Chapter 3 Practice Questions
1. John is a representative who works for a bank dealer. Records of John’s correspondence with the public pertaining to municipal securities activities must be maintained for:
A. Six years
B. Three years
C. Two years
D. Six months
2. The opening of a customer account involving municipal securities must be reviewed and approved of by:
A. Only a Municipal Securities Representative
B. A Municipal Securities Principal or General Securities Principal
C. A Municipal Securities Sales Principal, Municipal Securities Principal, or General Securities Principal
D. A Municipal Securities Principal
3. Suitability information refers to:
A. Only information about a customer’s financial status
B. Information necessary to open a suitable customer account
C. Only information about a customer’s investment objectives
D. Information necessary to be able to recommend suitable transactions to a particular customer
4. When a customer makes a complaint to a municipal securities dealer, which of the following must occur?
A. A copy of an investor brochure must promptly be delivered to the customer
B. The customer’s complaint must be added to the dealer’s complaint record
C. The dealer must deliver all information related to any transactions it made for the customer to the customer
D. The dealer must promptly report the complaint to the MSRB
5. Municipal securities dealers are required to maintain records of customer complaints for:
A. Six years
B. Three years
C. Two years
D. Four years
6. Which of the following is a true statement about opening customer accounts?
A. Dealers must obtain all the required customer information before effecting any transactions in the account.
B. More information must be obtained for institutional accounts than other customer accounts.
C. A customer’s signature is not required on the new account form to open the account.
D.