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 categorized0%
1
2
3
4
5
6
7
8
9
10
Answered
Review
Question 1 of 10
1. Question
Which of the following statements is true regarding regulation 4.24 disclosure statements?
Correct
Regulation 4.24 disclosure statements
Regulation 4.24 of the Commodity Futures Trading Commission (CFTC) requires a commodity pool operator (CPO) to complete two types of disclosure statements. The two types of disclosure statements required from a CPO are as follows:
• Cautionary statement – This is a statement with specific language outlined in the CFTC regulations. The statement indicates that the CFTC makes no representation about the adequacy of the disclosure.
• Risk disclosure statement – This is a detailed statement with specific language outlined in the CFTC regulations. The statement concerns the inherent risks of futures transactions.
Incorrect
Regulation 4.24 disclosure statements
Regulation 4.24 of the Commodity Futures Trading Commission (CFTC) requires a commodity pool operator (CPO) to complete two types of disclosure statements. The two types of disclosure statements required from a CPO are as follows:
• Cautionary statement – This is a statement with specific language outlined in the CFTC regulations. The statement indicates that the CFTC makes no representation about the adequacy of the disclosure.
• Risk disclosure statement – This is a detailed statement with specific language outlined in the CFTC regulations. The statement concerns the inherent risks of futures transactions.
Question 2 of 10
2. Question
Regarding CFTC Regulation 4.24.h, which of the following statements is true?
Correct
CFTC Regulation 4.24.h
Commodity Futures Trading Commission (CFTC) Regulation 4.24.h requires disclosure of the commodity pool operator’s (CPO) investment program and the use of proceeds. Such disclosure includes the types of commodities that the pool will trade and the trading and investment programs and policies that will be followed. The CPO investment program disclosure must also include the following:
• the commodity trading advisors (CTAs) that will be employed and the nature and operation of the proposed trading program
• the amount of assets that will be held in segregation in order to fulfill the margin requirements of the pool
Incorrect
CFTC Regulation 4.24.h
Commodity Futures Trading Commission (CFTC) Regulation 4.24.h requires disclosure of the commodity pool operator’s (CPO) investment program and the use of proceeds. Such disclosure includes the types of commodities that the pool will trade and the trading and investment programs and policies that will be followed. The CPO investment program disclosure must also include the following:
• the commodity trading advisors (CTAs) that will be employed and the nature and operation of the proposed trading program
• the amount of assets that will be held in segregation in order to fulfill the margin requirements of the pool
Question 3 of 10
3. Question
From the statements below regarding CFTC Regulation 4.24.f, which one seems to be the most appropriate to you?
Correct
CFTC Regulation 4.24.f
Commodity Futures Trading Commission (CFTC) Regulation 4.24.f requires a five-year business background for certain commodity pool operator (CPO) principals, including each commodity trading advisor (CTA) and investee pool operator. In addition to each CTA and investee pool operator, the CPO must disclose:
• any pool trading manager
• operators of each major investee pool
• each and every principal who participates in the decision-making process or supervises those who do
Incorrect
CFTC Regulation 4.24.f
Commodity Futures Trading Commission (CFTC) Regulation 4.24.f requires a five-year business background for certain commodity pool operator (CPO) principals, including each commodity trading advisor (CTA) and investee pool operator. In addition to each CTA and investee pool operator, the CPO must disclose:
• any pool trading manager
• operators of each major investee pool
• each and every principal who participates in the decision-making process or supervises those who do
Question 4 of 10
4. Question
Which of the following statements is false regarding CFTC Regulation 4.24.j?
Correct
CFTC Regulation 4.24.j
Commodity Futures Trading Commission (CFTC) Regulation 4.24.j requires actual or perceived conflicts of interest on the part of certain principals of a commodity pool operator (CPO) to be disclosed. The principals that must be disclosed by the CPO include the following:
• commodity pool operators
• pool trading managers
• commodity trading advisors
• CPOs of any major investee pool
• any other persons providing services to the pool
Incorrect
CFTC Regulation 4.24.j
Commodity Futures Trading Commission (CFTC) Regulation 4.24.j requires actual or perceived conflicts of interest on the part of certain principals of a commodity pool operator (CPO) to be disclosed. The principals that must be disclosed by the CPO include the following:
• commodity pool operators
• pool trading managers
• commodity trading advisors
• CPOs of any major investee pool
• any other persons providing services to the pool
Question 5 of 10
5. Question
Which of the following statements is true regarding CFTC Regulation 4.34.j?
Correct
CFTC Regulation 4.34.j
Commodity Futures Trading Commission (CFTC) Regulation 4.34.j regarding the disclosure of perceived conflicts of interest on the part of certain principals of commodity trading advisors (CTAs) is similar to the disclosure rules for commodity pool operators (CPOs). The following are the two principal roles not included in the CPO requirements:
• CPOs must disclose each CTA that is advising a pool.
• CTAs must disclose futures commission merchants (FCMs) and introducing brokers, as well as their supervisors
Incorrect
CFTC Regulation 4.34.j
Commodity Futures Trading Commission (CFTC) Regulation 4.34.j regarding the disclosure of perceived conflicts of interest on the part of certain principals of commodity trading advisors (CTAs) is similar to the disclosure rules for commodity pool operators (CPOs). The following are the two principal roles not included in the CPO requirements:
• CPOs must disclose each CTA that is advising a pool.
• CTAs must disclose futures commission merchants (FCMs) and introducing brokers, as well as their supervisors
Question 6 of 10
6. Question
Regarding CFTC Regulation 4.35, which of the following statements is true?
Correct
CFTC Regulation 4.35
The regulation requires that performance information be disclosed for the most recent five years before the current one, or for inception to present, whichever is the lesser time period. Information for the current year to date must also be provided. Commodity Futures Trading Commission (CFTC) Regulation 4.35 requires two types of disclosure statements from a commodity trading advisor (CTA). The disclosure statements required from a CTA are the same ones required from a commodity pool operator. They are described below:
• Cautionary statement – This is a statement with specific language outlined in the CFTC regulations. The statement indicates that the CFTC makes no representation about the adequacy of the disclosure.
• Risk disclosure statement – This is a detailed statement with specific language outlined in the CFTC regulations. The statement concerns the inherent risks of futures transactions.
Incorrect
CFTC Regulation 4.35
The regulation requires that performance information be disclosed for the most recent five years before the current one, or for inception to present, whichever is the lesser time period. Information for the current year to date must also be provided. Commodity Futures Trading Commission (CFTC) Regulation 4.35 requires two types of disclosure statements from a commodity trading advisor (CTA). The disclosure statements required from a CTA are the same ones required from a commodity pool operator. They are described below:
• Cautionary statement – This is a statement with specific language outlined in the CFTC regulations. The statement indicates that the CFTC makes no representation about the adequacy of the disclosure.
• Risk disclosure statement – This is a detailed statement with specific language outlined in the CFTC regulations. The statement concerns the inherent risks of futures transactions.
Question 7 of 10
7. Question
From the statements below regarding CFTC Regulation 4.35, which one seems to be inappropriate to you?
Correct
CFTC Regulation 4.35
The regulation requires that performance information be disclosed for the most recent five years before the current one, or for inception to present, whichever is the lesser time period. Information for the current year to date must also be provided. Commodity Futures Trading Commission (CFTC) Regulation 4.35 requires two types of disclosure statements from a commodity trading advisor (CTA). The disclosure statements required from a CTA are the same ones required from a commodity pool operator. They are described below:
• Cautionary statement – This is a statement with specific language outlined in the CFTC regulations. The statement indicates that the CFTC makes no representation about the adequacy of the disclosure.
• Risk disclosure statement – This is a detailed statement with specific language outlined in the CFTC regulations. The statement concerns the inherent risks of futures transactions.
Incorrect
CFTC Regulation 4.35
The regulation requires that performance information be disclosed for the most recent five years before the current one, or for inception to present, whichever is the lesser time period. Information for the current year to date must also be provided. Commodity Futures Trading Commission (CFTC) Regulation 4.35 requires two types of disclosure statements from a commodity trading advisor (CTA). The disclosure statements required from a CTA are the same ones required from a commodity pool operator. They are described below:
• Cautionary statement – This is a statement with specific language outlined in the CFTC regulations. The statement indicates that the CFTC makes no representation about the adequacy of the disclosure.
• Risk disclosure statement – This is a detailed statement with specific language outlined in the CFTC regulations. The statement concerns the inherent risks of futures transactions.
Question 8 of 10
8. Question
From the statements below regarding CFTC Regulation 4.34.f, which one seems to be the most appropriate to you?
Correct
CFTC Regulation 4.34.f
Any individual responsible for supervising a CTA must also provide a five-year business background. Supervisors include all individuals in the supervisory or reporting chain of command.
Incorrect
CFTC Regulation 4.34.f
Any individual responsible for supervising a CTA must also provide a five-year business background. Supervisors include all individuals in the supervisory or reporting chain of command.
Question 9 of 10
9. Question
Which of the following statements is false regarding alternative trades?
Correct
Alternative trades
Commodity pool operators (CPOs) and/or commodity trading advisors (CTAs) are required to maintain written records on transactions that can be classified as alternative trades. Alternative trades include the following two types of transactions:
• A block trade is a single, large volume transaction that is negotiated ex-pit (outside of an exchange), and then executed on the floor of an exchange. Such transactions are subject to review and cancellation at the discretion of the Commodity Futures Trading Commission (CFTC).
• A bunched order is a single order executed on behalf of multiple customers.
Incorrect
Alternative trades
Commodity pool operators (CPOs) and/or commodity trading advisors (CTAs) are required to maintain written records on transactions that can be classified as alternative trades. Alternative trades include the following two types of transactions:
• A block trade is a single, large volume transaction that is negotiated ex-pit (outside of an exchange), and then executed on the floor of an exchange. Such transactions are subject to review and cancellation at the discretion of the Commodity Futures Trading Commission (CFTC).
• A bunched order is a single order executed on behalf of multiple customers.
Question 10 of 10
10. Question
Regarding Rule 2-29 and related rules, which of the following statements is true?
Correct
Rule 2-29 and related rules
National Futures Association (NFA) Rule 2-29 regarding promotional materials is one of a number of such rules intended to codify the Commodity Exchange Act (CEA) requirement to “establish minimum standards governing the sales practices of its members” and other associated persons. It is intended to augment other related compliance rules. These other related rules are as follows:
• Rule 2-14 regulates the advertising of commodity pool operators (CPOs) and commodity trading advisors (CTAs).
• Rule 2-2 applies to all members and associated persons (AP). It is concerned with fraud and deceit, and essentially requires that high ethical standards related to customer relationships be met.
• Rule 2-4 also applies to all members and associated persons (AP). It is concerned with just and equitable principles of trade, and requires that high commercial honor standards be met.
Incorrect
Rule 2-29 and related rules
National Futures Association (NFA) Rule 2-29 regarding promotional materials is one of a number of such rules intended to codify the Commodity Exchange Act (CEA) requirement to “establish minimum standards governing the sales practices of its members” and other associated persons. It is intended to augment other related compliance rules. These other related rules are as follows:
• Rule 2-14 regulates the advertising of commodity pool operators (CPOs) and commodity trading advisors (CTAs).
• Rule 2-2 applies to all members and associated persons (AP). It is concerned with fraud and deceit, and essentially requires that high ethical standards related to customer relationships be met.
• Rule 2-4 also applies to all members and associated persons (AP). It is concerned with just and equitable principles of trade, and requires that high commercial honor standards be met.
Hi, Aiden here, co-founder of Certdemy. I hope you liked it and enjoy our service. We are a group of professional who has been in your position right now – taking exams.
You have already paid for the expensive exam registration fee and it makes no sense to pay for another exam prep tool just because you are working hard on your career for your family and future.
That is why we provide all the top-notch, premium practice questions which are normally charged at over USD200 per exam preparation tools to you completely for free.
But we need your help and I am not asking for a donation. It comes with a huge running cost to hire exam professionals to craft the questions, pay for the domain, hosting fee, and web maintenance.
If this is not much to ask for, can you spend 5 seconds of your time and share our service to your favorite forums, friends & colleagues so that they can also enjoy our service and help us keep this place running? Thanks so much in advance if you have already done so!
To your success,
Aiden D. Lucas We earn a commission for each qualified sales with no additional cost to you as amazon associate