Series 51: Chapter 1 Practice Questions

Chapter 1 Practice Questions

1. 1. For SIPC coverage purposes, which of the following people would have their multiple accounts combined?
2. A. Joe, who has an individual account and a joint account with his wife
3. B. Jane, who has a cash account and a margin account in her name
4. C. Jack, who has an UGMA account for his daughter, a trust account for his son, and an individual account
5. D. Joan, who has a partnership account for her business, an individual account, and an UTMA account for her niece
6. 2. Which agencies enforce MSRB rules for broker-dealers?
7. A. FDIC and FINRA
8. B. SEC and FINRA
9. C. Federal Reserve Board and MSRB
10. D. SEC and MSRB
11. 3. SIPC provides limited insurance for the assets contained in investors’ accounts. What are the SIPC coverage limits?
12. A. Up to $500,000 per separate customer, including up to $100,000 in cash
13. B. Up to $250,000 per separate customer, including up to $250,000 in cash
14. C. Up to $250,000 per separate customer, including up to $100,000 in cash
15. D. Up to $500,000 per separate customer, including up to $250,000 in cash
16. 4. If a broker-dealer is not covered by SIPC, it must:
17. A. Disclose the lack of coverage on the customer’s trade confirmation statement
18. B. Obtain written consent from the customer to proceed without SIPC coverage
19. C. Display an official sign in its offices
20. D. Disclose the lack of coverage only if asked by a custome