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. Ron calls you on a secure line from his bunker. He wants to open an account but does not want to reveal too much information on the new customer account form. Which of the following does he need to provide before the account may be opened?
I. His name and address
II. Whether he is of legal age
III. His Social Security number
IV. His signature
A. I and II
B. II and III
C. III and IV
D. I and IV
3. A customer should be asked to update his suitability information a minimum of 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 by contract
C. Joint tenants with rights of survivorship
D. Joint tenants in common
6. Which of the following is not a requirement for a customer opening an options account?
A. He must receive a copy of the options risk disclosure document within two business days of the first trade made in the account.
B. He must have his account approved by a pri