Series 52: Chapter 8 Practice Questions

Chapter 8 Practice Questions

1. 1. A registered Municipal Securities Representative may engage in all of the following activities except:
2. A. Communicating with public investors in municipal securities
3. B. Underwriting municipal securities
4. C. Providing investment advice about municipal securities
5. D. Trading municipal bond funds
6. 2. Which of the following statements about principal requirements is true?
7. A. All municipal securities firms, including bank dealers, must have at least one FINOP.
8. B. There are no exceptions to the rule that all municipal securities broker-dealers have at least two Municipal Securities Principals.
9. C. If a firm’s activities are limited to municipal fund securities, a Municipal Fund Securities Limited Principal may be counted as a Municipal Securities Principal.
10. D. A broker-dealer with fewer than eleven full-time employees engaged in the performance of its municipal securities activities is required to have at least two Municipal Securities Principals.
11. 3. Which of the following would be considered a branch office?
12. A. Any office of convenience where associated persons occasionally and exclusively by appointment meet with customers
13. B. Any primary residence held out as a public office where the associated person meets clients
14. C. A vacation home other than a primary residence that is used for fewer than 30 business days in any one calendar year
15. D. Any location established solely for back office type functions, where no sales activities are conducted
16. 4. All of the following offices would need to be registered as an OMSJ except:
17. A. The office is the main office where no solicitation of orders occurs.
18. B. The office solicits orders by phone and faxes them to another office for review.
19. C. The office maintains custody of customer’s funds and securities, but does not solicit orders.
20. D. The office structures private