Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
certdemy 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
When shall a person whose association with a member has been terminated continue to be subject to the filing of a complaint prior to its termination, revocation, or cancellation?
Correct
A person whose association with a member has been terminated shall file a complaint before its termination, revocation, and cancellation within two years after the revocation or cancellation of the registration according to the Corporation Rules. He or she is no longer associated with any member of Corporation.
Incorrect
A person whose association with a member has been terminated shall file a complaint before its termination, revocation, and cancellation within two years after the revocation or cancellation of the registration according to the Corporation Rules. He or she is no longer associated with any member of Corporation.
-
Question 2 of 10
2. Question
When shall an unregistered person continue to be subject to the filing of a complaint prior to its termination, revocation, or cancellation?
Correct
The same rule for any person associated with a member is also applied for unregistered persons. A complaint shall also be filed within two years after the date in which the person ceased to be associated with the member. This is a rule under the Retention of Jurisdiction of FINRA.
Incorrect
The same rule for any person associated with a member is also applied for unregistered persons. A complaint shall also be filed within two years after the date in which the person ceased to be associated with the member. This is a rule under the Retention of Jurisdiction of FINRA.
-
Question 3 of 10
3. Question
What shall an application by any person for registration with the Corporation contain as prescribed by FINRA?
I. An agreement complying with the securities laws, rules, and regulations
II. Any information as to the roles of the broker or dealer
III. Any information regarding the previous registration in other companies
IV. Any reasonable information as required by the CorporationCorrect
An application shall contain an agreement to comply with the federal securities laws, rules, and regulations, and any reasonable information as required by the Corporation. This is under FINRA’s rule in the application for registration. A Corporation may not approve an application of a person who is not eligible to be an associated person after reviewing their application.
Incorrect
An application shall contain an agreement to comply with the federal securities laws, rules, and regulations, and any reasonable information as required by the Corporation. This is under FINRA’s rule in the application for registration. A Corporation may not approve an application of a person who is not eligible to be an associated person after reviewing their application.
-
Question 4 of 10
4. Question
Whose application for registration shall be approved by the Corporation?
I. Any person who is eligible to be an associated person with a member
II. Any person who is not eligible to be an associated person with a member
III. Any member who signed an agreement to comply with the laws, rules, and regulations of federal securities.
IV. Any person who signed an agreement regarding the roles of the broker or dealer.Correct
Any person who is eligible to be an associated person with a member and any application who signed the agreement to comply with laws, rules, and regulations of federal securities shall approve its application for registration by the Corporation. An application shall always be kept current by supplementary amendments as prescribed to the original application.
Incorrect
Any person who is eligible to be an associated person with a member and any application who signed the agreement to comply with laws, rules, and regulations of federal securities shall approve its application for registration by the Corporation. An application shall always be kept current by supplementary amendments as prescribed to the original application.
-
Question 5 of 10
5. Question
Which of the following are categories for registration of application in FINRA?
I. Principal Financial Officer
II. Compliance Officer
III. General Securities Principal
IV. Financial and Operations PrincipalCorrect
A Principal Financial Officer, Compliance Officer, General Securities Principal, and Financial and Operations Principal are the categories for registration under FINRA Rule 1220. Other categories include, but not limited to, Investment Banking Principal, Research Principal, Registered Options Principal, and Securities Trader Principal.
Incorrect
A Principal Financial Officer, Compliance Officer, General Securities Principal, and Financial and Operations Principal are the categories for registration under FINRA Rule 1220. Other categories include, but not limited to, Investment Banking Principal, Research Principal, Registered Options Principal, and Securities Trader Principal.
-
Question 6 of 10
6. Question
Which of the following statements are correct regarding the registration of a General Securities Representative and General Securities Principal?
Correct
If an applicant is registered with FINRA as General Securities Principal and General Securities Representative, he or she may be qualified to register as a Compliance Officer even without taking any additional qualifying examination. This rule only applies to registration prior to October 1, 2018.
Incorrect
If an applicant is registered with FINRA as General Securities Principal and General Securities Representative, he or she may be qualified to register as a Compliance Officer even without taking any additional qualifying examination. This rule only applies to registration prior to October 1, 2018.
-
Question 7 of 10
7. Question
What are the two methods in computing the net capital?
I. Basic method
II. Complex method
III. Alternative method
IV. Going-concern methodCorrect
In computing the net capital, there are two methods to be used. One method is the basic and the other one is the alternative. Separating the liquid and illiquid assets is a process in computing for a broker-dealer’s regulatory net capital.
Incorrect
In computing the net capital, there are two methods to be used. One method is the basic and the other one is the alternative. Separating the liquid and illiquid assets is a process in computing for a broker-dealer’s regulatory net capital.
-
Question 8 of 10
8. Question
What is the strategy of taking an offsetting investment position designed to protect a position in securities or commodities against price movements?
Correct
Hedging strategy used to offset an investment position to protect a position in securities or commodities against price movements. It is used typically in derivatives, options, and futures contracts. It is simply a strategy that uses financial instruments to offset any risks in price movements.
Incorrect
Hedging strategy used to offset an investment position to protect a position in securities or commodities against price movements. It is used typically in derivatives, options, and futures contracts. It is simply a strategy that uses financial instruments to offset any risks in price movements.
-
Question 9 of 10
9. Question
What are the risk characteristics of particular security as a basis of the haircut?
I. Credit risk
II. Price volatility
III. Market risk
IV. LiquidityCorrect
A haircut will be based on the risk characteristics such as market risk, price volatility, and liquidity of a security. These risks are reduced through the utilization of hedging securities. A haircut is like the safety margin of market fluctuations usually seen in liquidating securities and commodities positions.
Incorrect
A haircut will be based on the risk characteristics such as market risk, price volatility, and liquidity of a security. These risks are reduced through the utilization of hedging securities. A haircut is like the safety margin of market fluctuations usually seen in liquidating securities and commodities positions.
-
Question 10 of 10
10. Question
Which assets are added back to general accepted accounting principles equity?
I. Depreciation
II. Prepaid Rent
III. Fixed Assets
IV. GoodwillCorrect
Under the GAAP, assets to be added back on equity are goodwill, furniture, fixtures, buildings, prepaid rent and insurance, and the value of exchange memberships. Deferred income tax liabilities and accrued liabilities are also added back to GAAP equity.
Incorrect
Under the GAAP, assets to be added back on equity are goodwill, furniture, fixtures, buildings, prepaid rent and insurance, and the value of exchange memberships. Deferred income tax liabilities and accrued liabilities are also added back to GAAP equity.