Chapter 5 Practice Questions
- 1. The opening of a customer account involving municipal securities must be reviewed and approved by:
- A. Only a municipal securities representative
- B. A municipal securities principal or a general securities principal
- C. A municipal securities sales principal, municipal securities principal, or general securities principal
- D. A municipal securities principal
- 2. 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
- 3. Which of the following must be promptly delivered to a customer when a 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
- 4. Dealers are required to maintain records of customer complaints for:
- A. Six years
- B. Three years
- C. Two years
- D. Four years
- 5. Which of the following is a true statement about opening customer accounts?
- A. Dealers must obtain the required customer information before conducting any work on 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. Suitability information must be provided to open the account.
- 6. All of the following statements about municipal securities accounts for customers employed by another broker-dealer are correct except:
- A. Such accounts are strictly prohibited unless they are limited to municipal fund securities.
- B. To open