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Free Practice Questions for Type 2 Securities Sales Representative Examination

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Exam pass rate: 68.1% for general examinees in FY2025 (2,557 of 3,753). 64.5% in FY2024 (2,751 of 4,268).
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Key Facts: Type 2 Securities Sales Representative Examination Exam

12,169 JPY

General Prometric fee including tax

Prometric Japan 外務員資格試験

70 items / 120 min

Official Type 2 length and time

JSDA 外務員資格試験

70% (210/300)

Passing score

JSDA 外務員資格試験

68.1%

FY2025 general-examinee pass rate (2,557 / 3,753)

JSDA 外務員資格試験 (一般受験者)

Spot job scope

Cash products after registration; basic margin/derivatives still tested

JSDA 外務員 / 外務員資格試験

JSDA Type 2 CBT: 120 minutes, 70 items, 300 points, 70% (210) to pass, 12,169 JPY tax included for the general Prometric sitting. Cash/spot job scope; basic margin and derivatives still appear on the paper. This bank is independent English MCQ study.

Sample Type 2 Securities Sales Representative Examination Practice Questions

Try these sample questions to review concepts for the Type 2 Securities Sales Representative Examination exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Article 1 of the Financial Instruments and Exchange Act (FIEA / 金融商品取引法), what is the statutory purpose of the Act?
A.To ensure fairness in the issuance and trading of financial instruments, protect investors, and contribute to the sound development of the national economy
B.To guarantee that all retail investors achieve a minimum annual capital return of 5% on domestic investments
C.To eliminate all private commercial banks and centralize lending exclusively in the Ministry of Finance
D.To prohibit individual citizens from investing in listed corporate equities
Explanation: FIEA Article 1 specifies that the purpose of the Act is to ensure public interest and fairness in the issuance and trading of financial instruments, achieve proper price formation, protect investors, and contribute to the smooth functioning of capital finance and the sound development of the national economy.
2What is the permissible scope of sales and solicitation activities authorized for a registered Type 2 Securities Sales Representative (二種外務員) in Japan?
A.Solicitation and sales of cash/spot financial instruments such as listed shares, public and corporate bonds, and investment trusts, strictly excluding margin trading and derivatives
B.Solicitation of all financial products including futures, options, and margin trading
C.Trading restricted exclusively to unlisted real estate development partnerships
D.Providing discretionary asset management without executing any client orders
Explanation: Under JSDA registration rules, a Type 2 Sales Representative (二種外務員) is authorized to handle cash and spot securities transactions (stocks, bonds, investment trusts, REITs). Leveraged products—specifically margin transactions (信用取引) and financial derivatives (先物・オプション・店頭デリバティブ)—are strictly outside Type 2 authority and require Type 1 qualification.
3Which of the following is defined as a Paragraph 1 Security (第1項有価証券) under Article 2, Paragraph 1 of the Financial Instruments and Exchange Act?
A.Corporate bond certificates (社債券) issued by a joint-stock company
B.Rights in a silent partnership (匿名組合出資配当等請求権)
C.Membership rights in a limited liability company (合同会社社員権)
D.Beneficiary rights in a trust that are not represented by securities certificates
Explanation: Article 2, Paragraph 1 of the FIEA enumerates traditional, highly liquid capital market instruments—such as government bonds, municipal bonds, corporate bonds (社債券), share certificates, and commercial paper—as Paragraph 1 Securities. Rights in partnerships and uncertificated trusts are deemed securities under Paragraph 2 (第2項有価証券).
4Under the Financial Instruments and Exchange Act, what regulatory approval is required to engage in Financial Instruments Business (金融商品取引業) in Japan?
A.Registration with the Prime Minister (delegated to the Commissioner of the Financial Services Agency / Director-General of the Local Finance Bureau)
B.A commercial business license issued by the local municipal city ward office
C.An informal recommendation letter from a commercial chamber of commerce
D.Unanimous approval from the Tokyo Stock Exchange Board of Directors
Explanation: Under FIEA Article 29, any entity intending to engage in Financial Instruments Business must undergo statutory registration with the Prime Minister. This administrative authority is delegated to the Financial Services Agency (FSA) and Local Finance Bureaus (財務局).
5What is the primary mandate of the Principle of Suitability (適合性の原則) under FIEA Article 40?
A.A financial firm must not solicit an investor if the transaction is inappropriate given the customer's knowledge, experience, asset status, and investment purpose
B.A securities firm must ensure that every retail client makes identical investment selections regardless of age
C.A firm must guarantee that all investment portfolios achieve equal quarterly capital gains
D.A sales representative must only sell securities to individuals who hold a university degree in finance
Explanation: Under FIEA Article 40, the suitability principle prohibits financial business operators from soliciting customers in a manner that is unsuitable considering the customer's investment experience, financial assets, knowledge, and investment objective, ensuring retail investors are not guided into inappropriate risks.
6Since the 2023 amendment took effect on 1 April 2025, Article 37-3 of the Financial Instruments and Exchange Act is headed 契約締結前の情報の提供等. When and how must a Financial Instruments Business Operator give a retail customer the statutory pre-contract information?
A.In advance of concluding the contract, by delivering a document or by an approved electronic method
B.Within 14 business days after the transaction has been executed
C.Only if the customer asks for it in writing after trading has begun
D.Once a year, together with the annual withholding statement
Explanation: Article 37-3(1) requires the operator to provide the prescribed pre-contract matters — the outline of the transaction, fees, the risk that principal may be lost, and the operator profile — before the contract is concluded. The 2023 amendment replaced the former paper-first 契約締結前交付書面 duty, so the information may now be given either as a document or by an approved electronic method, with the customer keeping the right to request a paper document.
7What document must be delivered without delay to a customer upon the execution of a securities trade under FIEA Article 37-4?
A.Document Upon Conclusion of Contract (契約締結時交付書面 / 取引報告書 / Trade Confirmation Report)
B.A certified copy of the securities company's articles of incorporation
C.The individual sales representative's tax return
D.A statutory letter of guarantee from the Bank of Japan
Explanation: Under FIEA Article 37-4, when a contract is concluded or a transaction executed, the securities firm must deliver the Document Upon Conclusion of Contract (commonly known as the Trade Confirmation / 取引報告書) without delay, detailing the execution price, quantity, date, and commission fees.
8Under Article 39 of the Financial Instruments and Exchange Act, which of the following acts is strictly illegal?
A.Compensating a customer for losses incurred in securities transactions or promising in advance to guarantee principal or profits
B.Executing a purchase of government bonds at the prevailing market auction yield
C.Deducting standard statutory brokerage commissions disclosed in the contract tariff
D.Refusing to execute an order if the customer cannot be identified under anti-money laundering rules
Explanation: FIEA Article 39 strictly prohibits loss compensation (損失補填) and promises of profit guarantees (事前利益保証). A financial operator cannot promise to bear all or part of a customer's losses, nor can it provide property or financial benefits to compensate for losses after they occur.
9Which of the following statements made by a sales representative during a sales call violates the prohibition of providing assertive predictions (断定的判断の提供の禁止) under FIEA Article 38?
A.'This stock is guaranteed to rise by at least 30% over the next two months because a new patent will definitely be approved'
B.'Over the past five years, this investment trust has paid an average annual distribution yield of 3.5%, though past performance does not guarantee future results'
C.'Japanese Government Bonds carry sovereign credit risk backed by the Government of Japan, but prices fluctuate with market interest rates'
D.'Stock prices can fluctuate due to corporate earnings results and macroeconomic conditions, which may lead to loss of principal'
Explanation: Asserting that an uncertain future event is certain or guaranteeing that a stock price will definitely rise constitutes the prohibited provision of assertive predictions (断定的判断の提供) under FIEA Article 38, Item 2.
10Under the FIEA investor classification rules, what is the regulatory distinction between Professional Investors (特定投資家) and General Investors (一般投資家)?
A.Professional investors are deemed to possess sufficient financial knowledge and are exempt from certain statutory conduct rules, such as the mandatory provision of pre-contract information
B.Professional investors pay zero commissions, while general investors pay a mandatory 50% state surcharge
C.General investors are prohibited from buying any domestic common stocks
D.Professional investors are personally insured against market losses by the Bank of Japan
Explanation: The FIEA establishes a flexibility framework: Professional Investors (institutional entities and qualifying high-net-worth individuals) are presumed to understand market risks and are exempt under Article 45 from specific sales conduct rules — including the Article 37-3 pre-contract information duty and the statutory advertising rules — whereas General Investors receive the full statutory protections.

About the Type 2 Securities Sales Representative Examination Exam

The Type 2 Securities Sales Representative Examination (二種外務員資格試験) is JSDA's foundational sales-representative qualification under the Financial Instruments and Exchange Act. After registration through an Association Member, Class-2 representatives may solicit cash/spot securities (equities, bonds, investment trusts) but not margin trading or derivatives. JSDA still tests basic knowledge of those excluded products on the Type 2 paper. The official CBT is 120 minutes, 70 items (50 true/false and 20 five-choice) for 300 points, with a 70% (210-point) pass. The general Prometric fee is 12,169 JPY including tax. OpenExamPrep publishes independent English four-option MCQs for the named topics. It is not an official translation, not a true/false or five-choice simulation, and not a substitute for the Japanese (or member-firm English) CBT.

Exam sponsor: Japan Securities Dealers Association (JSDA / 日本証券業協会). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

CBT delivered by Prometric for JSDA. General sittings run on weekdays excluding public holidays and the year-end/New Year close. Type 2 covers Sales Representatives Manual volumes 1–3. JSDA still includes basic knowledge of margin trading and derivatives inside equity/bond and related subjects, even though Type 2 job scope excludes those products.

Time Limit

120 minutes (2 hours)

Passing Score

70% (210 out of 300 points)

Exam / Certification Fees

12,169 JPY including tax (general Prometric sitting)

Exam sponsor website

Reported exam pass rate: 68.1% for general examinees in FY2025 (2,557 of 3,753). 64.5% in FY2024 (2,751 of 4,268).. This describes exam candidates, not OpenExamPrep users or results from using our resources. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

25% of this local practice set

法令・諸規則 (Laws & Regulations)

FIEA, solicitation statutes, JSDA rules, and exchange rules, including suitability and prohibited acts.

40% of this local practice set

商品業務 (Product Business)

Cash equities, bonds, investment trusts and J-REITs, incidental services, and the basic margin/derivatives knowledge JSDA places in these subjects for Type 2.

35% of this local practice set

関連科目 (Related Subjects)

Market structure, Companies Act outline, macroeconomics, financial-statement analysis, and securities taxation including NISA.

Preparing for the Type 2 Securities Sales Representative Examination Exam

What You Need to Know

  • Passing score: 70% (210 out of 300 points)
  • Assessment: CBT delivered by Prometric for JSDA. General sittings run on weekdays excluding public holidays and the year-end/New Year close. Type 2 covers Sales Representatives Manual volumes 1–3. JSDA still includes basic knowledge of margin trading and derivatives inside equity/bond and related subjects, even though Type 2 job scope excludes those products.
  • Time limit: 120 minutes (2 hours)
  • Exam / certification fees: 12,169 JPY including tax (general Prometric sitting) Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

Type 2 Securities Sales Representative Examination: Suggested Study Strategy

1Cover 外務員必携 volumes 1–3; Volume 4 derivatives is Type 1 only, but Type 2 still asks basic margin and derivatives inside equity/bond subjects.
2Drill bond-yield formulas used on Japanese papers: 単利最終利回り, 直接利回り, and 応募者利回り.
3Separate ordinary fund dividends (普通分配金) from return-of-capital distributions (元本払戻金 / 特別分配金).
4Memorize listed-share tax at 20.315% and the 2024 NISA quotas (つみたて 1.2 million JPY, 成長 2.4 million JPY, lifetime 18 million JPY).
5Practice Japanese 〇✕ and five-choice style separately; this English MCQ set is study material only.

Frequently Asked Questions

What products can a Type 2 sales representative solicit?

After registration, Type 2 covers cash/spot instruments such as stocks, bonds, and investment trusts. JSDA states Type 2 may not perform margin-trading or derivatives duties. The Type 2 exam still includes basic knowledge of those excluded products inside equity, bond, and related subjects.

Who administers the exam and where is it taken?

JSDA administers the qualification. Association Member staff apply through their firm. The general public books Prometric CBT in Japan. Prometric's general sitting runs year-round on weekdays excluding holidays and the year-end/New Year close.

What is the official format, time limit, and passing score?

Type 2: 70 items in 120 minutes — 50 true/false (2 points) and 20 five-choice (10 points) for 300 points. Pass is 70% (210 points).

What is the 2026 general-public exam fee?

Prometric lists 12,169 JPY including tax for 二種外務員資格試験（一般）. Prometric states paid general reservations cannot be cancelled or refunded.

What language is the official exam in?

The general-public CBT is Japanese. JSDA provides an English CBT only for Association Member employees (Tokyo 23-ward sites; Japanese text can be toggled on screen). This OpenExamPrep bank is an independent English-language MCQ study adaptation, not an official translation.

Can I sit Type 1 later without holding Type 2?

Yes. JSDA FAQ states you may sit Type 1 without Type 2. Many candidates still start with Type 2 and later sit Type 1 to expand product authority.

Are OpenExamPrep questions official items?

No. Official items are Japanese (or member-firm English) true/false and five-choice CBT questions from Manual volumes 1–3. These are independent four-option study questions.