Nathan had a net worth of 25000 at the beginning of this yea

Nathan had a net worth of $25,000 at the beginning of this year. He paid off his $10,000 car loan with the proceeds of a bond that matured during the year. He also sold his $5,000 of his large cap stock and bought small cap stock with the proceeds. What is Nathan’s net worth at the end of the year?

$15,000

$25,000

$35,000

$40,000

Which of the following entities is excluded from the requirement to register with the SEC under the Investment Advisers Act of 1940?

Financial planners who sell less than $500,000 of securities per year.

Financial planners who give investment advice for a fee but do not sell any products.

A bona fide financial publication with general and regular circulation.

Investment advisers who provide advice concerning investing only in mutual funds and are paid a fee.

A Chapter 13 bankruptcy filing is:

              I         For Businesses

            II         For individuals

           III         Either voluntary or involuntary

           IV         Voluntary only   

I and III only

I and IV only

I, II, and IV only

II and IV only

Which of the following are components of the fiduciary responsibility?

              I         Sell only suitable investments

            II         The Client’s interest is placed before the planner’s interest

           III         Act in accordance with the Prudent Man Standard

           IV         Exercise diligence   

I and II only

II only

II, III, and IV only

I, II, III, and IV

Solution

1)   $25,000 ,

Nathan’s net worth = $25,000 at the beginning + $10000 proceed from bond - $10,000 payment of car loan - $5,000 large cap stock + $5000 small cap stock

=25000 + 10000 - 10000 - 5000 + 5000

=$25000