Question 1

A broker-dealer (BD) creates a marketing postcard that includes a statement regarding FINRA's endorsement of the BD. Which of the following responses is true?

Options :

A : The statement regarding FINRA-s endorsement is not permissible.

B : The statement is permissible if a principal of the BD approves it in writing prior to use.

C : The statement is permissible if the statement is approved in writing by FINRA prior to use.

D : The statement is permissible if the postcard does not discuss specific investment opportunities.

Answer: A

Question 2

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 3

Assuming yields are held constant, which of the following statements describes what will occur as a discount bond reaches maturity?

Options :

A : Its price increases.

B : Its price decreases.

C : Its par value increases.

D : Its par value decreases.

Answer: A

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

At a prospecting event, a registered representative (RR) provides cards for attendees to write down their contact information if they want to have a follow-up meeting with her. Which of the following actions should the RR take in this situation to comply with telemarketing rules?

Options :

A : Obtain the broker-dealer-s approval before making a call

B : Limit contact with prospects to between 9 a.m. and 9 p.m.

C : Contact the prospects at will since they provided express written consent

D : Prior to contacting the prospects, check all of the names on the cards to make sure they are not on the National Do Not Call Registry

Answer: D

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