Series 28: Chapter 5 Practice Questions

Chapter 5 Practice Questions

1. 1. A registered person who has already completed the regulatory element once must thereafter complete the continuing education regulatory element:
2. A. Every year
3. B. Every three years
4. C. As needed, determined by the person’s supervisor
5. D. As directed by the firm’s chief operating officer
6. 2. For purposes of the taping rule, the term “disciplined firm” means a firm that has:
7. A. Received more than 15 customer complaints in the past year
8. B. Received an unsatisfactory audit from FINRA in the past year
9. C. Been expelled from FINRA as a member
10. D. Been fined by the SEC within the past three years
11. 3. All of the following activities require an Office of Supervisory Jurisdiction except:
12. A. Accepting new customer accounts
13. B. Receiving customer orders
14. C. Maintaining custody of customer securities
15. D. Executing customer orders
16. 4. Which of the following would be acceptable to give to a customer under the FINRA rules on gifts and gratuities?
17. A. A $200 ticket to Cirque du Soleil, with which you accompany the person to the show
18. B. Two $75 dollar tickets to a concert that you will not attend
19. C. A $125 holiday box of chocolates sent by a representative
20. D. A $150 stroller gift that the firm pays for
21. 5. Assuming an agent’s broker-dealer has written procedures allowing certain types of borrowing and lending, agents may borrow funds from or loan funds to clients under which of the following conditions?
22. I. The lending or borrowing is with a member of the agent’s immediate family.
23. II. The client is a financial institution regularly engaged in the business of providing credit, financing, or loans.
24. III. The lending arrangement is based on a business relationship outside of the broker-customer relationship.
25. A. I and III
26. B. II and III
27. C. II and III
28. D. I, II, and III
29. 6. Where an executing member firm knowingly opens an account for a person as