SIE: Chapter 8 Practice Questions

Chapter 8 Practice Questions

1. 1. A client account form must be sent to the client within 30 days of opening a new client account. The client account form must include all of the following except:
2. A. The client’s date of birth
3. B. The client’s net worth
4. C. The client’s educational background
5. D. The name of the representative in charge of the client’s account
6. 2. William and Ruth share a joint tenants in common brokerage account. This account has all the following characteristics except:
7. A. The certificates of securities sold from the account must be signed by both parties.
8. B. The account can only be closed by both parties.
9. C. Both owners have equal rights to the account’s assets.
10. D. Either party can trade in the account without getting explicit written permission from the other party.
11. 3. Under a Uniform Transfer to Minors account, assets must be transferred to the minor no later than age:
12. A. 18
13. B. Depends on the state
14. C. 21
15. D. 30
16. 4. Once a prospective client fills out a new client account form, the broker-dealer must independently verify the identity of the client. The requirements of the USA PATRIOT Act allow financial institutions to verify the identity of its individual or institutional clients by any of the following means except:
17. A. Examining a current passport
18. B. Examining a Social Security card
19. C. Examining a government-issued business license
20. D. Examining an alien registration card
21. 5. After learning of the death of a client, a broker-dealer must:
22. A. Immediately freeze the client’s assets
23. B. Write a letter testamentary to the client’s estate
24. C. Cancel all open orders once a copy of the death certificate is received
25. D. Notify immediate family members
26. 6. A joint brokerage account owned by two unmarried persons, and in which the death of one o