Series 52: Chapter 9 Practice Questions

Chapter 9 Practice Questions

1. 1. John is a representative who works for a bank dealer. Records of John’s correspondence with the public pertaining to municipal securities activities must be maintained for:
2. A. Six years
3. B. Three years
4. C. Two years
5. D. Six months
6. 2. Miller Investments receives a confirmation of an inter-dealer trade with Brown Investments. The details of the trade differ from Miller’s own records. It calls Brown but is unable to resolve the discrepancy right away. What is Miller’s likely next step?
7. A. Send a DK notice to the NSCC
8. B. Send a DK notice to Brown
9. C. Send a cancellation notice to the NSCC
10. D. Send a cancellation notice to Brown
11. 3. Municipal securities dealers are required to maintain records of customer complaints for:
12. A. Six years
13. B. Three years
14. C. Two years
15. D. Four years
16. 4. Wanda holds a bond in registered form. She sells the bond to Reggie shortly before the record date of the next interest payment. Wanda receives the interest payment even though Reggie was entitled to it. Reggie should send an interest payment claim to:
17. A. The issuer’s registrar
18. B. His broker
19. C. Wanda’s broker
20. D. Wanda
21. 5. An RVP settlement is:
22. A. A notification of close-out by a buyer to a seller
23. B. An agreement not to dispute a minor rule violation
24. C. An agreement by a seller to deliver a security immediately upon payment
25. D. A polite way of demanding notification for the delivery of a purchased security
26. 6. Which of the following would make a bond ineligible for the Real-Time Trade Matching System?
27. A. Having a CUSIP number
28. B. Being held in book-entry form
29. C. Having an OID
30. D. Being held as a bearer bond
31. 7. Firm A sends a close-out notice to Firm B for failing to deliver securities. The failure occurred because Firm C failed to deliver the same sec