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Free Series 65 Practice Questions

10 free, exam-style Uniform Investment Adviser Law Examination (Series 65) practice questions with answers and explanations. No signup required. Work through them below, then take the full free Series 65 practice test to study every exam domain.

Question 1

A certified public accountant prepares tax returns and, during client meetings, occasionally suggests that clients consider investing in municipal bonds for tax efficiency. The accountant does not charge a separate fee for this advice. Under the Uniform Securities Act, this accountant is:

  1. Required to register as an investment adviser because securities advice was given
  2. Excluded from the definition of investment adviser in this context
  3. Exempt from registration under the de minimis exemption for this purpose
  4. Required to register as an investment adviser representative for this purpose
Show answer & explanation

Correct answer: B - Excluded from the definition of investment adviser in this context

Question 2

A bond with a 5% coupon rate is currently trading at 103. Which of the following correctly ranks the yields from lowest to highest?

  1. Nominal rate, current yield, yield to maturity, yield to call
  2. Yield to call, yield to maturity, current yield, nominal rate
  3. Current yield, nominal rate, yield to call, yield to maturity
  4. Yield to maturity, yield to call, nominal rate, current yield
Show answer & explanation

Correct answer: B - Yield to call, yield to maturity, current yield, nominal rate

Question 3

An investment adviser serves as the general partner of a limited partnership in which several advisory clients are limited partners. Under federal and state regulations, this arrangement means the adviser:

  1. Must obtain written consent from each limited partner annually
  2. Is deemed to have custody of client assets for this purpose
  3. Must register separately as a broker-dealer in the standard framework
  4. Is exempt from the surprise audit requirement under accepted convention
Show answer & explanation

Correct answer: B - Is deemed to have custody of client assets for this purpose

Question 4

An investment adviser representative is evaluating two portfolio managers. Manager A oversees a client's entire retirement portfolio. Manager B manages a single sector fund within a broadly diversified account. To fairly evaluate each manager's risk-adjusted performance, the IAR should use:

  1. Sharpe ratio for Manager A and Treynor ratio for Manager B
  2. Treynor ratio for Manager A and Sharpe ratio for Manager B
  3. Sharpe ratio for both managers as commonly understood
  4. Jensen's alpha for Manager A and Treynor ratio for Manager B
Show answer & explanation

Correct answer: A - Sharpe ratio for Manager A and Treynor ratio for Manager B

Question 5

A 62-year-old employee earned $155,000 in FICA wages in 2025 and wants to maximize catch-up contributions to her employer's 401(k) plan in 2026. Under SECURE 2.0, which of the following is correct?

  1. She may contribute a catch-up of $11,250, and it must be designated as Roth
  2. She may contribute a catch-up of $8,000, and it may be either pre-tax or Roth
  3. She may contribute a catch-up of $11,250, and it may be either pre-tax or Roth
  4. She may contribute a catch-up of $8,000, and it must be designated as Roth
Show answer & explanation

Correct answer: A - She may contribute a catch-up of $11,250, and it must be designated as Roth

Question 6

An investor in the 32% marginal tax bracket is comparing a 4.25% municipal bond to taxable alternatives. The taxable-equivalent yield of the municipal bond is approximately:

  1. 2.89% for this purpose
  2. 5.61% when applied properly
  3. 6.25% under standard market practice
  4. 13.28% in the standard framework
Show answer & explanation

Correct answer: C - 6.25% under standard market practice

Question 7

Under the Uniform Securities Act, the state securities Administrator has the authority to do all of the following EXCEPT:

  1. Issue a cease-and-desist order without a prior hearing
  2. Subpoena witnesses located outside the state as ordinarily interpreted
  3. Impose a criminal fine of $5,000 per violation for this purpose
  4. Deny a registration and require an opportunity for hearing
Show answer & explanation

Correct answer: C - Impose a criminal fine of $5,000 per violation for this purpose

Question 8

During the annuity phase of a variable annuity, the annuitant's most recent monthly payment was $1,400. If the separate account performance for the current period exceeds the assumed investment return, the next payment will be:

  1. Equal to $1,400 because payments are fixed once annuitization begins
  2. Higher than $1,400 in the typical case
  3. Lower than $1,400 due to increased tax liability on gains
  4. Recalculated based on the original purchase payment amount
Show answer & explanation

Correct answer: B - Higher than $1,400 in the typical case

Question 9

An investor sells 200 shares of XYZ Corp. at a loss on March 10. On March 28, the investor purchases 200 shares of XYZ Corp. Under the wash sale rule, which of the following is TRUE?

  1. The loss is disallowed and added to the cost basis of the newly purchased shares
  2. The loss is deductible because the repurchase occurred more than 15 days later
  3. The loss is deductible up to the $3,000 annual capital loss limit
  4. The loss is deductible because it involves a separate tax lot for this purpose
Show answer & explanation

Correct answer: A - The loss is disallowed and added to the cost basis of the newly purchased shares

Question 10

A client instructs her investment adviser to purchase 500 shares of ABC stock. The adviser executes the trade the following morning when the market opens at a favorable price. This action is an example of:

  1. Unauthorized trading because the adviser chose the execution time
  2. Discretionary authority requiring written power of attorney under accepted convention
  3. Authorized trading because the client specified the security, action, and amount
  4. A prohibited practice under the Uniform Securities Act as ordinarily interpreted
Show answer & explanation

Correct answer: C - Authorized trading because the client specified the security, action, and amount

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