Series 28: Chapter 4 Practice Question Answers

Chapter 4 Practice Question Answers

1. 1. Answer: A. Under SEC Rule 17a-3, blotters or other records of original entry must be posted no later than one business days following the trade date.
2. 2. Answer: B. Blotters must show the account for which each such transaction was effected, the name and amount of securities, the unit and aggregate purchase or sale price (if any), the trade date, and the name or other designation of the person from whom purchased or received or to whom sold or delivered. The settlement date, while often included in the blotter, is not required by the SEC.
3. 3. Answer: C. A broker-dealer must preserve records that relate to the terms and conditions of the opening and maintenance of an account for six years after the closing of the account.
4. 4. Answer: B. Ledgers reflecting monies borrowed and loaned must be prepared no later than two business days following the payable date.
5. 5. Answer: C. FINRA requires member firms to designate an associated person to be responsible for each general ledger bookkeeping account. This person should, at least monthly, determine that the account is current and accurate and complies with FINRA rules and federal securities