Series 50: Chapter 1 Practice Questions

Chapter 1 Practice Questions

1. 1. Which of the following are true?
2. I. Municipal advisors may, under certain circumstances, act as underwriters.
3. II. Underwriters may, under certain circumstances, act as municipal advisors.
4. III. Municipal advisors may never act as underwriters.
5. IV. Underwriters may never act as municipal advisors.
6. A. I and IV
7. B. II and III
8. C. I and II
9. D. III and IV
10. 2. Which of the following is true of the MSRB?
11. A. The MSRB creates rules that govern issuers of securities.
12. B. The MSRB is composed of 20 members who are knowledgeable about municipal securities.
13. C. The MSRB does not have the power to enforce its own regulations.
14. D. The MSRB was created by the Securities Exchange Act of 1934.
15. 3. Which of the following would most likely not be considered a municipal advisor?
16. A. A financial advisor who recommends that a municipality proceed with an interest rate swap
17. B. A financial advisor who suggests the municipality issue a serial bond instead of a term bond
18. C. An investment adviser that solicits a municipality to issue a bond in order to invest the proceeds in a prime investment
19. D. An investment adviser that encourages the municipality to invest its bond proceeds in a variety of ways
20. 4. Which of the following does a municipal securities broker-dealer have to pay to the MSRB?
21. I. $500 initial registration fee
22. II. $1,000 initial registration fee
23. III. $500 annual registration fee
24. IV. $1,000 annual registration fee
25. A. II and IV
26. B. I and III
27. C. I and IV
28. D. II and III
29. 5. Which of the following is true of MSRB registration?
30. A. The annual fee must be paid by September 30.
31. B. The information on Form A-12 must be affirmed within 14 days of the end of the calendar year.
32. C. Form A-12 must be updated within 10 days of any information becoming inaccurate.
33. D. Failure to pay the annual fee may result in a $25 monthly late fee.
34. 6. Which