SIE: Chapter 8 Practice Questions

Chapter 8 Practice Questions

1. 1. Within 30 days of opening a new account, a new account form must be sent to the customer. The new account form must include all of the following except:
2. A. Customer’s date of birth
3. B. Customer’s net worth
4. C. Customer’s educational background
5. D. Name of representative in charge of account
6. 2. William and Ruth share a joint tenants in common brokerage account. This account has all the following characteristics except:
7. A. The certificates of securities sold from the account must be signed by both parties.
8. B. The account can only be closed by both parties.
9. C. Both owners have equal rights to the account’s assets.
10. D. Either party can trade in the account without getting explicit written permission from the other party.
11. 3. Under a Uniform Transfers to Minors account, assets must be transferred to the minor no later than age:
12. A. 18
13. B. Depends on the state
14. C. 21
15. D. 30
16. 4. Once a prospective customer fills out a new account form, the broker-dealer must independently verify the identity of the customer. The requirements of the USA PATRIOT Act allow financial institutions to verify the identity of its individual or institutional customers by any of the following means except:
17. A. Examining a current passport
18. B. Examining a Social Security card
19. C. Examining a government-issued business license
20. D. Examining an alien registration card
21. 5. After learning of the death of a customer, a broker-dealer must:
22. A. Immediately freeze the customer’s assets
23. B. Write a letter testamentary to the customer’s estate
24. C. Cancel all open orders once a copy of the death certificate is received
25. D. Notify immediate family members
26. 6. A joint brokerage account owned by two unmarried persons, and in which the death of one of the owners causes his share of the assets to pass to his estate, is referred to as:
27. A. Tenancy by the entirety
28. B. Joint tenants