Series 82: Chapter 2 Practice Questions

Chapter 2 Practice Questions

1. 1. Which of the following are types of trading authorization?
2. I. Limited
3. II. Restricted
4. III. Classified
5. IV. Full
6. A. I and II
7. B. I and IV
8. C. II and III
9. D. II and IV
10. 2. A broker may effect transactions with discretionary authority:
11. A. When customers are on vacation out of the country
12. B. When customers’ assets are underperforming
13. C. When permission is given prior to each transaction
14. D. Upon receipt of customers’ signed written permission
15. 3. Jack is about to enter the federal witness protection program, and he wants to have Rosalie, a trusted friend, take care of everything in his life while Jack “disappears” into the program. Which power of attorney would be most appropriate?
16. A. General
17. B. Limited
18. C. Financial
19. D. Unlimited
20. 4. All of the following activities require an Office of Supervisory Jurisdiction except:
21. A. Accepting new customer accounts
22. B. Receiving customer orders
23. C. Maintaining custody of customer securities
24. D. Executing customer orders
25. 5. A branch office that doesn’t supervise any non-branch office must be inspected once every:
26. A. Year
27. B. Two years
28. C. Three years
29. D. Six years
30. 6. West Memphis Investments has just implemented a new compliance program in accordance with FINRA rules. The company must keep retail communications and institutional communications for not less than _____ from last use.
31. A. One year
32. B. Two years
33. C. Three years
34. D. Four years
35. 7. Regulation S-P helps protects customers from:
36. A. Recommendations that are overly risky, such as inverse ETFs
37. B. Abusive commissions and sales charges
38. C. Having their private information misused
39. D. Money laundering
40. 8. A dura