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| Section | Weight | Objectives |
|---|---|---|
| Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions | 7% | - Trade execution and settlement
|
| Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Customer recommendations and transactions
|
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 9% | - Customer acquisition and prospecting
|
| Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives | 11% | - Customer accounts and documentation
|
1. Which of the following is not true about US treasury bills?
A) they are general obligations of the US government
B) they are issued in denominations of $1,000 to $1,000,000
C) they are money market instruments
D) they are issued at a discount
2. A front-end loan mutual fund plan is most suitable for:
A) an optional withdrawal plan
B) a voluntary accumulation plan
C) a contractualplan
D) an automatic withdrawal plan
3. Which of the following securities has the highest amount of market risk?
A) savings bank deposits
B) US treasury bills
C) US treasury certificates
D) US treasury notes
4. For an FINRA member firm to exercise discretionary power in any customer account requires written
authorization by that customer except when:
A) the customer has given an oral approval after the transaction
B) both B and C
C) only time and price of execution are involved
D) the customer is a spouse of the registered representative
5. In a 401(k) plan, when are employee's contributions of compensation deferral vested?
A) immediately
B) after 5 years
C) after 2 years
D) the same as the employer's contributions
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: A |
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