Thank you guys…that helps. I came across this question on another test…can you give me your input?
Janet Johnson, a registered representative and licensed insurance agent, meets in the home with a 50-year-old widower to discuss what to do with life insurance proceeds of his deceased spouse. The widower is apprehensive about liquidity. Johnson hands him a prospectus for a variable annuity and recommends the funds be conservatively invested in separate accounts within the annuity. Johnson takes time to carefully explain and illustrate a 6% gross return over a 20-year period and further explains that earnings will grow tax deferred. What did Johnson do wrong?
A) Johnson waited until the presentation to deliver the prospectus.
B) Johnson recommended a variable annuity to an individual who is looking for liquidity.*
C) The separate accounts should have been presented as mutual funds.
D) Nothing. Johnson made a careful, individualized presentation of a securities product.
The regulatory element of a representative’s continuing education will need to be completed within 120 days of certain anniversaries of their licensing. Which of the following is not an anniversary where a representative would be required to complete the regulatory element of their continuing education?
A) 3rd anniversary
B) 2nd anniversary
C) 5th anniversary
D) 11th anniversary
Juan owns 1,000 shares of the big box retailer Buystuff, Inc. (Ticker: BSTF). He has owned the shares for 10 years and they have appreciated nicely. If Juan desires to generate income from the BSTF position, he could do which of the following?
A) Sell 10 BSTF calls*
B) Buy 10 BSTF calls
C) Buy 10 BSTF puts
D) Sell 10 BSTF puts
For the second question…I understand that there is a 2nd anniversary requirement and every 3 years after, but the question asked “not an anniversary date.”
These were not on the Achievable practice exam but didn’t know if i can ask for your input to help me understand more.