Chapter 9 Practice Questions
1. John is a representative who works for a bank dealer. Records of John’s correspondence with the public pertaining to municipal securities activities must be maintained for:
A. Six years
B. Three years
C. Two years
D. Six months
2. Miller Investments receives a confirmation of an inter-dealer trade with Brown Investments. The details of the trade differ from Miller’s own records. It calls Brown but is unable to resolve the discrepancy right away. What is Miller’s likely next step?
A. Send a DK notice to the NSCC
B. Send a DK notice to Brown
C. Send a cancellation notice to the NSCC
D. Send a cancellation notice to Brown
3. Municipal securities dealers are required to maintain records of customer complaints for:
A. Six years
B. Three years
C. Two years
D. Four years
4. Wanda holds a bond in registered form. She sells the bond to Reggie shortly before the record date of the next interest payment. Wanda receives the interest payment even though Reggie was entitled to it. Reggie should send an interest payment claim to:
A. The issuer’s registrar
B. His broker
C. Wanda’s broker
D. Wanda
5. An RVP settlement is:
A. A notification of close-out by a buyer to a seller
B. An agreement not to dispute a minor rule violation
C. An agreement by a seller to deliver a security immediately upon payment
D. A polite way of demanding notification for the delivery of a purchased security
6. Which of the following would make a bond ineligible for the Real-Time Trade Matching System?
A. Having a CUSIP number
B. Being held in book-entry form
C. Having an OID
D. Being held as a bearer bond
7. Firm A sends a close-out notice to Firm B for failing to deliver securities. The failure occurred because Firm C failed to deliver the same securities to Firm B. Which of the following is true?
A. Firm B must send a retransmittal notice