Question 1

A registered representative (RR) at a member firm is the subject of a statutory disqualification. Which of the following statements is true?

Options :

A : The RR is prohibited from soliciting business but is permitted to accept unsolicited orders.

B : The RR is prohibited from any association or employment with a member firm unless he obtains a waiver.

C : The RR is prohibited from employment by a member firm in any registered capacity but is permitted to be employed in an unregistered capacity.

Answer: B

Question 2

Which of the following rates is the interest rate at which banks borrow and lend to each other on an overnight basis?

Options :

A : Prime rate

B : Discount rate

C : Federal funds ratec

D : LIBOR

Answer: C

Question 3

Executing trades using the delivery versus payment (DVP) settlement process requires the buyer to make a cash payment by which of the following deadlines?

Options :

A : On the 5th business day after execution

B : Before or at the same time as securities being delivered

C : No later than 3 days after the securities are delivered

D : By the agreed-upon settlement date with the issuer

Answer: B

Question 4

A registered representative who is terminated from a broker-dealer must notify FINRA of a residential address change for what period of time after termination?

Options :

A : One year

B : Two years

C : Three years

D : Six years

Answer: B

Question 5

Which of the following statements is true regarding 529 savings plans?

Options :

A : 529 contributions are tax deductible in all states

B : There are income limitations for contributing to a 529 savings plan.

C : The account beneficiary has control over the assets in a 529 savings plan.

D : Assets are transferable to another 529 savings plan tax-free if the new beneficiary is a family member of the current beneficiary.

Answer: D

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