Dashboard Test ID: 270144179 31%

Question #49 of 50Question ID: 1570833 Your customer retired two years ago at age 70. He recently took a job with a retailer greeting customers. He would like to contribute to a retirement plan to accumulate additional money with the view to leave something to his grandchildren. You would most likely advise him to open A)a Roth IRA. B)an annuity. C)a traditional IRA. D)a mutual fund.

A)a Roth IRA. Explanation The Roth IRA would require after-tax (nondeductible) contributions but would allow earnings to accumulate tax deferred as in any retirement plan. Roth IRA distributions need not begin at age 73, and if holding period requirements are satisfied, all distributions are tax free. LO 6.e

Question #12 of 50Question ID: 1466757 All of the following would be requirements of the Telephone Consumer Protection Act of 1991 except A)record the names and numbers of those who request to be put on the National Do Not Call Registry. B)contact each customer and ask if they wish to be put on the National Do Not Call Registry. C)have written policies and procedures for the National Do Not Call Registry. D)train representative on use of the National Do Not Call Registry.

B)contact each customer and ask if they wish to be put on the National Do Not Call Registry. Explanation There is no requirement to call customers in advance to ask if they want to be on the National Do Not Call Registry; the other options are required. LO 11.j

Question #18 of 50Question ID: 1465129 Which of the following would be required for a good 'til canceled order to remain in force for more than six months? A)Nothing; it stays on the books until the customer cancels it B)The broker-dealer would need to reconfirm the order for it to remain in force C)The customer would need to reconfirm the order D)The specialist on the NYSE would need to reconfirm the order

C)The customer would need to reconfirm the order Explanation Good 'til canceled orders historically have been canceled the end of April and October. Some firms will cancel them more frequently, but for the order to stay in effect longer than six months, the customer would need to reinstate the order. LO 1.g

Question #13 of 50Question ID: 1465084 Your customer purchased 300 shares of XYZ stocks six months ago and sold the shares last week. The actions your customer took in relation to XYZ were to A)buy short and sell long. B)buy short and sell short. C)buy long and sell long. D)buy long and sell short.

C)buy long and sell long. Explanation The purchase of the stock is a long buy. The subsequent sale of the long position is a long sale. LO 1.g

Question #16 of 50Question ID: 1582821 All of the following are true of Roth IRAs except A)contributions are not deductible. B)distributions are not required after reaching 73. C)distributions are required after reaching 73. D)anyone with earned income under a certain limit may contribute.

C)distributions are required after reaching 73. Explanation Because distributions are not taxable on Roth IRAs, there are no required distributions. Roth IRAs have income limits and contributions to Roth IRAs are not deductible. LO 6.e

Question #30 of 50Question ID: 1466679 An AML compliance officer should do all of the following except A)insure the firm is meeting all requirements of the Bank Secrecy Act for opening new accounts. B)insure the firm is properly training employees on the requirements of the BSA. C)monitor compliance with all BSA requirements at the firm. D)notify customers immediately when an SAR is being filed.

D)notify customers immediately when an SAR is being filed. Explanation Firms are prohibited from notifying customers when an SAR is filed. LO 11.b

Question #19 of 50Question ID: 1466117 A new client of the member firm has just opened a margin account. After account approval, the client's initial trade is an order to purchase 100 shares of LMN common stock at $25. With Regulation T at 50%, in order to be in compliance with all regulations, the client would need to deposit A)$2,000. B)$1,250. C)$2,500. D)$1,000.

A)$2,000. Explanation No borrowing can take place in a margin account without at least $2,000 in equity. It is only necessary to pay in full when the purchase is less than $2,000. It is only necessary to deposit more than $2,000 when the trade exceeds $4,000. LO 6.g

Question #31 of 50Question ID: 1466174 The minimum initial requirement when purchasing 100 shares at $30 in a new account would be A)$2,000. B)$750. C)$375. D)$1,500.

A)$2,000. Explanation The requirement is normally 50% but not less than $2,000 unless the purchase price is less than $2,000. Then only 100% of the purchase price would be required. LO 6.g

Question #4 of 50Question ID: 1587844 Your client, Janice Thomas, is an active trader and wants to invest in a managed equity portfolio that she can trade intraday. Which of the following should you recommend? A)A closed end fund B)A mutual fund C)An index exchange-traded fund (ETF) D)An exchange-traded note (ETN)

A)A closed end fund Explanation A closed end fund is actively traded and most of them are equity funds. They trade on the exchanges like stocks. Mutual funds can be equity funds and can be actively managed, but because they only trade once per day, they are not good for active trading. ETF are actively traded but are not actively managed. ETNs are debt securities, not equities. LO 7.d

Question #10 of 50Question ID: 1483024 Great Plains Investment is a member firm that maintains an inventory in BigBox Stores, Inc., common stock. When transacting business in BigBox stock, the firm is most likely acting in what capacity? A)Market maker B)Agent C)Underwriter D)Broker

A)Market maker Explanation When a BD acts as a dealer (or market maker), they are selling securities from the firm's inventory to a customer or buying a security from a customer for the dealer's inventory. LO 1.h

Question #2 of 50Question ID: 1483022 ABC Securities is a FINRA member broker-dealer that maintains an inventory in BigTech Computing stock. When transacting business in BigTech stock, ABC is most likely acting in what capacity? A)Market maker B)Underwriter C)Agent D)Broker

A)Market maker Explanation When a BD acts as a dealer (or market maker), they are selling securities from the firm's inventory to a customer or buying a security from a customer for the dealer's inventory. LO 1.h

Question #36 of 50Question ID: 1483263 Which of the following is true regarding nonregistered personnel of FINRA member firms? A)Nonregistered employees of broker-dealers have a limited scope of activities. B)All employees of a member firm must be registered. C)Nonregistered employees of broker-dealers have an unlimited scope of activities as long as they are under the direct supervision of a principal. D)Nonregistered employees of broker-dealers have an unlimited scope of activities as long as they are under the direct supervision of a registered representative.

A)Nonregistered employees of broker-dealers have a limited scope of activities. Explanation Nonregistered employees of broker-dealers have a limited scope of activities. They may not perform securities business even if supervised by registered persons. LO 11.h

Question #45 of 50Question ID: 1466709 Regarding the potential financial exploitation of seniors, impacted accounts would be those for individuals A)age 65 and older, or age 18 and older who the member reasonably believes has a mental or physical impairment that renders the individual unable to protect her own interests. B)age 55 and older, or age 21 and older who the member reasonably believes has a mental or physical impairment that renders the individual unable to protect her own interests. C)who at any age are unable to protect her own interests. D)who are past the age of 75 and the member reasonably believes has a mental or physical impairment that renders the individual unable to protect her own interests.

A)age 65 and older, or age 18 and older who the member reasonably believes has a mental or physical impairment that renders the individual unable to protect her own interests. Explanation Financial Industry Regulatory Authority (FINRA) has specifically identified for the purpose of preventing financial exploitation of seniors individuals who are age 65 and older, or age 18 and older who the member reasonably believes has a mental or physical impairment that renders the individual unable to protect her own interests. LO 11.f

Question #6 of 50Question ID: 1466655 The Bank Secrecy Act requires that all financial services firm must appoint A)an anti-money laundering officer. B)a privacy officer. C)a bank security associate. D)a chief compliance officer.

A)an anti-money laundering officer. Explanation The BSA requires that all financial institutions appoint and empower an officer to create and implement anti-money laundering procedures. LO 11.b

Question #50 of 50Question ID: 1466727 All of these are true regarding correspondence except correspondence A)must be filed with FINRA within 10 business days. B)must be to 25 or fewer retail customers or prospects within 30 days. C)must be in good faith. D)may be reviewed after use (postreview).

A)must be filed with FINRA within 10 business days. Explanation Correspondence may be either pre-use approval or postuse review; it is the firm's decision. All communication with the public must be in good faith. Correspondence may go to 25 or fewer persons within 30 days. Unlike retail communication, correspondence does not need to be filed with FINRA. LO 11.i

Question #8 of 50Question ID: 1466138 All of the following statements about securities purchases are true except A)securities may not be purchased with borrowed money. B)in a long margin account, customers borrow money for securities purchases. C)in a short margin account, customers borrow securities for short sales. D)in a cash account, the customer pays in full for securities.

A)securities may not be purchased with borrowed money. Explanation Borrowing is a perfectly acceptable practice when buying and selling securities, whether it is cash that is borrowed for purchases or securities that are borrowed, chiefly from other investors who have signed a loan consent agreement, allowing their securities to be borrowed for short sales. LO 6.g

Question #43 of 50Question ID: 1465165 Your client, Alice Tate, lives in Irvine, California, and wishes to purchase some bonds that would be both state- and federal-tax free for her. You recommend some school district bonds from Costa Mesa. She then asks when she would need to pay for the bonds. You should tell her A)trade date plus 2 business days. B)trade date plus 3 business days. C)trade date. D)trade date plus 1 business day.

A)trade date plus 2 business days. Explanation Regular way settlement is T + 2 for everything except treasuries, money market securities, and options. LO 1.i

Question #33 of 50Question ID: 1466702 Mr. Smith enters a trade in a stock at the same time as Mr. Jones, who has inside information regarding that company. Mr. Smith is considered A)an outside tippee. B)a contemporaneous trader. C)an informer. D)an inside tipper.

B)a contemporaneous trader. Explanation Someone who enters into a transaction at the same time as someone else who has and may be acting on inside information is known as a contemporaneous trader. Contemporaneous traders may sue persons who have violated insider trading regulations, and suits may be initiated up to five years after the violation has occurred. LO 11.d

Question #42 of 50Question ID: 1466286 Your client, Chue Xiong, is a very wealthy, sophisticated investor and has many years of experience investing in aggressive strategies. He is looking for very high rates of return on a very large investment and is willing to have the money tied up for a few years. Which of the following would be suitable for him? A)A broad-based domestic stock mutual fund B)A hedge fund C)A corporate bond fund D)A mutual fund that invest solely in large cap value stock

B)A hedge fund Explanation The mutual funds are not likely to get high rates of returns, but because Xiong is comfortable with high-risk investment strategies and having his money locked up for a long time, a hedge fund could work for him. LO 7.d

Question #15 of 50Question ID: 1494690 The bureau of the Treasury Department that combats money laundering and international and domestic terrorist financing is called A)the SAR. B)FinCEN. C)the Comptroller of the Currency. D)the ATF.

B)FinCEN. Explanation The SAR is the suspicious activity report. The Comptroller of the Currency deals with banking regulations. The ATF is the Bureau of Alcohol, Tobacco, Firearms and Explosives. FinCEN is the Financial Crimes Enforcement Network, which deals with money laundering. LO 11.b

Question #46 of 50Question ID: 1466135 Which of the following must be opened as a cash account? I. Custodial accounts II. Individual retirement accounts III. Joint accounts IV. Partnership accounts A)I and III B)I and II C)III and IV D)II and IV

B)I and II Explanation Certain accounts, such as IRAs, corporate retirement accounts, and custodial accounts, must be opened as cash accounts as opposed to margin accounts. For individual accounts, joint accounts, and corporate and partnership accounts, there is no such requirement, though the final decision on them is up to the broker-dealer carrying the account. LO 6.g

Question #25 of 50Question ID: 1483087 In a stock rights offering, which of the following statements is true? A)The exercise period is typically long term, five years or more. B)Rights are issued to existing shareholders on a basis of one right for one existing share. C)The number of rights issued is based on the number of new shares to be issued. D)The rights allow the holder to exercise and purchase the stock at a price higher than the market.

B)Rights are issued to existing shareholders on a basis of one right for one existing share. Explanation A rights offering allows stockholders to purchase common stock below the current market price. The rights are valued separately from the stock and trade in the secondary market during the subscription period, which is typically 30 to 45 days. Existing shareholders receive one right per share owned. The number of rights required to purchase one share of the new issue depends on the number of outstanding shares and the number of new shares offered. LO 2.g

Question #37 of 50Question ID: 1465318 Which of these is considered a standard corporate action where adjustments made to cost basis, for outstanding shares, are standardized? A)Takeover B)Stock split C)Buyback D)Merger

B)Stock split Explanation The most common corporate actions—dividend declarations (both cash and stock), stock splits (both forward and reverse), and the issuance of rights and warrants—are standardized regarding any adjustments to cost basis for outstanding shares. Some corporate actions are unique, and thus standardized adjustments would not be applicable. These would include, but not be limited to, the following: mergers and acquisitions (M&A), takeovers, spinoffs, tender offers, and buybacks. LO 2.h

Question #24 of 50Question ID: 1466279 Which of the following is a nonfinancial investment consideration? A)The customer's net worth, excluding his home and property B)The customer's place of employment and status C)The customer's total credit card debt D)The amount of the customer's monthly income available for investment

B)The customer's place of employment and status Explanation Nonfinancial investment considerations are anything that can't be preceded by a dollar sign. The customer's place of employment and status is the only choice that affects the customer's investment characteristics but doesn't directly represent either a lump sum of money or a cash flow. LO 7.d

Question #29 of 50Question ID: 1466770 Firms are required to provide a copy of their business continuity plan (BCP) at which of the following times? A)Quarterly B)When requested C)Monthly D)Annually

B)When requested Explanation BCPs must be provided at account opening, made available on the firm's website, and whenever a customer requests a copy. LO 11.k

Question #44 of 50Question ID: 1575274 Nate McCann is closing on a house tomorrow and wants to sell some securities to meet closing costs. He wants to know how soon he could get the money and what he needs to do. You should tell him A)if he does the trade today he won't be able to get the money for 3 business days because regular way settlement is T + 3. B)if he does the trade today for cash settlement he could settle today. C)if he does the trade today for cash settlement he would settle tomorrow. D)if he does the trade today he won't be able to get the money for 2 business days because regular way settlement is T + 2.

B)if he does the trade today for cash settlement he could settle today. Explanation Cash settlement is same day settlement. LO 1.i

Question #41 of 50Question ID: 1465329 An investor is long 300 shares of MAS at 45. The stock has just undergone a 3:1 split. The investor's new position is A)long 100 shares at 45. B)long 900 shares at 15. C)long 900 shares at 45. D)long 100 shares at 15.

B)long 900 shares at 15. Explanation The split is a forward split, which means the number of shares increases, while the price decreases. At 3:1, the number of shares goes up by a factor of 3 and the price goes down by a factor of one-third (i.e., to one-third of its previous value). The rule is that the total value of the position must remain unchanged before and after the adjustment. In this case, the original position's value was 300 shares × $45, or $13,500. The new position is valued at 900 × $15, which is also $13,500. LO 2.h

Question #40 of 50Question ID: 1466787 A broker-dealer's customer will be relocating for a position with a higher salary and bonus potential. This requires A)opening an account with a broker-dealer in the new location. B)notification to the broker-dealer of the change within 30 days. C)reviewing investment objectives within the next 90 days. D)completing a new account application within 30 days.

B)notification to the broker-dealer of the change within 30 days. Explanation When there are significant changes to the client's status, such as salary and bonus potential as well as change of address, the client should notify the member firm within 30 days. LO 11.k

Question #26 of 50Question ID: 1465364 A customer receives a voting proxy from a broker-dealer for shares owned by the customer and held in street name. The customer returns the proxy but later decides to attend and vote at the shareholder meeting in person. The voting proxy A)would be deemed the shareholders vote because it would have already been counted. B)would be revoked, and only the vote at the meeting would count. C)would need to be rescinded in writing by the broker-dealer in order for the shareholder to vote in person. D)once signed could not be replaced by a vote made in person or by another proxy executed later.

B)would be revoked, and only the vote at the meeting would count. Explanation A proxy is automatically revoked if the stockholder attends the shareholder meeting and votes. Additionally, a proxy is revoked if another is executed later. LO 2.i

Question #34 of 50Question ID: 1465109 An order is entered by a customer to sell at 30 stop limit. Once the order is entered, the stock trades in the following sequence: 32, 29, 31, and 33. The order would be executed and the investor would receive a price of A)30. B)29. C)31. D)32.

C)31. Explanation This is a sell stop order with a limit of 30. Once the stock trades at 30 or lower, the order is elected (triggered) and becomes a live working order. This occurs at 29. The order will then be executed at its limit (30) or better. This occurs at 31. LO 1.g

Question #32 of 50Question ID: 1465095 An investor enters a sell stop limit order at 60. Following the order entry, trades occur at 62, 60, 59, 61, and 63. The investor will most likely receive A)60. B)59. C)61. D)63.

C)61. Explanation This is really two orders. The first is to stop at 60. That is, once the stock trades at 60 or lower, the order is elected (triggered) and becomes a live working order. That order is to sell at 60 or better. Therefore, the first time the stock hits 60 (or less), is the trade at 60. That triggers the sell limit order to sell at 60 or better. The next trade is at 59 and that is not an acceptable price given the limit order set at 60. The following price, however, at 61, is the next acceptable price after the order is triggered and that is where the order would most likely be executed. LO 1.g

Question #7 of 50Question ID: 1465355 Shareholders that tender their shares in a tender offer experience which of the following tax consequences? A)There is no effect. B)A capital gain occurs if their cost basis is greater than the tender offer. C)A capital loss occurs if their cost basis is greater than the tender price. D)Investment income is received equal to the value increase of the new shares.

C)A capital loss occurs if their cost basis is greater than the tender price. Explanation Shareholders who tender their shares effectively sell the shares at the tender price ($30) and realize a gain or a loss depending on what their cost was for the shares tendered. LO 2.i

Question #28 of 50Question ID: 1466666 If a broker-dealer suspects that a transaction involves funds derived from illegal activity, a suspicious activity report (SAR) would be triggered at what threshold? A)More than $5,000 in funds or other assets B)More than $10,000 in funds or other assets C)At least $5,000 in funds or other assets D)At least $10,000 in funds or other assets

C)At least $5,000 in funds or other assets Explanation The threshold for triggering a suspicious activity report (SAR) is at least $5,000 in funds or other assets. Do not confuse this with a Currency Transaction Report (CTR), which is triggered by amounts greater than $10,000. LO 11.b

Question #11 of 50Question ID: 1466776 A customer leaves the sale proceeds from a recent transaction in the account. This amount would be considered I. a free credit balance. II. a margin debit balance. III. available to the customer at any time. IV. a loan to the broker-dealer, who will pay interest to the customer. A)I and IV B)II and IV C)I and III D)II and III

C)I and III Explanation Sale proceeds that are not reinvested and held in the account at the broker-dealer are considered a free credit balance. These funds are available to the customer on demand (freely available). LO 11.k

Question #39 of 50Question ID: 1466649 Money laundering activities are most easily caught during which phase? A)Structuring B)Integration C)Placement D)Layering

C)Placement Explanation Illicit funds are most susceptible to detection during the placement phase, where the funds first enter the money laundering scheme. LO 11.a

Question #35 of 50Question ID: 1466177 Which of the following transactions, if any, must be done in a margin account? A)Buy 100 ABC to open B)Sell 100 ABC to close C)Sell 100 ABC to open D)All of these must be done in a margin account

C)Sell 100 ABC to open Explanation Selling to open (a short sell) can only be done in a margin account. The others can be done in a cash account or margin account. LO 6.g

Question #5 of 50Question ID: 1466673 Which of the following acts deals with money laundering? A)The Securities Investor Protection Act of 1970 B)The Securities Exchange Act of 1934 C)The PATRIOT Act D)The Securities Act of 1933

C)The PATRIOT Act Explanation The Securities Act of 1933 requires the registration of most new issues, The Securities Exchange Act of 1934 created the SEC, the Securities Investor Protection Act of 1970 created SIPC, and The PATRIOT Act written after 9/11 addresses money laundering and other anti-terrorist issues. LO 11.b

Question #48 of 50Question ID: 1466108 Which of the following are true of both qualified plans and nonqualified plans? A)Tax on interest and dividends are deferred, but not on capital gains B)Contributions are tax deductible C)The accounts grow tax deferred D)Contributions are not tax deductible

C)The accounts grow tax deferred Explanation With qualified plans, deposits go in before taxes and grow tax deferred. All withdrawals are taxable. With nonqualified plans, deposits are made after tax, and distributions above the cost basis are taxable. LO 6.f

Question #21 of 50Question ID: 1465110 An investor who has a short position in 500 shares of JKH common stock would eliminate that position by A)entering an opening purchase order for 500 shares of JKH. B)entering a closing sale order for 500 shares of JJK. C)entering a closing purchase order for 500 shares of JKH. D)entering a closing purchase order for 500 shares of ABC.

C)entering a closing purchase order for 500 shares of JKH. Explanation In order to eliminate a position, long or short, the investor always takes an action opposite that of the one that began (opened) the position. Therefore, we always close the position with a closing order. In the case of a short position, we began with a sale, so we close with a purchase of the same security that was initially sold short—in this case, 500 shares of JKH. LO 1.g

Question #3 of 50Question ID: 1466744 All of the following are classifications of communications with the public except A)correspondence. B)retail communications. C)sales literature. D)institutional communications.

C)sales literature. Explanation FINRA has three classifications of communication with the public. Correspondence is communication to 25 or fewer retail investors in a 30-day period. Retail communications is to more than 25 retail investors in a 30-day period. Institutional communication is going to banks, insurance companies, mutual funds, et cetera. LO 11.i

Question #38 of 50Question ID: 1570832 At what minimum age can retirement withdrawals be made from an individual retirement account (IRA) without a penalty? A)65 years old B)62 years old C)73 years old D)59½ years old

D)59½ years old Explanation The minimum age to withdraw funds from a tax-qualified plan without penalty is 59½. Before that age, withdrawals are subject to a 10% penalty on growth withdrawn unless an exclusion applies. LO 6.e

Question #47 of 50Question ID: 1483266 Which of the following persons would not need to be fingerprinted? A)A principal of a firm who does not deal directly with the public B)A nonregistered person who handles and distributes incoming mail C)A registered representative in training D)A nonregistered person who answered phone calls and takes messages

D)A nonregistered person who answered phone calls and takes messages Explanation All registered persons must submit fingerprints, and all principals are registered persons. A person that handles incoming mail is very likely to handle checks, certificates, and other customer assets and must submit fingerprints. LO 11.h

Question #1 of 50Question ID: 1465365 If a shareholder does not wish to attend an annual stockholders' meeting, but still wishes to vote, the shareholder may confer a limited power of attorney on another party to vote the shares. This power is known as A)a stand-in. B)a substitute. C)a voting power. D)a proxy.

D)a proxy. Explanation Most voting shareholders choose not to undertake the travel, expense, inconvenience, and time away required to attend a shareholders' meeting. Having someone else vote the shares is called voting by proxy and is a way to stay at home but still have a voice in crucial corporate decisions. LO 2.i

Question #23 of 50Question ID: 1465333 If a stock is at risk of failing to maintain the minimum price requirements to remain listed on the NYSE, the most likely corporate action taken to preserve the listing could be A)reducing staff. B)a stock dividend. C)increasing earnings. D)a reverse split.

D)a reverse split. Explanation Reverse splits are a way of increasing a company's share price. In a reverse split, the number of shares outstanding decreases, but the price per share increases. As with all adjustments, a shareholder's total position in the stock remains unchanged before and after the action. LO 2.h

Question #20 of 50Question ID: 1466707 Rules to protect the public during initial public offerings (IPOs) include all of the following except A)members cannot take advantage of their insider status to gain access to shares for their own benefit. B)members may not withhold shares for their own benefit. C)shares must be offered to the public at the public offering price. D)shares may be held to reward others who can direct business to the member.

D)shares may be held to reward others who can direct business to the member. Explanation Designed to protect the integrity of the public offering process, the rules ensure that members make a bona fide public offering of securities at the public offering price, do not withhold securities in a public offering for their own benefit or use shares to reward others in a position to direct future business to the member and that members and their associated persons do not take advantage of their insider status to gain access to new issues for their own benefit at the expense of public customers. Note that this is an "except" question. "Shares may be held to reward . . ." is not only not in the rule, it is expressly prohibited. LO 11.e

Question #9 of 50Question ID: 1466755 Calls made regarding of all of the following under the Telephone Consumer Protection Act of 1991 (TCPA) are exempt except A)those made to parties with whom the caller has an established business relationship. B)those made for legitimate debt collection purposes. C)those on behalf of a tax-exempt nonprofit organization. D)those made that are unsolicited for the purpose of prospecting new clients.

D)those made that are unsolicited for the purpose of prospecting new clients. Explanation The TCPA exempts calls made to parties with whom the caller has an established business relationship or from whom the caller has prior express permission or invitation to call, call made on behalf of a tax-exempt nonprofit organizations or not made for a commercial purpose and those made for legitimate debt collection purposes. Calls made unsolicited for the purpose of prospecting new clients or to solicit sales of securities products or services of broker-dealers are covered by the act. LO 11.j

Question #17 of 50Question ID: 1466057 Three brothers open a joint account instructing you that if they die, they want the cash and securities in the account to go to the remaining parties to the account. The account should be opened A)as a transfer on death (TOD) account. B)as a tenants in common (TIC) account. C)as a custodial account. D)with rights of survivorship.

D)with rights of survivorship. Explanation Under joint tenants with right of survivorship (JTWROS), each brother's interest in the account would go to the surviving brother. Although JTWROS accounts may be opened with a TOD designation, that is not the best answer to this question - that is a feature that would be added to the account. From time to time, you will see questions on the exam where it will be a challenge to choose between two good-looking answers. The key is to pick the one that is the most appropriate to the specific question. LO 6.a

Question #22 of 50Question ID: 1466793 All of the following would be acceptable methods for the customer opting out of allowing the broker-dealer to share their nonpublic personal information except A)checking a box. B)opting out electronically. C)calling a toll-free number. D)writing a letter.

D)writing a letter. Explanation Writing a letter is considered too difficult. The process to opt-out must be virtually effortless. LO 11.k