Chapter 2 Practice Questions
1. Which of the following are types of trading authorization?
I. Limited
II. Restricted
III. Classified
IV. Full
A. I and II
B. I and IV
C. II and III
D. II and IV
2. A broker may effect transactions with discretionary authority:
A. When customers are on vacation out of the country
B. When customers’ assets are underperforming
C. When permission is given prior to each transaction
D. Upon receipt of customers’ signed written permission
3. Jack is about to enter the federal witness protection program, and he wants to have Rosalie, a trusted friend, take care of everything in his life while Jack “disappears” into the program. Which power of attorney would be most appropriate?
A. General
B. Limited
C. Financial
D. Unlimited
4. All of the following activities require an Office of Supervisory Jurisdiction except:
A. Accepting new customer accounts
B. Receiving customer orders
C. Maintaining custody of customer securities
D. Executing customer orders
5. A branch office that doesn’t supervise any non-branch office must be inspected once every:
A. Year
B. Two years
C. Three years
D. Six years
6. West Memphis Investments has just implemented a new compliance program in accordance with FINRA rules. The company must keep retail communications and institutional communications for not less than ____ from last use.
A. One year
B. Two years
C. Three y