Series 51: Chapter 4 Practice Questions

Chapter 4 Practice Questions

1. 1. A dealer is not required to submit the normal political contribution disclosures to the MSRB if:
2. A. The dealer has only engaged in competitive underwriting during that quarter.
3. B. The dealer only made political contributions through its political action committee.
4. C. The majority of the dealer’s reportable contributions fall into the MFP de minimis exception.
5. D. The dealer has not engaged in municipal securities business for the last eight calendar quarters.
6. 2. A blind advertisement:
7. A. Is improper if it fails to provide disclosure statements
8. B. Must not constitute a call to invest in municipal fund securities
9. C. Provides generic explanatory information relating to municipal fund securities in general
10. D. Is improper if it provides issuer contact information
11. 3. Municipal securities business in the context of the “pay to play” rule includes:
12. A. Participating in a competitive underwriting
13. B. Purchasing municipal securities in a primary offering
14. C. Selling municipal securities in the secondary market
15. D. Providing financial advice for a primary offering after being selected in a competitive bid process
16. 4. Dealers are required to submit statements to the MSRB disclosing their political contributions:
17. A. Immediately after each contribution is made
18. B. Once every calendar year
19. C. Once every six months
20. D. Once every quarter
21. 5. If a municipal finance professional (MFP) entitled to vote for an elected official of an issuer makes a $250 contribution to the official’s election and later gives $250 for inauguration expenses, then:
22. A. The MFP’s firm would be prohibited from conducting municipal securities business with the issuer for two years.
23. B. The MFP’s firm would not be prohibited from conducting municipal securities business with the issuer becaus