Chapter 4 Practice Questions
1.FINRA’s authority over sanctions makes it possible to impose all of the following on a person associated with a member except:
A.Send a person to jail
B.Suspend a person
C.Impose a fine on a person
D.Censure a person
2.What penalties may FINRA impose for a minor rules violation after the alleged violator has submitted an MRVP letter?
A.Up to a $2,500 fine
B.Suspension and/or up to a $2,500 fine
C.Suspension, expulsion, and/or up to a $10,000 fine
D.Suspension, expulsion, and/or a fine of any amount
3.FINRA may request that a member submit a letter of Acceptance, Waiver, and Consent if:
A.The member wishes to dispute a violation
B.The member chooses not to dispute a violation
C.The member wishes to register with a state securities administrator
D.The member holds customer margin accounts
4.By signing an arbitration agreement, the parties agree to all of the following except:
A.To give up the right to sue each other in court
B.That the arbitration award will be final and binding
C.That the ability of the parties to obtain discovery is generally more limited in arbitration than in court proceedings
D.That the arbitrators must explain the reason(s) for their award in writing
5.In disputes between an associate and a member firm that do not involve a statutory discrimination claim, what is the composition of the panel of arbitrators?
A.If the panel consists of one arbitrator, the arbitrator must be nonpublic.
B.If the panel consists of three arbitrators, the panel will be made up of two nonpublic arb