Chapter 3 Practice Questions
- 1. A person must be registered as a municipal securities representative to engage in all of the following except?
- A. Communicating with public investors in municipal securities
- B. Underwriting municipal securities
- C. Providing investment advice about municipal securities
- D. Selling municipal bond funds
- 2. Which of the following statements about municipal securities dealer supervision (MSRB Rule G-27) is incorrect?
- A. Broker-dealers are obligated to ensure that their firms and all employees comply with applicable rules and laws.
- B. Broker-dealers must conduct a review of their municipal securities activities once every two years to ensure compliance with MSRB and SEC rules.
- C. Broker-dealers must designate appropriate principals to enforce supervisory controls.
- D. Broker-dealers must establish and maintain written compliance procedures as a guide for employee behavior.
- 3. Which of the following would be least likely to trigger the requirement to update written supervisory procedures under MSRB Rule G-27?
- A. Changes to MSRB disclosure requirements
- B. The addition of 529 college savings plans to a broker-dealer’s product line
- C. Changes in personnel at a firm
- D. The addition of dealer services where a firm had previously only acted as a broker
- 4. Which of the following statements about principal requirements is true?
- A. All municipal securities firms, including bank dealers, must have at least one FINOP.
- B. There are no exceptions to the rule that all municipal securities broker-dealers have at least two municipal securities principals.
- C. If a firm’s activities are limited to municipal fund securities, a municipal fund securities limited principal may be counted as a municipal securities principal.
- D. A broker-dealer with fewer than eleven full-time employees engaged in the