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
Which of the following best describes government security?
Correct
The debt instruments of a sovereign government are government security. Government securities are sold on a daily basis to satisfy the needs of the government such as the operational and funding needs. In selling these, it may avoid hiking taxes and it cuts off spending for unnecessary things. This may help in providing an additional budget for the government on a specific project.
Incorrect
The debt instruments of a sovereign government are government security. Government securities are sold on a daily basis to satisfy the needs of the government such as the operational and funding needs. In selling these, it may avoid hiking taxes and it cuts off spending for unnecessary things. This may help in providing an additional budget for the government on a specific project.
-
Question 2 of 10
2. Question
How shall the borrowed amount be considered as if it is in possession or control under the NSCC’s Stock Borrow Program?
I. If the securities are used for short sale transactions.
II. No additional securities shall be made available at the same time for long free accounts.
III. The long valued position must be reduced into a short position.
IV. The long valued position must be converted into a long free position.Correct
For a long free position with the Stock Borrow Program of NSCC, the borrowed amount is considered as if it is in possession or control if the long valued position requires to be converted into a long free position. No additional securities shall also be made available at the same time for long free accounts that are owed by NSCC. A long free account may also be considered to be in possession or control for a period of 14 days from the establishment of a long free position.
Incorrect
For a long free position with the Stock Borrow Program of NSCC, the borrowed amount is considered as if it is in possession or control if the long valued position requires to be converted into a long free position. No additional securities shall also be made available at the same time for long free accounts that are owed by NSCC. A long free account may also be considered to be in possession or control for a period of 14 days from the establishment of a long free position.
-
Question 3 of 10
3. Question
Which of the following best describes a long free position?
Correct
A long free position is defined as purchasing of stocks, commodities, or currencies with an expectation for its value to rise in the future. It is also called as “simply long.” The opposite of a long position is a short position where the intention of the seller in selling the securities is to repurchase it later at a lower price.
Incorrect
A long free position is defined as purchasing of stocks, commodities, or currencies with an expectation for its value to rise in the future. It is also called as “simply long.” The opposite of a long position is a short position where the intention of the seller in selling the securities is to repurchase it later at a lower price.
-
Question 4 of 10
4. Question
Why does a credit union not considered as a good control location under the SEA Rule 15c3-3?
Correct
A credit union cannot be considered as a good control location because it does not meet the definition of a bank under the Securities Exchange Act of 1934. An entity may be considered a good control location if it is able to maintain exclusive control over customer securities.
Incorrect
A credit union cannot be considered as a good control location because it does not meet the definition of a bank under the Securities Exchange Act of 1934. An entity may be considered a good control location if it is able to maintain exclusive control over customer securities.
-
Question 5 of 10
5. Question
Which of the following best describes a money market fund?
I. It is composed of all fixed-income instruments.
II. It is composed of short-term fixed-income instruments.
III. Its objective is stability plus reasonable growth.
IV. Its objective is stability plus minimal growth only.Correct
A money market fund is composed of short-term fixed-income instruments only. Its objective is stability plus minimal growth. A money market fund invests only liquid instruments such as cash, cash equivalent, and high credit rating debt-based securities with short-term maturity. Its level of risk is very low due to its high liquidity.
Incorrect
A money market fund is composed of short-term fixed-income instruments only. Its objective is stability plus minimal growth. A money market fund invests only liquid instruments such as cash, cash equivalent, and high credit rating debt-based securities with short-term maturity. Its level of risk is very low due to its high liquidity.
-
Question 6 of 10
6. Question
Which of the following is not a definition of a money market fund?
Correct
The money market fund’s vehicle has a high credit quality with liquid short-term investments. It only invests with low-risk vehicles such as treasury bills, certificates of deposits, and short-term commercial paper. It is generally considered a safe investment among all other funds.
Incorrect
The money market fund’s vehicle has a high credit quality with liquid short-term investments. It only invests with low-risk vehicles such as treasury bills, certificates of deposits, and short-term commercial paper. It is generally considered a safe investment among all other funds.
-
Question 7 of 10
7. Question
Which kind of partners may enter into a limited partnership?
Correct
A limited partnership must consist of one or more general partners and one or more limited partners. A partnership may not form a limited partnership which consists of limited partners only. A general partner is needed in a limited partnership in order to pay for the liabilities of a limited partner in case of insolvency.
Incorrect
A limited partnership must consist of one or more general partners and one or more limited partners. A partnership may not form a limited partnership which consists of limited partners only. A general partner is needed in a limited partnership in order to pay for the liabilities of a limited partner in case of insolvency.
-
Question 8 of 10
8. Question
For limited partnership units, which conditions must be met if no certificates were issued in order to treat the general partner as a good control location?
I. If the limited partnership was registered with the SEC.
II. If the broker-dealer carries the investment “long” in customers’ accounts
III. If the broker-dealer is aware of any substantial problems of an operational nature which the partnership endangers the interests of a customer.
IV. If some securities positions are reflected separately in the records and ledgers.Correct
If no certificates were issued in limited partnership units, it may be treated as a good control location provided that the limited partnership is registered with the Commission and it carries the investment “long” in customers’ accounts. All securities positions must be reflected in records or ledgers. A broker-dealer must also not be aware of future substantial problems in operating activities that endangers the interests of a customer.
Incorrect
If no certificates were issued in limited partnership units, it may be treated as a good control location provided that the limited partnership is registered with the Commission and it carries the investment “long” in customers’ accounts. All securities positions must be reflected in records or ledgers. A broker-dealer must also not be aware of future substantial problems in operating activities that endangers the interests of a customer.
-
Question 9 of 10
9. Question
Which of the following best describes an omnibus account?
Correct
An omnibus account consists of aggregate and large accounts as combined. It is arranged by brokers or dealers for different investors’ accounts. It is mostly used by brokerage firms to make a single account together with the client’s accounts at a second firm. If an account is used by a futures commission merchant, it is a fully disclosed account rather than an omnibus account.
Incorrect
An omnibus account consists of aggregate and large accounts as combined. It is arranged by brokers or dealers for different investors’ accounts. It is mostly used by brokerage firms to make a single account together with the client’s accounts at a second firm. If an account is used by a futures commission merchant, it is a fully disclosed account rather than an omnibus account.
-
Question 10 of 10
10. Question
For transfer of customer accounts, where must the books and records of the receiving broker-dealer be reflected for customer securities?
Correct
The books and records of the receiving broker-dealer for customer securities must be reflected on an omnibus account of the delivering broker-dealer. Under the SEA Rule 15c3-3, the receiving broker-dealer shall assume all responsibilities in clearing the transactions of the accounts of customers to be transferred.
Incorrect
The books and records of the receiving broker-dealer for customer securities must be reflected on an omnibus account of the delivering broker-dealer. Under the SEA Rule 15c3-3, the receiving broker-dealer shall assume all responsibilities in clearing the transactions of the accounts of customers to be transferred.