Finra Series-6 Exam - Topic 8 Question 7 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 7
Topic #: 8

Which of the following statements regarding both a Uniform Gifts to Minors account (UGMA) and a Uniform Transfers to Minors account (UTMA) is false?

AThere can be only one custodian named on the account.

BThe account must be established in the name of one minor child only.

COnce established, the account is irrevocable.

DThe assets must be re-registered in the minor child's name when the child turns 18.

Show Suggested Answer

Suggested Answer: D

The false statement regarding both a UGMA and a UTMA is that the assets must be re-registered in the minor child's name when the child turns 18. The rule differs between the two types of accounts. The UGMA requires that the assets must be re-registered when the child reaches the ''age of majority,'' as defined by the state, and the definition differs among states. Under the UTMA, the transfer of the account can be delayed until the minor child has reached the age of 25.

by Ceola at May 07, 2022, 11:44 AM

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Ligia

3 months ago

I disagree with C, I thought accounts could be revoked under certain conditions.

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Lynelle

3 months ago

Wait, the assets have to be re-registered at 18? That’s surprising!

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Lashunda

3 months ago

B is correct, only one minor per account.

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Sharee

4 months ago

I thought you could have multiple custodians?

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Goldie

4 months ago

A is true, only one custodian allowed.

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Taryn

4 months ago

I vaguely recall that the assets don't have to be re-registered at 18 for UTMA, so D might be the false statement here.

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Donette

4 months ago

I practiced a question similar to this, and I think all accounts are irrevocable once set up, so C could be the false one.

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Rosio

4 months ago

I'm not entirely sure, but I feel like the account can only be for one minor child, which makes B seem true.

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Marylin

5 months ago

I think I remember that there can actually be more than one custodian for these accounts, so A might be the false statement.

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Yong

5 months ago

This question seems straightforward, but I want to make sure I get it right. I believe the three types of transport nodes are NSX Edges, NSX Controllers, and Physical routers. I'll carefully review the options to confirm.

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Haydee

5 months ago

Okay, I've got this. The question is asking for a way to express the concept that outputs depend on all the inputs. Option A, "Y = f(Xn)," is the mathematical representation of that relationship. I'm confident that's the correct answer.

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Verlene

5 months ago

Okay, I've got this. Organizational units responsible for producing products or services and controlling their costs would be production cost centers. That's option A.

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