Chapter Three Practice Questions
1.Which of the following does a municipal securities broker-dealer or municipal advisor have to pay to the MSRB?
I.$500 initial registration fee
II.$1,000 initial registration fee
III.$500 annual registration fee
IV.$1,000 annual registration fee
A.II and IV
B.I and III
C.I and IV
D.II and III
2.Which of the following is true of MSRB registration?
A.The annual fee must be paid by September 30.
B.The information on Form A-12 must be affirmed within 14 days of the end of the calendar year.
C.Form A-12 must be updated within 10 days of any information becoming inaccurate.
D.Failure to pay the annual fee may result in a $25 monthly late fee.
3.How long is a municipal advisor required to keep records regarding its written supervisory procedures?
A.Three years
B.Four years
C.Five years
D.Lifetime
4.Jon Smith is a resident of State A and a municipal advisor professional for XYZ Municipal Advisory. Jon regularly advises municipalities on the issuance of municipal securities. Jon contributes $150 to the campaign of his friend, Brad, who is running for public office in State B. The position that Brad is running for is groundskeeper of a local park, where his sole responsibility under state law will be keeping the park maintained and free of litter. Which of the following is true concerning this contribution?
A.This contribution will prevent Jon from doing municipal advisory business as a municipal advisor for State B for the next two years, but it will not impact the other employees of XYZ Broker-Dealer.
B.This contribution will prevent all employees of XYZ Municipal Advisory from doing municipal advisory business as a municipal advisor for State B for the next two years.
C.If Jon doubles his contribution, it will prevent Jon from doing municipal advisory business for State B for the next two years.
D.Regardless of the value of the contribution, thi