Series 6 Interactive Quiz – Product Types
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
🧠 Series 6 Interactive Quiz – Product Types
Test Your Knowledge on Investment Products
Understanding the various product types is essential for the Series 6 exam. This interactive quiz will help you reinforce key concepts and identify areas for review. Ready to test yourself?
📋 Question 1
Which of the following is a redeemable security?
A. Closed-end fund
B. Common stock
C. Open-end mutual fund
D. REIT
✅ Correct Answer: C
Explanation: Open-end mutual funds are redeemable directly with the fund at NAV. Closed-end funds trade on exchanges.
📋 Question 2
A client wants an investment with tax-deferred growth and potential for lifetime income. What product is most appropriate?
A. Fixed annuity
B. Mutual fund
C. Treasury bond
D. Variable annuity
✅ Correct Answer: D
Explanation: Variable annuities offer tax-deferred growth and optional lifetime income features through annuitization.
📋 Question 3
Which product type is most commonly used to fund retirement plans like 401(k)s?
A. UITs
B. Mutual funds
C. ETFs
D. Options
✅ Correct Answer: B
Explanation: Mutual funds are widely used in retirement accounts for diversification and automatic reinvestment.
📋 Question 4
A Unit Investment Trust (UIT) is best described as:
A. Actively managed, closed-end
B. Passively managed, fixed portfolio
C. An insurance product with a separate account
D. A fund with continuous IPO
✅ Correct Answer: B
Explanation: UITs are passively managed with a fixed portfolio and are not actively traded by managers.
📋 Question 5
Which investment product is most sensitive to interest rate changes?
A. Growth mutual fund
B. Long-term bond fund
C. Money market fund
D. Index fund
✅ Correct Answer: B
Explanation: Long-term bonds and bond funds are more affected by interest rate changes due to their duration.
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