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. Each year a municipal broker-dealer must deliver a statement to its customers advising of the availability of an investor brochure on MSRB’s website. An investor brochure describes:
- A. How to file a customer complaint
- B. The risks in a wide-range of investment products
- C. Broker-dealer advertising restrictions
- D. How to access official disclosure documents
- 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 such an account