off at par. Inflation, credit risk, and call risk are
all risks associated with buying corporate bonds
Which of the following can be found on the corporate Balance Sheet?
Working Capital,
Accounts Payable,
Inventory,
Current Ratio
II, III, and IV
I, II, III, and IV
II and III only
I and II only
The balance Sheet is also known as the statement of financial condition it is used as a snapshot picture of a company at a specific date in time. The balance Sheet compares
corporate assets to liabilities, the total assets minus total liabilities equals net worth
Which of the following statements concerning Inflation are Correct?
A higher rate of inflation usually leads to increasing interest rates,
A higher rate of inflation usually leads to lower interest rates,
Inflation deteriorates purchasing power,
Inflation has no relationship to the rise in prices of good and services
I and III only
I, III, and IV
II, III, and IV
II and III only
Inflation is the economic condition that is characterized by continuously rising prices for
goods and services. Inflation deteriorates purchasing power and typically has a negative effect on interest-rate sensitive securities, a higher rate of inflation usually leads to increased interest rates
If the value of the US dollar declines relative to foreign currencies, which of the following would be true?
US exports would increase,
Foreign imports would decrease,
Foreign products become cheaper in the US,
US exports would decrease
II, III, and IV
II and IV only
I and II only
III and IV only
When the value of the US dollar is high, importers benefit and exporters suffer. When the
US dollar has weakened, importers suffer and exporters benefit. As the US dollar declines relative to foreign currencies, foreign products become more expensive to purchase in the US. US exports then become more cheaper and competitive for foreigners, thus resulting in an increase in US exports and a decrease of foreign imports into the United States
The risk found in trading “thinly held issues” or those that lack marketability is best known as:
Liquidity Risk
Exchange Rate Risk
Default Risk
Business Risk
Liquidity is the ability to convert assets into cash or cash equivalents without significant
loss