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