Unit 9

What is the name for the legal framework of state laws for broker-dealers, registered representatives, investment advisors and investment advisor representatives?

A) The Uniform Securities Act

If an associated person is barred from the securities industry, which of the following is true?

A) The individual may associate with another member firm with SEC permission.

If an associated person is expelled from the securities industry, which of the following is true?

A) The individual may associate with another member firm with SEC permission.

An investor opens an account with BNZ Government Securities, a broker-dealer limiting its transactions exclusively to securities issued by the U.S. government. The account holds $250,000 of Treasury bonds, $250,000 of Treasury notes, and $50,000 in cash. If BNZ's broker-dealer business should fail, the investor would receive Securities Investor Protection Corporation (SIPC) protection in the amount of

B) $0. Although the vast majority of broker-dealers are required to be members of SIPC, those who deal exclusively in U.S. government securities are exempt.

Keegan and Drew, spouses, have a checking account at Gloria City National Bank. The balance is $450,000. What is their protection from SIPC if Gloria City fails?

B) There is no coverage for Keegan and Drew SIPC covers broker-dealers, not banks.

Which of the following organizations was created to protect investors financially from a bank failure?

C) Federal Deposit Insurance Corporation (FDIC)

A rep is a registered representative in State A. When would she be required to register in State B?

C) If she wished to sell securities to a resident of State B who was visiting State A

Broker-dealers and registered representatives may be subject to each of the following administrative and regulatory bodies except

C) Securities Investor Protection Corporation (SIPC).

If a married couple have a joint account with a market value of $1 million and a debit balance of $600,000, all of which is in securities, how much coverage would this account have?

D) $400,000 A joint account has a maximum coverage of $500,000; however, in a margin account only the equity is covered, so the debit balance is subtracted from the market value, leaving $400,000 equity.

SIPC coverage is best described by which of the following?

D) Covers up to $500,000 in cash and securities but no more than $250,000 in cash

Which of the following regarding monetary or fiscal policy is true?

Monetary policy is what the FRB engages in when it attempts to influence the money supply. Fiscal policy refers to governmental budget decisions enacted by the president and Congress to regulate federal spending and taxation, and those decisions impacting deficits and surpluses.

A broker-dealer's registration with the Securities and Exchange Commission (SEC) conveys that the SEC

has accepted the member firm's registration to do business.

The SEC has regulatory authority over all of these entities except

municipalities.

FDIC

per owner per account. does not cover mutual funds, annuities, life insurance policies, stocks and bonds,

All of the following are self-regulatory organizations (SROs) in the securities industry that are accountable for enforcing federal securities laws, as well as supervising securities practices within an assigned jurisdiction, except

the SEC. All SROs, including FINRA, the MSRB, and all listed exchanges, are accountable to the Securities and Exchange Commission (SEC). The SEC is the securities industry's primary regulatory body, not an SRO.

All of the following are examples of SROs in the securities industry except

the Securities Exchange Commission (SEC). SEC is a government entity and is not self-regulated

The law that provides the legal framework for state registration of securities is

the Uniform Securities Act.

A broker-dealer firm's registration to do business in a given state may be revoked by

the state's administrator.

Broker-dealers and registered representatives may be subject to each of the following administrative and regulatory bodies except

Securities Investor Protection Corporation (SIPC).

All of the following are self-regulatory organizations (SROs) except

Securities and Exchange Commission (SEC).

SIPC

covers per separate account