Series 53: Chapter 1 Practice Questions

Chapter 1 Practice Questions

1. 1. For SIPC coverage purposes, which of the following people would have their multiple accounts combined?
2. A. Joe, who has an individual account and a joint account with his wife
3. B. Jane, who has a cash account and a margin account in her name
4. C. Jack, who has an UGMA account for his daughter, a trust account for his son, and an individual account
5. D. Joan, who has a partnership account for her business, an individual account, and an UTMA account for her niece
6. 2. The anti-fraud provisions of the Securities Acts apply to:
7. A. Only registered securities
8. B. Only municipal securities sold in the secondary market
9. C. Only initial offerings of securities
10. D. Both registered and municipal securities
11. 3. Which agencies enforce MSRB rules for broker-dealers?
12. A. FDIC and FINRA
13. B. SEC and FINRA
14. C. Federal Reserve Board and MSRB
15. D. SEC and MSRB
16. 4. Which of the following is a true statement about MSRB rulemaking?
17. A. MSRB rules regulate only the secondary market for municipal securities.
18. B. MSRB rules are guidelines that do not have the force and effect of federal law.
19. C. MSRB rules become effective after public comment and SEC approval.
20. D. MSRB rules do not include fair practice rules.
21. 5. SIPC provides limited insurance for the assets contained in investors’ accounts. What are SIPC coverage limits?
22. A. Up to $500,000 per separate customer, including up to $100,000 in cash
23. B. Up to $250,000 per separate customer, including up to $250,000 in cash
24. C. Up to $250,000 per separate customer, including up to $100,000 in cash
25. D. Up to $500,000 per separate customer, including up to $250,000 in cash
26. 6. All of the following statements about municipal fund regulations are correct except:
27. A. Municipal fund securities are subject to the anti-fraud prov