Chapter 3 Practice Questions
- 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:
- A. Six years
- B. Three years
- C. Two years
- D. Six months
- 2. The opening of a customer account involving municipal securities must be reviewed and approved of by:
- A. Only a municipal securities representative
- B. A municipal securities principal or general securities principal
- C. A municipal securities sales principal, municipal securities principal, or general securities principal
- D. A municipal securities principal
- 3. Suitability information refers to:
- A. Only information about a customer’s financial status
- B. Information necessary to open a suitable customer account
- C. Only information about a customer’s investment objectives
- D. Information necessary to be able to recommend suitable transactions to a particular customer
- 4. Which of the following must be promptly delivered to a customer when a municipal securities dealer receives a customer complaint?
- A. A duplicate copy of the customer confirmation
- B. An investor brochure
- C. A record of the customer complaint
- D. A record of any customer correspondence
- 5. Municipal securities dealers are required to maintain records of customer complaints for:
- A. Six years
- B. Three years
- C. Two years
- D. Four years
- 6. Which of the following is a true statement about opening customer accounts?
- A. Dealers must obtain all the required customer information before effecting any transactions in the account.
- B. More information must be obtained for institutional accounts than other customer accounts.
- C. A customer’s signature is not required on the new account form to open the account.
- D. Suit