Other Federal and State Regulations

A Series 7 licensed individual wishes to sell "wrap" accounts. Which statements are TRUE? I. this individual must be state registered II. this individual must be federal registered III. this individual must pass either the series 65 exam or the series 66 exam IV. this individual is not required to take any additional licensing exams a.) I and III b.) I and IV c.) II and III d.) II and IV

a.) I and III.

Which statements are TRUE regarding the Federal Telephone Consumer Protection Act of 1991? I. Unsolicited calls cannot be made before 8am, or after 9pm, local time II. Solicited calls cannot be made before 8am, or after 9pm, local time III. If the caller states that he or she does not wish to receive calls then the person must be placed on a "Do not call" list. IV. if the caller states that he or she does not wish to receive calls, then the person must be referred to a supervisor. a.) I and III b.) I and IV c.) II and III d.) II and IV

a.) I and III.

Securities Investor Protection Corporation protects against: a.) broker-dealer failure b.) credit risk c.) fraudulent trading d.) loss of principal

a.) broker-dealer failure.

Which of the following maintain "Do not call" lists? I. SEC II. Member firm III. FTC IV. FINRA a.) I and IV b.) II and III c.) I, II, III d.) I, II, III, IV

b.) II and III.

State registration (blue sky) requirements apply to: I. registration of government and municipal securities II. registration of corporate securities III. registration of state chartered bank issues a.) I only b.) II only c.) III only d.) I, II, III

b.) II only.

In an SIPC liquidation, the trustee has distributed all securities registered in customer name. After this distribution, a customer has claim for $590,000 in securities and another $260,000 of cash (free credit balance). Which statement regarding SIPC coverage limits is true? a.) The customer is covered for the total amount of $850,000 b.) the customer is covered for $500,000 total, and becomes a general creditor for $350,000 c.) the customer is only covered for $500,000 of the securities; cash is not covered d.) the customer is only covered for $250,000 of the cash; securities are not covered

b.) the customer is covered for $500,000 total, and becomes a general creditor for $350,000.

A registered representative has mailed promotional material and response cards to potential clients in near-by affluent neighborhoods. The registered representative receives a returned signed response card from one of the prospects, and when calling the phone number provided, finds that it is on the National Do-not-call list. Which statement is true? a.) this prospect cannot be called by the registered representative b.) this prospect can be called by the registered representative c.) this prospect can only be called by the registered representative between the hours of 8am and 9pm d.) this prospect can only be called by the registered representative with written approval of the #24 general principal

b.) this prospect can be called by the registered representative.

The trust indenture act of 1939 applies to: I. US Government bonds II. Municipal bonds III. Corporate bonds a.) I only b.) II only c.) III only d.) I, II, III

c.) III only.

Which of the following actions taken by a fiduciary would NOT be consistent with the obligations imposed under the "Prudent Man Rule"? a.) diversifying a fixed income portfolio with securities of varying maturities b.) selecting AA rated corporate convertible bond investments to meet an investment objective of both income and capital gains c.) investing in small capitalization unlisted new issue investments for long term growth d.) writing covered calls against securities positions held in the account to increase income

c.) inves.ting in small capitalization unlisted new issue investments for long term growth

Which of the following callers is EXEMPT from the provisions of the Federal Telephone Consumer Protection Act of 1991? a.) telemarketing firm b.) real estate company c.) non-profit organization d.) securities firm

c.) non-profit organization.

State registration (Blue sky) requirements apply to: I. resident salesperson soliciting in that state II. non-resident salespersons soliciting in that state III. resident issuers of securities offered in that state IV. non-resident issuers of securities offered in that state a.) I and III b.) II and IV c.) I and II d.) I, II, III, IV

d.) I, II, III, IV.

Which information, at a minimum, must be disclosed when making unsolicited phone calls to potential customers? I. Caller's name II. Firm's name III. Address or phone number from which the caller is dialing a.) I only b.) II only c.) I and III only d.) I, II, III

d.) I, II, III.

A customer is very satisfied with the service provided by his registered representative and gives the representative the name and telephone number of a good friend that needs investment advice. When the representative enters the telephone number of the friend, it comes up as block since this person is on the firm's "Do not call list", which statement is TRUE? a.) because the friend's name was given as a referral, this individual can be solicited by the representative b.) because the friend's telephone number was given as part of the referral, this individual can be solicited by the representative c.) because the referral was made by an existing customer of the firm, this individual can be solicited by the representative d.) because this individual is on the firm's "do not call list", no solicitation by the representative is permitted

d.) because this individual is on the firm's "do not call list", no solicitation by the representative is permitted.

A customer has a cash account and a margin account at a brokerage firm. In a liquidation under SIPC: a.) only the equity in the margin account is covered b.) only the cash account value is covered c.) each account is covered separately up to $500,000 total coverage per account d.) both accounts are treated as one account with coverage limited to $500,000

d.) both accounts are treated as one account with coverage limited to $500,000.

The legislation that requires the CEO of a publicly traded company to make an annual certification of the information presented in the company's financial statements is the: a.) securities act of 1933 b.) securities exchange act of 1934 c.) trust indenture act of 1939 d.) sarbanes-oxley act of 2002

d.) sarbanes-oxley act of 2002.