Chapter 3 - Business Practices

Question 1

Determine which actions are ethical versus fraudulent

Answer 1

T

Question 2

Recognize the importance of determining customer suitability

Answer 2

F

Question 3

Identify prohibited practices

Answer 3

F

Question 4

Recall different types of accounts and their requirements

Answer 4

C

Question 5

Provide the rules pertaining to compensation and fees

Answer 5

C

Question 6

Determine potential conflicts of interest that must be disclosed

Answer 6

C

Question 7

Recall the rules regarding trading practices

Answer 7

C

Question 8

Define the forms of market manipulation

Answer 8

G

Question 9

Explain the rules for proper handling of customer rules and securities

Answer 9

D

Question 10

Discuss insider trading

Answer 10

C

Question 11

Identify the agent responsibility regarding selling away, outside securities accounts, and outside business activities

Answer 11

B

Question 12

Recall the supervisory requirements

Answer 12

B

Question 13

Explain the rules pertaining to having custody of funds and securities

Answer 13

C

Question 14

Discuss the proper handling of transactions for advisory clients

Answer 14

H

Question 15

Identify the customer communication standards including Internet communications

Answer 15

H

Question 16

Discuss cyber security threats

Answer 16

H

Question 17

Recognize the requirements of federal regulations including regulation S-P, regulation S-ID, and the customer identification program (CIP)

Answer 17

B

Question 18

Explain the dangers of social media accounts and how they are handled under regulations as well as advertisement requirements

Answer 18

Hey