FINRA Series 6 (Investment Company and Variable Contracts Products Representative): a 300-question practice bank for the real Securities & Investment Licensing standard, 6 full papers of 50 questions each with no repeats, every question citing the real regulation it comes from.
Every question in this bank cites a real source -- primarily FINRA Rule (55%) and SEA Rule (9%) of this exam's citations.
Correct answer: A. $12.00
Dollar cost averaging buys 30, 25, and 20 shares for $900 total; $900 / 75 shares = $12.00 average cost, which is below the $12.33 average price because more shares are bought when prices are low.
Correct answer: D. At a 10% discount
The market price is $2.00 below a $20.00 NAV, and $2.00 / $20.00 = 10% discount; closed-end shares trade on supply and demand rather than at NAV.
Correct answer: C. It decreases
When the actual return (3%) falls below the assumed interest rate (5%), the annuity unit value declines and the next payment is lower, even though the account earned a positive return.
Correct answer: C. It is a conservative earnings assumption used to compute the first annuity payment and serves as the benchmark against which actual returns are measured
The AIR is an actuarial assumption built into the initial payment; subsequent payments rise or fall depending on whether actual separate account performance exceeds or falls short of the AIR.
Correct answer: A. Life only (straight life)
A life only annuity pays only for the annuitant's lifetime with no guarantee to beneficiaries, so it carries the greatest risk to the annuitant and provides the largest monthly payment.