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. Jessica is a resident of Nebraska and a municipal advisor professional for Husker MA. She regularly advises municipalities on the issuance of municipal securities. This fall, Jessica decides to contribute $200 to the campaign of a candidate running for a U.S. senatorial race in Nebraska. The candidate is currently the governor of Nebraska. Which of the following is true concerning the contribution?
A. Because Jessica is able to vote in the election and the contribution is less than $250, the contribution will not trigger a two-year ban on municipal advisory business for Husker MA with the state of Nebraska.
B. Because the contribution is for a candidate for federal office, it will not trigger a two-year ban on municipal advisory business for Husker MA with the state of Nebraska.
C. The donation will trigger the ban on municipal advisory business with the state of Nebraska because any contribution to a federal official will trigger the ban.
D. The contribution will not trigger the ban on advisory business because there is an exemption for federal officials