Series 50: Exercise

Exercise

Choose the best response to each question

1. 1. What is yield burning?
2. A. When a municipality finds ways to spend investment proceeds that are in excess of yield restrictions
3. B. Raising the yield on a municipal bond so that the proceeds can be invested at a higher rate
4. C. When a securities dealer marks up the price of an open market security in order to lower its yield
5. D. When a securities dealer marks down the price of an open market security in order to raise its yield
6. 2. Under which of the following circumstances would an investment adviser be required to register as a municipal advisor?
7. A. The investment adviser gives advice to a municipality about how to invest its bond proceeds.
8. B. The investment adviser gives advice to a municipality about how to invest its escrow proceeds.
9. C. The investment adviser recommends a specific portfolio in which a municipality can invest.
10. D. The investment adviser gives advice about the maturity of a bond the municipality plans to issue.
11. 3. Which of the following are kinds of SLGS?
12. I. Time deposit
13. II. Reserve deposit
14. III. Interest deposit
15. IV. Demand deposit
16. A. II and III
17. B. I and IV
18. C. II and IV
19. D. III and IV

Answers

1. 1. C. Yield burning occurs when a