Chapter 2 Practice Questions
1. Which of the following can occur only in an Office of Supervisory Jurisdiction?
A. Creation of sales literature
B. Solicitation of customer orders
C. Initial completion of client paperwork
D. Order execution
2. Swatham Industries has just been put on notice that it has too many personnel (10) who have recently been associated with disciplined firms. Swatham, an employer of 30 people in all, wants to opt out. How many employees in question must Swatham fire and how quickly in order to get back below the threshold and avoid having to operate by the taping rule?
A. Four; 30 days
B. Four; 60 days
C. Six; 30 days
D. Six; 60 days
3. Which of the following records must always be kept in writing at each Office of Supervisory Jurisdiction?
A. A list of all prospects contacted by phone within the last 30 days
B. Written supervisory procedures
C. Copy of the FTC’s National Do Not Call Registry
D. Copy of every registered representative’s fingerprints
4. A registered principal is conducting his firm’s annual internal inspection at its OSJs. What are his responsibilities with respect to this written report?
I. To review customer account records for irregularities and abuses
II. To test policies and procedures for safeguarding customer accounts
III. To evaluate supervision of customer accounts serviced by branch office managers
A. II only
B. III only
C. I and II
D. I, II, and III
5. For representatives whose telemarketing activities are subject to the tape-recording rule, when must the reports reviewing those taped conversations be submitted to FINRA?
A. Twice a year
B. Within 30 days of the end of each calendar quarter
C. Within 30 days of the end of each month being monitored
D. At the close of each quarter
6. FINRA may impose sanctions when a member or person associated with a member violates securities laws and rules. Which of the following are possible