Question 1

Which of the following activities by a limited partner may subject the partner to unlimited liability?

Options :

A : participating in management of the partnership

B : committing the partnership in any manner

C : making loans beyond those specified in the partnership agreement

D : all of the above

Answer: D

Question 2

Bubba is buying a treasury bill. The discount he receives results in Bubba’s determination of:

Options :

A : face value

B : nominal yield

C : rate of return

D : yield to call

Answer: C

Question 3

Securities may be sold under SEC rule 144 provided that the following conditions are met:

Options :

A : the company files regular financial data with the SEC

B : they are sold in agency transactions only

C : they are sold in principal transactions only

D : both A and B

Answer: A

Question 4

Under what circumstances may a municipal securities dealer guarantee a customer against loss in market value of bonds?

Options :

A : under no circumstances

B : only if the agreement is in writing

C : only if the bonds are rated AAA or Aaa

D : only if the bonds are insured

Answer: A

Question 5

Which of the following has the greatest risk?

Options :

A : a guaranteed corporate bond

B : a GNMA bond

C : a Series H bond

D : a treasury bill

Answer: A

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