Series 53: Chapter 3 Practice Questions

Chapter 3 Practice Questions

1. 1. John is a representative who works for a bank dealer. Records of John’s correspondence with the public pertaining to municipal securities activities must be maintained for:
2. A. Six years
3. B. Three years
4. C. Two years
5. D. Six months
6. 2. The opening of a customer account involving municipal securities must be reviewed and approved of by:
7. A. Only a municipal securities representative
8. B. A municipal securities principal or general securities principal
9. C. A municipal securities sales principal, municipal securities principal, or general securities principal
10. D. A municipal securities principal
11. 3. Suitability information refers to:
12. A. Only information about a customer’s financial status
13. B. Information necessary to open a suitable customer account
14. C. Only information about a customer’s investment objectives
15. D. Information necessary to be able to recommend suitable transactions to a particular customer
16. 4. Which of the following must be promptly delivered to a customer when a municipal securities dealer receives a customer complaint?
17. A. A duplicate copy of the customer confirmation
18. B. An investor brochure
19. C. A record of the customer complaint
20. D. A record of any customer correspondence
21. 5. Municipal securities dealers are required to maintain records of customer complaints for:
22. A. Six years
23. B. Three years
24. C. Two years
25. D. Four years
26. 6. Which of the following is a true statement about opening customer accounts?
27. A. Dealers must obtain all the required customer information before effecting any transactions in the account.
28. B. More information must be obtained for institutional accounts than other customer accounts.
29. C. A customer’s signature is not required on the new account form to open the account.
30. D. Suit