test 1

Question 1

f the clearing agent is not itself subject to the MSRB’s recordkeeping rules, the nonclearing firm must see to it that the

Answer 1

records are kept in compliance with the rules.
In general, a nonclearing municipal securities broker or dealer is not subject to the MSRB’s recordkeeping rules. The clearing broker or dealer must keep records, and the nonclearing firm need not duplicate the clearing firm’s work.

Question 2

Who is not considered to be an associated person

Answer 2

An employee whose job is strictly clerical at a municipal broker/dealer or dealer bank is not considered to be an associated person.

Question 3

The term “order period” refers to

Answer 3

he period of time announced by a syndicate during which orders will be solicited for the purchase of securities held in the syndicate.

Question 4

angency trade shows compensations as

Answer 4

a flat amount. in a dual agency it would show the charge on the confirm to each buyer and seller.

Question 5

ccording to MSRB rules, a separately identifiable department of a bank must have all of the following characteristics

Answer 5

that it is part of the bank.

that it conducts all of the bank’s municipal securities transactions.

that it is subject to federal banking laws.

Question 6

submitting form Form G-32 for advance refunding

Answer 6

elating to the advance refunding document and as required in the EMMA Dataport Manual, by no later than five business days after the closing date. A Form G-32 must be submitted when CUSIP numbers are obtained for any EMMA-reporting issue, including advance refundings.

Question 7

disclosure for allotments to a syndicate participant account are for

Answer 7

related portfolios
municipal unit investment trusts
accumulation accounts
the dealer’s own account.

Question 8

Municipal securities Dealer X receives an inquiry from Dealer Y seeking to verify the accuracy of the employment information
how many days

Answer 8

10 days

Question 9

f a contract is to be closed out due to a buy-in, written notice shall be delivered to the seller at his office not later than

Answer 9

)

1 business day preceding the execution of the proposed buy-in.

Question 10

Form G-32 contains

Answer 10

the issuer's name
the total amount of the issue, 
 CUSIP 
underwriting arrangement 
and any other information about the issue need not be provided to the MSRB

Question 11

Agency transaction

records that need kept

Answer 11

the order ticket (together with any accompanying instructions) must be retained. The date and the time the order was received and executed must also be recorded.

Question 12

LGIP

NAV

Answer 12

can be stable or variable depending on the pool type

Question 13

A financial adviser who purchases a new issue of municipal bonds, whether on a competitive or negotiated sale basis, must disclose to customers the existence of an advisory relationship

Answer 13

on the confirmation or in the official statement.

Question 14

A municipal syndicate must pay the MSRB underwriting assessment within how many days of invoice date

Answer 14

30

Question 15

Under MSRB rules, the first retransmittal extends the dates for closeout by:

Answer 15

5 BUSINESS DAYS

Subsequent transmittals do not extend the new buy-in date.

Question 16

current yield
taxable equivalent yield
and confirmations

Answer 16

never shown on a confirm

Question 17

g32 info

Answer 17

Issuer
description of the securities
Par value of the securities on which the underwriting assessment is based
maturities
name of the syndicate manager
CUSIP numbers
Reoffering yield

Question 18

Yield and miscellaneous fees

On Confirm

Answer 18

miscellaneous fees are on the confirm but unlike commission is not used in calculating yied.

Question 19

interest claime payment

Answer 19

10 days

Question 20

final syndicate statement

Answer 20

30 days of date all securities are delivered by manager to syndicate

Question 21

past employment u4 # of years

Answer 21

10

Question 22

When don’t text messages need monitored

Answer 22

Text messaging and chat services that are only occasionally used for inconsequential business purposes such as confirmations of appointments are not required to be maintained.

Question 23

BD HAS a financial advisory relationship for compensation

Can they participate in an offering distribution

Answer 23

No broker/dealer may acquire as principal either alone or as a syndicate member any portion of an issue of bonds.

Question 24

mutilated coupon reclamation

Answer 24

1 day

Question 25

When effecting transactions on a public customer’s behalf, a municipal bond broker or dealer is obligated to:

Answer 25

use best judgment as to a fair market value.

Question 26

Agency trade reporting

Answer 26

Amendments to Rule G-14 require that both dealers in a transaction report their capacity in the trade, either agency or principal.

Question 27

If at the time of a trade it is NOT specified that the bonds delivered were called, reclamation must be made:

Answer 27

any time, with no time limit.

Question 28

confirmations

discretionary vs. unsolicited

Answer 28

not on confirm on trade ticket

Question 29

A dealer bank has been providing research and financial advice to a municipality concerning a new issue of bonds. The commercial side of the bank may use the information obtained through this fiduciary capacity:

Answer 29

once the information has become public.

Question 30

benefits and day to day operations of a bank

Answer 30

The statement of policy and employee benefits is not part of day-to-day operations of the municipal dealer.