Finra Series-6 Exam - Topic 5 Question 91 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 91
Topic #: 5

[All Series-6 Questions]

Connie Serve placed an order to purchase five, $1,000 Treasury bonds in the secondary market on Tuesday, October 12th.

Connie will be required to pay for this purchase on which day?

ATuesday, October 12th.

BWednesday, October 13th.

CThursday, October 14th.

DFriday, October 15th.

Show Suggested Answer

Suggested Answer: D

The true statement is that the separate account must register as an investment company under the Investment Company Act of 1940. The premiums paid by investors for variable life insurance (less numerous charges) are invested in subaccounts within the separate account, and the earnings of the subaccounts are used, in turn, to make payments to the owners of variable life insurance policies, but not to any of the other policyholders of the company, such as the fixed annuity investors. The insurance company pays its operating expenses out of its general account.

by Willow at Sep 19, 2024, 06:20 PM

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Beckie

6 months ago

No way it’s Thursday!

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Shawn

6 months ago

Seems right, but I’m not 100% sure.

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Ashlyn

6 months ago

I thought it was the same day?

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Terina

7 months ago

Definitely Wednesday, October 13th!

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Jeanice

7 months ago

Payment is usually due the next business day.

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Marsha

7 months ago

I’m a bit confused about the exact settlement dates. Could it be Thursday instead? I need to double-check my notes.

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Willow

7 months ago

This question feels familiar; I think we practiced a similar one in class. I want to say the answer is Wednesday.

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Rasheeda

7 months ago

I remember something about T+1 settlement for Treasury securities, but I'm not completely sure if that applies here.

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Youlanda

8 months ago

I think the payment for Treasury bonds usually settles on the next business day, so it might be Wednesday, October 13th.

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Kathrine

8 months ago

I'm pretty confident the answer is B. The question states Connie placed the order on Tuesday, October 12th, and in the bond market, the settlement is typically T+1, meaning the next business day. So she would have to pay for the bonds on Wednesday, October 13th.

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Chuck

8 months ago

Wait, I'm confused. Isn't the settlement period for Treasury bonds T+1, meaning one business day after the trade date? If that's the case, then the answer should be B, Wednesday, October 13th. I need to double-check that.

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Margart

8 months ago

Hmm, I'm a little unsure about this one. The question is asking when Connie has to pay, but it doesn't explicitly say when the settlement date is. I'll have to think this through carefully and review my notes on bond trading settlement periods.

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Lorrie

8 months ago

This seems pretty straightforward. The question is asking when Connie has to pay for the bonds, and the information given is that she placed the order on Tuesday, October 12th. So I'm guessing the answer is B, Wednesday, October 13th.

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Aleisha

8 months ago

Okay, I think I've got this. Since Connie placed the order on a Tuesday, the settlement would typically be two business days later, which would be Thursday, October 14th. So the answer is C.

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