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| Section | Objectives |
|---|---|
| Job Functions Overview | - Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile
|
Question 1
If a mutual fund has invested its assets by allocating about one-third each for bonds, preferred stocks, and
common stocks, it is identified as:
A. an income fund
B. a unit investment trust fund
C. a balanced fund
D. a specialized fund
Question 2
The FINRA Conduct Rules permit a transaction made "seller's option" to be delivered earlier than the
expiration of the contract if:
A. the client requests it
B. the buyer is a non-clearing member
C. the buyer is given one day notice in writing
D. the seller is located in New York City
Question 3
A NYSE floor member executing an order for a public customer asks the specialist in the stock to
guarantee a price while giving the customer an opportunity to obtain a better price. This procedure is
known as:
A. stopping stock
B. a stop order
C. a special deal
D. floor protection
Question 4
Which of the following must be true in order for an offering to qualify as an intrastate offering under Rule
1 47?
A. all of the above are required
B. 80% of the corporation's revenue must be earned in that state
C. 80% of the proceeds of the offering must be used in that state
D. 80% of the corporation's assets must be located in that state
Question 5
Which of the following is not usually an additional function of a mutual fund's custodial bank?
A. dividend disbursing agent
B. registrar
C. transfer agent
D. investment advisor
Solutions:
| Question 1 Answer: C | Question 2 Answer: C | Question 3 Answer: A | Question 4 Answer: A | Question 5 Answer: D |
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