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Question 1 of 10
1. Question
Accounts can be registered under different categories, such as:
I. individual
II. Joint
III. Custodial
IV. DealersCorrect
Accounts can be registered under different categories, such as individual, joint, and custodial.
Incorrect
Accounts can be registered under different categories, such as individual, joint, and custodial.
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Question 2 of 10
2. Question
Customer making transfer between or among their own accounts or accounts with which they are closely associated are known as:
I. internal transfer
II. Transfer on death
III. Divorce transfers
IV. External transfersCorrect
Internal transfers are transfers which customers make with funds between or among their own accounts (or accounts with which they are closely associated).
Incorrect
Internal transfers are transfers which customers make with funds between or among their own accounts (or accounts with which they are closely associated).
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Question 3 of 10
3. Question
Following is the deliberate concealment of the source of illegally-obtained funds:
I. Specially Designated Nationals
II. Currency transaction reports
III. Money laundering
IV. Bank Secrecy ActCorrect
Money laundering is the deliberate concealment of the source of illegally-obtained funds, and due to its deception and harm, a number of regulations
Incorrect
Money laundering is the deliberate concealment of the source of illegally-obtained funds, and due to its deception and harm, a number of regulations
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Question 4 of 10
4. Question
Which of the following is made by financial institutions to the U.S detailing Information about suspicious individuals or transactions:
I. Currency transaction reports
II. Suspicious activity reports
III. Bank Secrecy Act
IV. Money launderingCorrect
Suspicious activity reports (SARs) are made by financial institutions to the U.S. Treasury Department (specifically, the Financial Crimes Enforcement Network, or Fin CEN), detailing information about suspicious individuals or transactions
Incorrect
Suspicious activity reports (SARs) are made by financial institutions to the U.S. Treasury Department (specifically, the Financial Crimes Enforcement Network, or Fin CEN), detailing information about suspicious individuals or transactions
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Question 5 of 10
5. Question
Bank Secrecy Act (BSA), passed in 1970, established responsibilities for:
I. U.S. Treasury
II. Federal government agencies
III. Financial institutions
IV. Economic and trade sanctionsCorrect
The Bank Secrecy Act (BSA), passed in 1970, established responsibilities for financial institutions to federal government agencies, requiring the institutions to maintain records for cash purchases of negotiable instruments, to file any such purchases totaling over $10,000, and to report any suspicious activity
Incorrect
The Bank Secrecy Act (BSA), passed in 1970, established responsibilities for financial institutions to federal government agencies, requiring the institutions to maintain records for cash purchases of negotiable instruments, to file any such purchases totaling over $10,000, and to report any suspicious activity
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Question 6 of 10
6. Question
OFAC has compiled a list of people or groups of people with whom U.S. citizens and institutions are prohibited from doing business are:
I. Specially Designated Nationals
II. Office of Foreign Asset Control
III. Currency transaction reports
IV. Bank Secrecy ActCorrect
The OFAC has compiled a list of Specially Designated Nationals (SDNs), that is, people or groups of people with whom U.S. citizens and institutions are prohibited from doing business.
Incorrect
The OFAC has compiled a list of Specially Designated Nationals (SDNs), that is, people or groups of people with whom U.S. citizens and institutions are prohibited from doing business.
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Question 7 of 10
7. Question
Brokerage firms will also have restrictions on what kind of accounts:
I. margin accounts
II. Stock market
III. Long and short margin accounts
IV. Short sale accountsCorrect
Brokerage firms will also have restrictions on what kind of accounts can be margin accounts, as well as what kind of securities can be purchased in margin accounts.
Incorrect
Brokerage firms will also have restrictions on what kind of accounts can be margin accounts, as well as what kind of securities can be purchased in margin accounts.
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Question 8 of 10
8. Question
There are two different courses of action either he can borrow money with which he will buy securities, or he can borrow securities directly which is following as:
I. long margin account
II. Short margin account
III. Short sale accounts
IV. Special memorandum accountsCorrect
In a margin account, a client can take two different courses of action: either he can borrow money with which he will buy securities, or he can borrow securities directly. The first type of margin account is a long margin account, and the second is a short margin account
Incorrect
In a margin account, a client can take two different courses of action: either he can borrow money with which he will buy securities, or he can borrow securities directly. The first type of margin account is a long margin account, and the second is a short margin account
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Question 9 of 10
9. Question
Which are the following is (are) true for long margin accounts?
I. the customer uses money lent to him by the broker
II. To purchase a security
III. Hoping to make a profit on the security
IV. Pay back the brokerCorrect
In a long margin account, the customer uses money lent to him by the broker, in addition to some of his money, to purchase a security (or set of securities), hoping to make a profit on the security, pay back the broker, and pocket the extra cash.
Incorrect
In a long margin account, the customer uses money lent to him by the broker, in addition to some of his money, to purchase a security (or set of securities), hoping to make a profit on the security, pay back the broker, and pocket the extra cash.
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Question 10 of 10
10. Question
In the following marginal account, customer will generally sell the security (or set of securities) he has just borrowed from the broker, hope for the price to decrease, purchase the security at a lower price:
I. long margin account
II. Short margin account
III. Portfolio margin accounts
IV. Day trading accountsCorrect
In a short margin account, the customer will generally sell the security (or set of securities) he has just borrowed from the broker, hope for the price to decrease, purchase the security at a lower price, and return the security to the broker while pocketing the extra cash.
Incorrect
In a short margin account, the customer will generally sell the security (or set of securities) he has just borrowed from the broker, hope for the price to decrease, purchase the security at a lower price, and return the security to the broker while pocketing the extra cash.