Exam 30 Wrong Answers Flashcards
In opening an options account, all of the following must be completed except
Receiving a signed options agreement from the customer
Which of the following most closely expresses FINRA’s Five Percent Policy?
Markups/Markdowns and commissions should be fair under the circumstances and should probably not exceed 5%
Your customer buys one XYZ 160 put at 10 and shorts one XYZ 150 put at 3. Which two words describe this spread?
Debit
Bearish
With regard to a collect on delivery order, what is the proper procedure for the receiving firm should the funds not be available to pay for the securities at delivery?
The receiving firm must promptly return the securities to the selling firm
When considering an investment for an ERISA account, the primary consideration is
Potential risk
A mutual fund prospectus can no longer be used if financial information is older than
16 months
Which of the following is not a risk of Eurodollar bonds?
Exchange rate risk
The priority for acceptance of orders for an over-subscribed municipal bond offering will be established by the manager in the
Agreement among underwriters
A person transferring an IRA to another trustee via a trustee to trustee transfer
Will not be subject to any penalties or taxation
A client buys a BAT July 40 put. The client would profit if this spread position
Widens
If certain requirements are met, a corporation can offer securities sold within the borders of one state using the intrastate offering exemption, also known as
Rule 147
With a variable annuity, which of the following factors are not involved in determining the amount of an annuitant’s first annuity payment?
The number of annuity units
Which of the following applies to put option contracts?
The put holder has the right to sell at the strike price
A registered representative qualified to sell only municipal securities may solicit orders for which of the following?2
Sewer and water revenue bonds
General obligation bonds
All of the following are true statements regarding full arbitration hearings except
The maximum award is $50,000
