Series 53: Chapter 5 Practice Questions

Chapter 5 Practice Questions

1. 1. The MSRB charges a transaction fee on municipal transactions. Assuming an inter-dealer transaction, who pays the transaction fee?
2. A. Each broker-dealer must pay .001%, or $.01 on every $1,000 of par value
3. B. The seller only must pay .001%, or $.01 on every $1,000 of par value
4. C. Each broker-dealer must pay .003%, or $.03 on every $1,000 of par value
5. D. The seller only must pay .003%, or $.03 on every $1,000 of par value
6. 2. The MSRB charges a technology fee on municipal transactions. Assuming an inter-dealer transaction, who pays the technology fee and how much is it?
7. A. Each broker-dealer must pay .001%, or $.01 on every $1,000 of par value
8. B. The seller only must pay .001%, or $.01 on every $1,000 of par value
9. C. Each broker-dealer must pay $1.00 on each transaction
10. D. The seller only must pay $1.00 on each transaction
11. 3. A customer buys 150 municipal bonds with a par value of $1,000 each from a municipal securities dealer. The MSRB charges a transaction fee on municipal transactions. Who will pay this fee and how much will it be?
12. A. Both the customer and the dealer will each pay $1.00 on the transaction
13. B. The dealer only will pay $1.00 on the transaction
14. C. Both the customer and the dealer will each pay $1.50 on the transaction
15. D. The dealer only will pay $1.50 on the transaction
16. 4. A customer buys 200 municipal bonds with a par value of $1,000 each from a municipal securities dealer. The MSRB charges a technology fee on municipal transactions. Who will pay this fee and how much will it be?
17. A. Both the customer and the dealer will each pay $1.00 on the transaction
18. B. The dealer only will pay $1.00 on the transaction
19. C. Both the customer and the dealer will each pay $2.00 on the transaction
20. D. The dealer only will pay $2.00 on the transaction
21. 5. A customer buys 1