Series 66 NASAA Uniform Combined State Law Examination Practice Tests & Test Prep by Exam Edge

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Series 66 NASAA Uniform Combined State Law Examination Sample Test

1 of 5

The term “institution” includes all but which of the following?

Correct Answer:

employee benefit plans with assets of less than one million dollars
the term "institution" in the context of financial and legislative definitions typically encompasses entities that are large or significant enough to impact the economy or sectors within which they operate. these entities often possess significant assets, experience, or authority, which allows them to handle substantial resources and make influential decisions. common examples of institutions include banks, trust companies, insurance companies, savings and loan associations, and governmental agencies.

in the provided question, various entities are listed to determine which among them does not qualify as an "institution" according to a specified criterion. the list includes a trust company, a governmental agency, banks, and employee benefit plans with assets of less than one million dollars. according to the information given, the definition of an institution includes entities like employee benefit plans only if they possess assets of not less than one million dollars. this specific threshold implies that such plans must manage a minimum level of assets to be considered sophisticated enough to be categorized as institutions.

consequently, "employee benefit plans with assets of less than one million dollars" do not meet the threshold specified in the definition of institutions, which includes entities that generally manage larger asset bases. banks, trust companies, and governmental agencies inherently manage or oversee substantial assets or carry significant authority, categorizing them as institutions regardless of a specific asset threshold.

hence, the answer to the question "the term 'institution' includes all but which of the following?" is "employee benefit plans with assets of less than one million dollars." this is because such plans do not satisfy the asset requirement necessary to be deemed an institution, unlike the other entities listed, which inherently qualify as institutions due to their nature and the scale of their operations or assets.

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Series 66 NASAA Uniform Combined State Law Examination Aliases Test Name

Here is a list of alternative names used for this exam.

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