A corporation offers an unsecured, 90-day promissory note to fund payroll and inventory. Which instrument is being described?
A. A revenue bond
B. A negotiable bank CD
C. A Treasury receipt
D. Commercial paper
Source: PRIMARY -- Glossary entry 'Commercial Paper'
A U.S. investor earns 6% in local-currency terms on a foreign bond, but that foreign currency depreciates 10% against the dollar during the holding period. Ignoring compounding details, what is the best conclusion about the dollar return?
A. It must equal positive 16%
B. Currency movement cannot affect a bond return
C. It is guaranteed to equal positive 6%
D. Currency loss can outweigh the local gain
Source: PRIMARY -- Heading 'Special Risks of International Investing'; changes in currency exchange rates
Bond debt service is payable primarily from tolls generated by a newly constructed bridge. Which security best fits?
A. A municipal revenue bond
B. A general obligation bond backed by all federal taxes
C. A Treasury note
D. A corporate income bond
Source: PRIMARY -- Section listing the two common municipal-bond types, paragraph 'Revenue bonds'
A self-employed consultant operates without forming a corporation, LLC, or partnership. For client classification and liability analysis, what structure is this?
A. A separate C corporation
B. A sole proprietorship
C. A charitable trust
D. A municipal issuer
Source: PRIMARY -- Heading 'Sole Proprietorships'; unincorporated business owned by one individual
An IAR applicant has a reportable regulatory event requested by Form U4. What is the appropriate filing approach?
A. Accurate Form U4 disclosure and required later amendments
B. Omit it if the applicant believes it is unfair
C. Mention it only to friends
D. Wait until a client discovers it
Source: PRIMARY -- Form U4 and instructions; disclosure questions and reporting pages
