Free FINRA Series-6 Exam Questions

Become FINRA Certified with updated Series-6 exam questions and correct answers

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Total 328 Questions | Updated On: Mar 06, 2026

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Question 1

Which of the following statements regarding CMOs is false?

A : CMOs are zero-coupon bonds that are backed by real estate.

B : Relative to other bonds, CMOs are illiquid.

C : CMO investors are divided into classes, and the class determines when the investor will receive payments of principal.

D : CMOs are considered to have lower risk and, therefore, offer lower returns.

Answer: A

Question 2

Paul is 36 years old and is married with two children, ages eight and ten. Paul lays carpet for a living, working as an independent contractor, and earns about $35,000 a year. His wife, Paula, is 33 years old, drives a school bus and earns only $18,000 a year, but her job provides the family with low-cost health insurance. They live conservatively and barely make ends meet. Paula recently inherited $180,000, however, and the couple would like to invest it, with the goal that they can both retire when Paul turns 62. The inheritance also included an educational endowment for their children, so they will not have to worry about saving for their children’s college educations. Which of the following would not be a suitable recommendation for the allocation of their investment monies?

A : municipal bond fund

B : aggressive growth stock fund

C : Roth IRA

D : life insurance

Answer: A

Question 3

By investing in a diversified portfolio, an investor will:

A : lower both his risk and his expected return.

B : lower his risk without affecting his expected return.

C : lower his risk and increase his expected return.

D : eliminate all the market risk associated with his investment portfolio.

Answer: B

Question 4

A retirement plan under which the benefit to be paid upon retirement is specified when an employee is signed up for the plan is known as a:

A : 401(k) plan.

B : SIMPLE-IRA.

C : defined benefit plan.

D : defined contribution plan.

Answer: C

Question 5

The total of a mutual fund’s front-end load, rear-end load, and 12b-1 fees may not exceed:

A : 10.0% of the fund’s offer price.

B : 10.0% of the fund’s net asset value.

C : 8.5% of the fund’s offer price.

D : 8.5% of the average annual net assets of the fund.

Answer: C

Page: 1 / 66

Total 328 Questions | Updated On: Mar 06, 2026

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