Free Series 65 Practice Test: 10 Questions with Explanations

Looking for free Series 65 practice questions? Below are 10 original questions with answers and plain-English explanations, covering all four parts of the exam. First, a quick look at the real test.

What the Series 65 is

The Series 65 is the Uniform Investment Adviser Law Examination. NASAA (the North American Securities Administrators Association, the group of state securities regulators) writes it. FINRA (the Financial Industry Regulatory Authority) runs it. It is designed to qualify you as an investment adviser representative (IAR): a person who gives investment advice to clients for a fee.

The official format:

• 140 multiple-choice questions: 130 scored plus 10 unscored pretest questions.
• 180 minutes to finish.
• Pass: at least 92 of the 130 scored questions correct. NASAA says the pass mark is not 70% and is not figured as a percentage.
• Closed book, with your result shown when you finish.
• Fee: $187, paid to FINRA.
• Corequisite: none, per FINRA.

You don’t need a firm sponsor: you can open an enrollment window yourself through FINRA.org. FINRA then gives you a 120-day window to test.

Sources: NASAA Series 65, FINRA Series 65, and NASAA Exam FAQs, as of Oct 15, 2026.

What the exam covers

NASAA’s outline (effective June 12, 2023) splits the 130 scored questions four ways:

• Economic Factors and Business Information: 15% (20 questions)
• Investment Vehicle Characteristics: 25% (32 questions)
• Client Investment Recommendations and Strategies: 30% (39 questions)
• Laws, Regulations, and Guidelines, Including Prohibition on Unethical Business Practices: 30% (39 questions)

Our 10 questions follow roughly that mix: 2, 2, 3, and 3.

Source: NASAA Series 65 Outline (PDF), as of Oct 15, 2026.

How to use this practice set

• Time yourself. 180 minutes for 140 questions is about 1.3 minutes each, so allow about 13 minutes for these 10.
• Answer before you peek, then read every explanation, even on the ones you got right.
• It’s a quick check, not a score prediction.

10 free Series 65 practice questions

These are original questions written for this post. They are not from any real FINRA or NASAA exam.

1. (Economics) A company has $600,000 in current assets, including $200,000 of inventory, and $400,000 in current liabilities. What is its quick ratio?

A. 0.5
B. 1.0
C. 1.5
D. 2.0

Answer: B. The quick ratio leaves out inventory, because inventory can be slow to turn into cash. ($600,000 − $200,000) ÷ $400,000 = 1.0. Choice C is the current ratio, which keeps inventory in.

2. (Economics) Which type of risk can a client reduce by spreading money across many different companies and industries?

A. Interest rate risk
B. Inflation risk
C. Issuer-specific (business) risk
D. Market risk

Answer: C. Risk tied to one company is unsystematic, and diversification can shrink it. Interest rate, inflation, and market risk are systematic: they hit the whole market.

3. (Vehicles) A bond with a 5% coupon is trading at 95 (below par). Which statement is true?

A. Its yield to maturity is lower than its coupon rate
B. Its current yield is lower than its coupon rate
C. Its yield to maturity is higher than both its current yield and coupon rate
D. Its coupon rate, current yield, and yield to maturity are all equal

Answer: C. A discount bond pays $50 a year on a $950 price, so the current yield is about 5.26%. The yield to maturity (YTM) is higher still, because the buyer also gains $50 when the bond pays back $1,000 at maturity. For a discount bond: coupon < current yield < YTM.

4. (Vehicles) Which feature separates an exchange-traded fund (ETF) from a traditional open-end mutual fund?

A. ETF shares trade on an exchange throughout the day at market prices
B. ETFs never hold stocks
C. ETF shares are bought and redeemed only with the fund company at end-of-day NAV
D. ETFs cannot track an index

Answer: A. ETF shares trade like stocks during market hours. A traditional mutual fund is bought from and redeemed with the fund at its net asset value (NAV), figured once a day after the close.

5. (Client recommendations) Luis, 34, wants retirement savings he can withdraw tax-free later. He doesn’t need a tax deduction today. Which account fits best?

A. Traditional IRA with deductible contributions
B. Roth IRA
C. Taxable brokerage account
D. Fixed annuity bought with after-tax money

Answer: B. Roth IRA contributions go in after tax, and qualified withdrawals come out tax-free. A traditional IRA gives the deduction now but taxes withdrawals later. Gains in a fixed annuity grow tax-deferred, but the earnings are taxed when withdrawn.

6. (Client recommendations) A client needs $40,000 for a home down payment in 10 months and can’t afford to lose any of it. Which is the most suitable choice?

A. Small-cap growth fund
B. 20-year corporate bond
C. Treasury bills or a money market fund
D. High-yield bond fund

Answer: C. A short time horizon and a need to protect principal point to cash equivalents. Stocks can drop fast, long bonds lose value when rates rise, and high-yield bonds add credit risk.

7. (Client recommendations) A client puts $500 into the same mutual fund every month, whatever the price. In a market where prices go up and down, what usually happens?

A. The average cost per share is lower than the average price per share
B. The average cost per share is higher than the average price per share
C. The client is guaranteed a profit
D. The client is protected against loss in a falling market

Answer: A. This is dollar-cost averaging. A fixed dollar amount buys more shares when prices are low and fewer when prices are high, which pulls the average cost below the average price. It doesn’t prevent losses.

8. (Laws and ethics) Under the Uniform Securities Act, which person is generally excluded from the definition of an investment adviser?

A. A person who manages stock portfolios for 20 clients for a fee
B. An accountant whose investment advice is solely incidental to the accounting practice
C. A financial planner who charges a flat fee for written plans that recommend securities
D. A person who emails personalized stock picks to paying subscribers

Answer: B. Lawyers, accountants, engineers, and teachers are excluded when their advice is only incidental to their profession. The other three give securities advice for pay as a business.

9. (Laws and ethics) Which action by an investment adviser is an unethical business practice?

A. Giving clients a written contract that spells out the fee
B. Borrowing $10,000 from a retail client who is a longtime friend
C. Disclosing in writing that the firm earns extra pay on a recommended product
D. Turning down a client whose goals the firm can’t serve

Answer: B. NASAA treats borrowing money or securities from a client as unethical. The exceptions are a client that is a broker-dealer, an affiliate of the adviser, or a financial institution in the lending business.

10. (Laws and ethics) Dana passed the Series 65 yesterday. Which statement is accurate?

A. Dana can start giving paid advice today in any state
B. Dana can start giving paid advice once the state grants a license or registration
C. Passing the exam replaces the need for state registration
D. Passing the exam makes Dana a FINRA member

Answer: B. NASAA says passing the exam does not give the right to transact business before the state grants a license or registration.

Not sure how much prep you need? See how long to study for the Series 65 on your own.

How to score yourself and what to do next

Count your correct answers, then note which part your misses came from. That pattern matters more than the total.

• Missed questions 1–2: review financial ratios and types of risk.
• Missed questions 3–4: review bond yields and fund types.
• Missed questions 5–7: practice matching products to a client’s time horizon, taxes, and risk.
• Missed questions 8–10: study definitions and unethical practices, which are 30% of the scored exam.

The real bar is 92 of 130 scored questions in 180 minutes, so 10 questions can’t predict your result. Move to longer timed sets as exam day nears.

The bottom line

The Series 65 is a 180-minute, closed-book exam with 130 scored questions, and you need at least 92 right. Client recommendations plus laws and ethics make up 60% of the scored questions. Use free practice questions to find weak spots, then study them against NASAA’s outline.

Exam facts checked against NASAA’s Series 65 page, Exam FAQs, and outline (June 2023), plus FINRA’s Series 65 page, as of Oct 15, 2026. Rules can change, so confirm with FINRA, NASAA, and your state regulator before you test. ebooklessons.com is an independent study aid and is not affiliated with FINRA or NASAA.