Free Series 65 Practice Questions
Original questions with explanations
These original Series 65 practice questions are educational examples designed to exercise reasoning. They are not recalled exam items and do not imply access to live or confidential test content.
Question 1
Which bond has the greatest interest-rate sensitivity, all else equal?
- A. A short-duration bond
- B. Cash
- C. A floating-rate note at reset
- D. A long-duration bond
Answer and explanation
D. A long-duration bond Duration estimates price sensitivity to interest-rate changes.
Question 2
A client needs funds in one year. Which factor is most important before recommending a volatile asset?
- A. Recent performance alone
- B. Adviser compensation
- C. A neighbor’s portfolio
- D. Time horizon, liquidity need, risk capacity, and objectives
Answer and explanation
D. Time horizon, liquidity need, risk capacity, and objectives Recommendations must fit the client’s complete circumstances and constraints.
Question 3
What does diversification primarily reduce?
- A. Inflation automatically
- B. Every possible loss
- C. Unsystematic risk from concentrated holdings
- D. All market risk
Answer and explanation
C. Unsystematic risk from concentrated holdings Diversification reduces issuer-specific risk but not systematic market risk.
Question 4
An adviser has a material conflict. What is required?
- A. Concealment
- B. Oral denial
- C. A guaranteed return
- D. Full and fair disclosure plus conduct consistent with fiduciary obligations
Answer and explanation
D. Full and fair disclosure plus conduct consistent with fiduciary obligations Clients need material information to provide informed consent, and disclosure alone may not cure every conflict.
Question 5
What should control Series 65 preparation?
- A. Market news alone
- B. Recalled live items
- C. The current NASAA outline, study guide, and referenced law
- D. Series 63 law only
Answer and explanation
C. The current NASAA outline, study guide, and referenced law The official outline defines both investment and regulatory coverage.
How to Review Your Results
For every missed item, name the tested concept, explain why the correct option is best, and identify the clue that rules out each distractor. Then review the corresponding official content domain.