Chapter 8 Practice Questions
1.A new customer account form must include all of the following information except:
A.The customer’s date of birth
B.The customer’s net worth
C.The customer’s educational background
D.The name of the representative in charge of the customer’s account
2.Robert calls his broker on a secure line. He wants to open a new account but does not want to reveal too much information over the phone. Which of the following does he not need to supply to open a new account?
A.Full name
B.Date of birth
C.Social Security number
D.His signature
3.Customer account records must be updated at least every:
A.Six years
B.Three years
C.Year
D.Six months
4.William and Ruth share a joint tenants in common brokerage account. This account has all the following characteristics except:
A.The certificates of securities sold from the account must be signed by both parties.
B.The account can only be closed by both parties.
C.If one of them dies, that person’s estate will always receive half of the account’s assets.
D.Either party can trade in the account without getting explicit written permission from the other party.
5.A joint brokerage account owned by two unmarried persons in which the death of one of the owners causes his share of the assets to pass to his estate is referred to as:
A.Tenancy by the entirety
B.Joint tenants with rights of survivorship
C.Joint tenants in common
D.All of the choices listed
6.Regulation S-P helps protect customers from:
A.Recommendations to purchase high-risk securities such as S&P 500 index derivatives
B.Having their private information misused
C.Abusive commissions and sales charges
D.Money laundering
7.Which of the following custodian/minor combinations is possible for an UGMA account?
A.Betty White FBO Shelly Smith
B.James and Betty White FBO Bill Smith
C.James and Betty White FBO Ja