Chapter 4 Practice Questions
1. A dealer is not required to submit the normal political contribution disclosures to the MSRB if:
A. The dealer has only engaged in a competitive underwriting during that quarter.
B. The dealer only made political contributions through its political action committee.
C. The majority of the dealer’s reportable contributions fall into the MFP de minimis exception.
D. The dealer has not engaged in municipal securities business for the last eight calendar quarters.
2. A blind advertisement:
A. Is improper if it fails to provide disclosure statements
B. Must not constitute a call to invest in municipal fund securities
C. Provides generic explanatory information relating to municipal fund securities in general
D. Is improper if it provides issuer contact information
3. Municipal securities business in the context of the “pay to play” rule includes:
A. Participating in a competitive underwriting
B. Purchasing municipal securities in a primary offering
C. Selling municipal securities in the secondary market
D. Providing financial advice for a primary offering after being selected in a competitive bid process
4. Dealers are required to submit statements to the MSRB disclosing their political contributions:
A. Immediately after each contribution is made
B. Once every calendar year
C. Once every six months
D. Once every quarter
5. If a municipal finance professional entitled to vote for an elected official of an issuer makes a $250 contribution to the official’s election and later gives $250 for inauguration expenses, then:
A. The MFP’s firm would be prohibited from conducting municipal securities business with the issuer for two years.
B. The MFP’s firm would not be prohibited from conducting municipal securities business with the issuer, because the contributions each fell under the de minimis exc