Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy Free Practice Questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Which of the following statement is true regarding selling group?
I. Selling group is a group of investment bankers that assists a syndicate or an underwriter in the sale of a new security issue
II. The group is not responsible for the unsold securities
III. The selling group receives higher fees than the underwriters group
IV. The selling group receives lower fees than underwritersCorrect
Rule no 0160. Definitions
The term “selling group” means any group formed in connection with a public offering, to distribute all or part of an issue of securities by sales made directly to the public by or through members of such selling group, under an agreement which imposes no financial commitment on the members of such group to purchase any such securities except as they may elect to do so.Incorrect
Rule no 0160. Definitions
The term “selling group” means any group formed in connection with a public offering, to distribute all or part of an issue of securities by sales made directly to the public by or through members of such selling group, under an agreement which imposes no financial commitment on the members of such group to purchase any such securities except as they may elect to do so. -
Question 2 of 10
2. Question
Which of the following statement is true about “Investment Advisers Act”?
I. Provides laws for roles and responsibilities of an investment adviser
II. The agency with whom advisers need to register depends mostly on the value of the assets they manage
III. Advisers who have at least $35 million in assets under management or provide advice to investment companies are required to register with the SEC
IV. The act provides the legal groundwork for monitoring those who advise pension funds, individuals and institutions on investing.Correct
Rule no 0160. Definitions
The term “Investment Advisers Act” means the Investment Advisers Act of 1940, as amended. The Investment Advisers Act of 1940 is a U.S. federal law that defines the role and responsibilities of an investment advisor/adviser. Prompted in part by a 1935 report to Congress on investment trusts and investment companies prepared by the Securities and Exchange Commission (SEC), the act provides the legal groundwork for monitoring those who advise pension funds, individuals and institutions on investing. It specifies what qualifies as investment advice and stipulates who must register with state and federal regulators in order to dispense it.Incorrect
Rule no 0160. Definitions
The term “Investment Advisers Act” means the Investment Advisers Act of 1940, as amended. The Investment Advisers Act of 1940 is a U.S. federal law that defines the role and responsibilities of an investment advisor/adviser. Prompted in part by a 1935 report to Congress on investment trusts and investment companies prepared by the Securities and Exchange Commission (SEC), the act provides the legal groundwork for monitoring those who advise pension funds, individuals and institutions on investing. It specifies what qualifies as investment advice and stipulates who must register with state and federal regulators in order to dispense it. -
Question 3 of 10
3. Question
Which of the following statement us true about “Investment Company Act”?
I. Provisions of the Investment Company Act of 1940 were created to establish and integrate a more stable financial market regulatory framework
II. This regulation is enforced by Investment Advisers Act of 1940
III. The Act has introduced industry standards, such as regular public disclosure of their investment policies.
IV. The Securities Exchange Commission (SEC) is authorized to regulate investment companies and oversee investment company registration.Correct
Rule no 0160. Definitions
The Investment Company Act of 1940 was created through an act of Congress to regulate the organization of investment companies and the activities they engage in. This act also set standards for the industry. This piece of legislation clearly defines the responsibilities and requirements of investment companies and the requirements for publicly traded investment product offerings, including open-end mutual funds, closed-end mutual funds, and unit investment trusts. It primarily targets publicly traded retail investment products.Incorrect
Rule no 0160. Definitions
The Investment Company Act of 1940 was created through an act of Congress to regulate the organization of investment companies and the activities they engage in. This act also set standards for the industry. This piece of legislation clearly defines the responsibilities and requirements of investment companies and the requirements for publicly traded investment product offerings, including open-end mutual funds, closed-end mutual funds, and unit investment trusts. It primarily targets publicly traded retail investment products. -
Question 4 of 10
4. Question
What does the word ‘covered investment pool’ means?
I. Any investment company registered under the Investment Advisers Act
II. Any investment company registered under the Investment Company Act
III. Any company that would be an investment company under Section 3(a) of the Investment Company Act
IV. Any investment company registered under Sarbanes Oxley ActCorrect
Rule no 2030. Engaging in Distribution and Solicitation Activities with Government Entities
“Covered investment pool” means:
(A) Any investment company registered under the Investment Company Act that is an investment option of a plan or program of a government entity; or
(B) Any company that would be an investment company under Section 3(a) of the Investment Company Act but for the exclusion provided from that definition by either Section 3(c)(1), 3(c)(7) or 3(c)(11) of that Act.Incorrect
Rule no 2030. Engaging in Distribution and Solicitation Activities with Government Entities
“Covered investment pool” means:
(A) Any investment company registered under the Investment Company Act that is an investment option of a plan or program of a government entity; or
(B) Any company that would be an investment company under Section 3(a) of the Investment Company Act but for the exclusion provided from that definition by either Section 3(c)(1), 3(c)(7) or 3(c)(11) of that Act. -
Question 5 of 10
5. Question
What is the prohibition on Soliciting and Coordinating Contributions?
I. no member is allowed to make contributions to a government entity
II. no member should make a payment to any political party
III. no member is allowed to make any sort of contribution on behalf of the investment adviser
IV. no member is allowed to make a payment to any educational institutionCorrect
Rule no 2030. Engaging in Distribution and Solicitation Activities with Government Entities
No covered member or covered associate may solicit or coordinate any person or political action committee to make any:
(1) Contribution to an official of a government entity in respect of which the covered member is engaging in, or seeking to engage in, distribution or solicitation activities on behalf of an investment adviser; or
(2) Payment to a political party of a state or locality of a government entity with which the covered member is engaging in, or seeking to engage in, distribution or solicitation activities on behalf of an investment adviser.Incorrect
Rule no 2030. Engaging in Distribution and Solicitation Activities with Government Entities
No covered member or covered associate may solicit or coordinate any person or political action committee to make any:
(1) Contribution to an official of a government entity in respect of which the covered member is engaging in, or seeking to engage in, distribution or solicitation activities on behalf of an investment adviser; or
(2) Payment to a political party of a state or locality of a government entity with which the covered member is engaging in, or seeking to engage in, distribution or solicitation activities on behalf of an investment adviser. -
Question 6 of 10
6. Question
Which of the following statement is/are true about the word “contribution”?
I. Any sort of acknowledgement, gift or loan for the purpose of influencing any election for federal, state or local office
II. Any sort of acknowledgement, gift or loan given to a person drowning in debts
III. Any sort of acknowledgement, gift or loan for payment of debt incurred in connection with any such election
IV. Any sort of acknowledgement, gift or loan transition or inaugural expenses of the successful candidate for state or local officeCorrect
Rule no 2030. Engaging in Distribution and Solicitation Activities with Government Entities
“Contribution” means any gift, subscription, loan, advance, or deposit of money or anything of value made for:
(A) The purpose of influencing any election for federal, state or local office;
(B) Payment of debt incurred in connection with any such election; or
(C) Transition or inaugural expenses of the successful candidate for state or local officeIncorrect
Rule no 2030. Engaging in Distribution and Solicitation Activities with Government Entities
“Contribution” means any gift, subscription, loan, advance, or deposit of money or anything of value made for:
(A) The purpose of influencing any election for federal, state or local office;
(B) Payment of debt incurred in connection with any such election; or
(C) Transition or inaugural expenses of the successful candidate for state or local office -
Question 7 of 10
7. Question
Money Laundering Compliance Act should be implemented with the requirement of which act?
Correct
Rule no 3310. Anti-Money Laundering Compliance Program
Each member shall develop and implement a written anti-money laundering program reasonably designed to achieve and monitor the member’s compliance with the requirements of the Bank Secrecy Act (31 U.S.C. 5311, et seq.), and the implementing regulations promulgated thereunder by the Department of the Treasury. Each member’s anti-money laundering program must be approved, in writing, by a member of senior management.Incorrect
Rule no 3310. Anti-Money Laundering Compliance Program
Each member shall develop and implement a written anti-money laundering program reasonably designed to achieve and monitor the member’s compliance with the requirements of the Bank Secrecy Act (31 U.S.C. 5311, et seq.), and the implementing regulations promulgated thereunder by the Department of the Treasury. Each member’s anti-money laundering program must be approved, in writing, by a member of senior management. -
Question 8 of 10
8. Question
Which of the following is/are true about fidelity bonds?
I. business insurance that offers an employer protection against losses
II. they can be either monetary or physical in terms of protection
III. fidelity bonds often provide protection caused by its employees’ dishonest actions
IV. these bonds are trade-able and can acquire interest just like regular bondsCorrect
Rule no 4360. Fidelity Bonds
A fidelity bond is a form of business insurance that offers an employer protection against losses – either monetary or physical – caused by its employees’ fraudulent or dishonest actions. Fidelity bonds are often held by insurance companies and brokerage firms, which are specifically required to carry protection proportional to their net capital. Among the possible forms of loss a fidelity bond covers include fraudulent trading, theft and forgery. In Australia, a fidelity bond is called “employee dishonesty insurance,” and in the U.K. it’s called “fidelity guarantee insurance.”Incorrect
Rule no 4360. Fidelity Bonds
A fidelity bond is a form of business insurance that offers an employer protection against losses – either monetary or physical – caused by its employees’ fraudulent or dishonest actions. Fidelity bonds are often held by insurance companies and brokerage firms, which are specifically required to carry protection proportional to their net capital. Among the possible forms of loss a fidelity bond covers include fraudulent trading, theft and forgery. In Australia, a fidelity bond is called “employee dishonesty insurance,” and in the U.K. it’s called “fidelity guarantee insurance.” -
Question 9 of 10
9. Question
Which of the following statement is/are true about “Anti Money Laundering Compliance Program”?
I. The program must establish and implement policies, procedures, and internal controls reasonably designed to achieve compliance with the Bank Secrecy Act
II. Include appropriate risk-based procedures for conducting ongoing customer due diligence
III. Establish and implement policies and procedures that can be reasonably expected to detect and cause the reporting of transactions required under the Sarbanes Oxley Act
IV. Conducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer informationCorrect
Rule no 3310. Anti-Money Laundering Compliance Program
The anti-money laundering programs required by this Rule shall, at a minimum,
(a) Establish and implement policies and procedures that can be reasonably expected to detect and cause the reporting of transactions required under 31 U.S.C. 5318(g) and the implementing regulations thereunder;
(b) Establish and implement policies, procedures, and internal controls reasonably designed to achieve compliance with the Bank Secrecy Act and the implementing regulations thereunder;
(c) Provide for annual (on a calendar-year basis) independent testing for compliance to be conducted by member personnel or by a qualified outside party, unless the member does not execute transactions for customers or otherwise hold customer accounts or act as an introducing broker with respect to customer accounts (e.g., engages solely in proprietary trading or conducts business only with other broker-dealers), in which case such “independent testing” is required every two years (on a calendar-year basis);(d) Designate and identify to FINRA (by name, title, mailing address, e-mail address, telephone number, and facsimile number) an individual or individuals responsible for implementing and monitoring the day-to-day operations and internal controls of the program (such individual or individuals must be an associated person of the member) and provide prompt notification to FINRA regarding any change in such designation(s);
(e) Provide ongoing training for appropriate personnelIncorrect
Rule no 3310. Anti-Money Laundering Compliance Program
The anti-money laundering programs required by this Rule shall, at a minimum,
(a) Establish and implement policies and procedures that can be reasonably expected to detect and cause the reporting of transactions required under 31 U.S.C. 5318(g) and the implementing regulations thereunder;
(b) Establish and implement policies, procedures, and internal controls reasonably designed to achieve compliance with the Bank Secrecy Act and the implementing regulations thereunder;
(c) Provide for annual (on a calendar-year basis) independent testing for compliance to be conducted by member personnel or by a qualified outside party, unless the member does not execute transactions for customers or otherwise hold customer accounts or act as an introducing broker with respect to customer accounts (e.g., engages solely in proprietary trading or conducts business only with other broker-dealers), in which case such “independent testing” is required every two years (on a calendar-year basis);(d) Designate and identify to FINRA (by name, title, mailing address, e-mail address, telephone number, and facsimile number) an individual or individuals responsible for implementing and monitoring the day-to-day operations and internal controls of the program (such individual or individuals must be an associated person of the member) and provide prompt notification to FINRA regarding any change in such designation(s);
(e) Provide ongoing training for appropriate personnel -
Question 10 of 10
10. Question
Which institutions come under “designated accounts”?
I. A bank
II. Educational institutions
III. An investment company
IV. An insurance companyCorrect
Rule no 4210. Margin Requirements
The term “designated account” means the account of:
(A) a bank (as defined in Section 3(a)(6) of the Exchange Act),
(B) a savings association (as defined in Section 3(b) of the Federal Deposit Insurance Act), the deposits of which are insured by the Federal Deposit Insurance Corporation,
(C) an insurance company (as defined in Section 2(a)(17) of the Investment Company Act),
(D) an investment company registered with the SEC under the Investment Company Act,
(E) a state or political subdivision thereof, or
(F) a pension or profit sharing plan subject to the Employee Retirement Income Security Act (ERISA) or of an agency of the United States or of a state or a political subdivision thereofIncorrect
Rule no 4210. Margin Requirements
The term “designated account” means the account of:
(A) a bank (as defined in Section 3(a)(6) of the Exchange Act),
(B) a savings association (as defined in Section 3(b) of the Federal Deposit Insurance Act), the deposits of which are insured by the Federal Deposit Insurance Corporation,
(C) an insurance company (as defined in Section 2(a)(17) of the Investment Company Act),
(D) an investment company registered with the SEC under the Investment Company Act,
(E) a state or political subdivision thereof, or
(F) a pension or profit sharing plan subject to the Employee Retirement Income Security Act (ERISA) or of an agency of the United States or of a state or a political subdivision thereof