Series 50: Exercise

Exercise

Match the definition with the most appropriate term

1. A. Broker
2. B. Dealer
3. C. Bank dealer
4. D. Municipal securities dealer
5. E. Municipal advisor
6. 1. _____ Among other things, solicits municipal entities to invest in financial products
7. 2. _____ Defined by the 1934 Act; includes all broker-dealers and bank dealers that underwrite, trade, and sell municipal securities
8. 3. _____ Engages in securities transactions for the accounts of others
9. 4. _____ Engages in securities transactions for its own accounts
10. 5. _____ Must be under direct supervision of an officer appointed by the board of directors of bank

Choose the best response to each question

1. 6. Which of the following is not considered the activity of a bank dealer according to the MSRB?
2. A. Underwriting an issue of municipal securities
3. B. Providing investment advice regarding municipal securities
4. C. Consulting with an issuer about the issuance of municipal securities
5. D. Operating as an agent of 529 plans
6. 7. Which of the following would be required by the MSRB to register as a municipal advisor?
7. A. An entity that advises the municipality about its options for the investment of bond proceeds and is already registered as an investment adviser
8. B. A bank soliciting a municipality to enter a swap agreement
9. C. A bank that is underwriting a 529 plan
10. D. The mayor of a city that proposes a bond issuance
11. 8. Which of the following is a true statement?
12. A. If a municipal advisor and an underwriter give conflicting advice, the municipality must accept the recommendation of the municipal advisor.
13. B. Municipal advisors may, under certain circumstances, function as underwriters.
14. C. An underwriter for a municipal bond issuance may provide advice about the maturity of the bonds if the underwriter meets certain requirements.