Exam 9 Wrong Answers

Question 1

Your cash account is restricted and frozen due to Reg T violation. Which is true?

Answer 1

A transaction can be completed as long as there is cash in the account

Question 2

A rate covenant is associated with which of the following?

Answer 2

Revenue bond

Question 3

In order to avoid paying taxes at the trust or corporate level, a REIT must distribute a certain amount of its income in the form of dividends. What is this percentage?

Answer 3

90%

Question 4

In a firm commitment underwriting, who takes responsibility for unsold shares?

Answer 4

The syndicate

Question 5

Which of the following is not a characteristic of ETNs?

Answer 5

Limited principal protection

Question 6

Registered persons on active duty in the US military who are placed on inactive status with FINRA

Answer 6

May earn commissions

Question 7

What is the collateral for a collateral trust certificate?

Answer 7

Securities from a different issuer

Question 8

Judy continued issuing trade instructions and making account withdrawals immediately after her husband died. Their account was a

Answer 8

JTWROS

Question 9

An agent may use all of the following with a client to compare different mutual funds except

Answer 9

The amount of the client’s likely investment

Question 10

For transactions of $10,000 or more, a broker/dealer is required to file a Currency Transaction Report (CTR) with the

Answer 10

Financial Crimes Enforcement Network

Question 11

What is the penalty for excessive contributions to an IRA?

Answer 11

6%

Question 12

Which of the following is not a reason for a corporation to buy back its stock in the secondary market?

Answer 12

To reduce interest charges

Question 13

A FINRA member that is required to join SIPC is also required to

Answer 13

Purchase a blanket fidelity bond

Question 14

Which of these statements is incorrect concerning broker/dealers?

Answer 14

A firm can act in both the capacity of a broker and a dealer when selling securities from its own inventory

Question 15

Which of the following securities is not redeemable?

Answer 15

Common stocks

Question 16

The number of authorized shares can only be changed by which of the following?

Answer 16

The majority approval of the shareholders

Question 17

A consumer wants to opt out of allowing the broker/dealer to share non public personal information with non affiliated third parties. All of the following would be considered reasonable ways to do this except

Answer 17

Writing a letter to the broker/dealer

Question 18

Which of the following is true regarding ABLE accounts?

Answer 18

Savings from a 529 education account may be rolled into an Able account

Question 19

Which FINRA by-law sets guidelines for how broker/dealers conduct business with each other?

Answer 19

Uniform Practice Code

Question 20

All of the following are true of REITs except

Answer 20

REITs are investment companies

Question 21

An issuer files an S-1. This initiates the

Answer 21

Cooling-off period