Exercise
Answer true or false.
1.Records relating to the verification of identification must be kept at least three years.
2.Full trading authority allows a third party to trade in an account and withdraw funds from the account.
3.A customer’s age is required information to complete a suitability questionnaire.
4.After a married couple signs a joint party agreement upon opening a joint account, both parties are able to make transactions in the account without permission from the other.
5.A custodian is not allowed to withdraw funds from an UGMA account unless she spends the funds on the minor or reimburses herself for money spent on the minor.
Choose the best answer.
6.Ellen called her broker from her nuclear bunker on a secure line and is not too crazy about giving out information, but would like to open an account. Which of the following is not required to open a new account?
A.Full name
B.Date of birth
C.Social Security number or tax ID
D.The customer’s signature
7.John decides to donate $12,000 worth of stock to his 10-year-old nephew Ralph’s UGMA account. As Ralph gets older, however, Ralph begins to exhibit increasingly irresponsible behavior. John goes to his broker and asks him to remove the stock from Ralph’s custodial account. His broker tells him that:
A.This is no problem.
B.The gift of stock cannot be reversed.
C.Only stock in the amount of the original gift can be removed, and all growth must stay in the account.
D.The stock can be removed with a court order.
8.An agent who works for Broker-dealer A is allowed to open an account with Broker-dealer B as long as which of the following two conditions are met?
I.Broker-dealer B provides Broker-dealer A with written documentation that the agent is opening an account with the firm
II.The agent notifies, and receives prior written consent from, Broker-dealer A of his intent to open an account with Broker-dealer B
III.B