Test taking tips...
You can read any number of text books on the subject of FINRA Exams, all of which cover more than enough information to pass the exam. Yet a minority of those taking the exam for the first time will actually pass. Individuals taking the exam for the first, second and even a third time as a group have a pass rate of less than than 70% (around 67-68%) with an average passing score of under 73%.
So what is the secret of passing the exam?
It is LEARNING HOW TO TAKE THE EXAM!
By practicing reading the FULL question TWICE, you will be able to better understand what it is they are truly asking you. Too many times we are in such a big hurry to get finished with the things that make us feel uncomfortable, we just breeze right through them, missing the finer point we may need to correctly answer the question. And the NASD is counting on you to do just that.
You have more than enough time to answer each question. An average of one minute and thirty-eight seconds per question, if you don’t think that is enough time, HOLD YOUR BREATH for a minute and thirty-eight seconds, 100+ times in a row. After doing that, you will definately learn how to RELAX and BREATHE. J (The writer of this book will not be held responsible for any one that actually tries to hold his breath for six hours!)
After reading your text book materials you will begin to re-enforce that knowledge through the art of TEST TAKING…
First, place your hand over the answers, not to peek at them until you have read the question twice. Read it the first time to find the fillers and distracters if there are any. Then read the question a second time to answer it for what they are really asking you.
Secondly, you will need to read every answer. Many times there are two answers correct, one just being more correct than the other.
An individual may contribute how much to their IRA each year?
Correct answer “D”
Answer “D” is the MOST correct. An individual may contribute up to $5000 of their EARNED income. What if they only earned $3000 in 2008? Then they could only contribute the $3000 or 100% of what they earned.
Your client is self-employed and unincorporated and would like to start a KEOGH (HR-10).
A KEOGH Plan allows for your client to contribute 20% of his AGI or $46,000, whichever is LESS. Your client has earned over $400,000 this past year, therefore he may contribute how much to his Individual Retirement Account?
Correct answer is “D”
The real question had nothing to do with the KEOGH account, the real question asked how much may he contribute to his IRA - which is $5,000 . He may not be able to deduct it from his taxes, however he can still contribute to a traditional IRA.
Take your time. READ THE FULL QUESTION before looking at all the answers. And don’t read more in to the question than they are asking for.
In addition, I would recommend the E. S. P. method for testing.
Eliminate the fillers and distracters from the question.
Select the best correct answer
PRAY ….. Have a little faith
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