Series 3: Exercise

Taken from our Series 3 Online Guide

Exercise

Answer true or false.

1. _____ FCM customer funds must be deposited in a special account at the FCM.

2. _____ FCM customer funds may be commingled with other customers’ funds.

3. _____ FCM customer funds may not be commingled with the firm’s funds.

4. _____ FCM customer funds may be used as collateral for FCM loans.

5. _____ An FCM may use funds of one futures customer to provide margin for another futures customers.

6. _____ Funds for the sale of a commodity may be used to buy or sell over-the-counter futures options.

7. _____ FCM customer funds must be held in cash or in approved securities.

8. _____ An FCM may lend money to a customer only if the loan is secured with assets held in the customer’s

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