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Question 1 of 10
1. Question
Which of the following must be done by the President in nominating persons as Commissioners?
I. He shall select persons with knowledge in production, merchandising, processing, or distribution of commodities.
II. He shall select persons who have knowledge in futures trading or its regulation.
III. He shall seek to ensure that their knowledge is balanced with respect to such areas.
IV. He shall select persons with pending civil sanctions due to previous actions.Correct
In nominating persons for appointment as Commissioners, the President shall seek persons who have knowledge in futures trading or its regulation. It shall also have knowledge in production, merchandising, processing, or distribution of commodities, services, rights, and interests. He shall also ensure that these knowledge is balanced with respect to such areas.
Incorrect
In nominating persons for appointment as Commissioners, the President shall seek persons who have knowledge in futures trading or its regulation. It shall also have knowledge in production, merchandising, processing, or distribution of commodities, services, rights, and interests. He shall also ensure that these knowledge is balanced with respect to such areas.
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Question 2 of 10
2. Question
Which of the following is correct in relation to the terms of a Commissioner under the Commodity Exchange Act?
Correct
Not more than three of the member of the Commission shall be part of the same political party as stated in the Commodity Exchange Act of the CFTC. A Commissioner shall wait for the appointment of his successor after holding office for a term of five years, except that he shall not continue to serve beyond his term’s expiration.
Incorrect
Not more than three of the member of the Commission shall be part of the same political party as stated in the Commodity Exchange Act of the CFTC. A Commissioner shall wait for the appointment of his successor after holding office for a term of five years, except that he shall not continue to serve beyond his term’s expiration.
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Question 3 of 10
3. Question
What is the role of an Executive Director in the Commission?
I. To assist the Department of Justice in handling litigations
II. To serve the pleasure of the Commission
III. To directly report to the Commission
IV. To perform duties and functions as prescribed by the CommissionCorrect
To serve the pleasure of the Commission is an Executive Director in the Commission. He or she is appointed by the Commission to send reports regularly. He is also expected to perform functions and duties which is prescribed by the Commission. On the other hand, a General Counsel’s role is to serve as the Commission’s legal advisor.
Incorrect
To serve the pleasure of the Commission is an Executive Director in the Commission. He or she is appointed by the Commission to send reports regularly. He is also expected to perform functions and duties which is prescribed by the Commission. On the other hand, a General Counsel’s role is to serve as the Commission’s legal advisor.
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Question 4 of 10
4. Question
What are the purposes of appointing an attorney in the opinion of the Commission?
I. To assist the Executive Director
II. To represent the Commission in courts of law
III. To assist the Department of Justice in handling litigations
IV. To perform legal duties and functions under the Commission’s directionCorrect
An attorney is appointed, in the opinion of the Commission, to assist the General Counsel in representing the Commission in courts of law. They also assist the Department of Justice in handling litigation concerns as they perform their legal duties and functions as directed by the Commission. They shall serve at the pleasure of the Commission.
Incorrect
An attorney is appointed, in the opinion of the Commission, to assist the General Counsel in representing the Commission in courts of law. They also assist the Department of Justice in handling litigation concerns as they perform their legal duties and functions as directed by the Commission. They shall serve at the pleasure of the Commission.
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Question 5 of 10
5. Question
Under the Commodity Exchange Act, what shall the Chairman be governed by?
I. By the general policies as determined by the Commission
II. By regulatory decisions and findings as determined by the Commission
III. By the plans and priorities as determined by the Commission
IV. By the rules and regulations implemented by the ConstitutionCorrect
The Chairman is governed by the policies, plans, priorities, and budgets that the Commission has approved. It is also governed by the regulatory decisions, findings, and determination of the Commission. The appointment by Chairman under the Commission shall be subject to Commission’s approval.
Incorrect
The Chairman is governed by the policies, plans, priorities, and budgets that the Commission has approved. It is also governed by the regulatory decisions, findings, and determination of the Commission. The appointment by Chairman under the Commission shall be subject to Commission’s approval.
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Question 6 of 10
6. Question
Which of the following is within the definition of a “financial entity” under the Commodity Exchange Act?
I. It is a public fund.
II. It is a swap dealer.
III. It is a security-based swap dealer.
IV. It is a commodity pool.Correct
A swap dealer, security-based swap dealer, and commodity pool are within the definition of the term “financial entity” as defined in the Commodity Exchange Act. This also refers to private funds, major swap participants, major security-based swap participants, and an employee benefit plan.
Incorrect
A swap dealer, security-based swap dealer, and commodity pool are within the definition of the term “financial entity” as defined in the Commodity Exchange Act. This also refers to private funds, major swap participants, major security-based swap participants, and an employee benefit plan.
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Question 7 of 10
7. Question
Which of the following exemptions in banks or other financial institutions are considered by the Commission?
I. A farm credit system institution with total assets of $10,000,000,000 or more.
II. A credit union with total assets of $10,000,000,000 or more.
III. A farm credit system institution with total assets of $10,000,000,000 or less.
IV. A credit union with total assets of $10,000,000,000 or less.Correct
If a farm credit system institutions, depository institutions, and credit unions have total assets of less than $10,000,000,000, then the Commission shall consider its exemption in the Jurisdiction of Commission of Commodity Exchange Act. However, entities whose primary business is to provide financing are within the limitation of the Act.
Incorrect
If a farm credit system institutions, depository institutions, and credit unions have total assets of less than $10,000,000,000, then the Commission shall consider its exemption in the Jurisdiction of Commission of Commodity Exchange Act. However, entities whose primary business is to provide financing are within the limitation of the Act.
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Question 8 of 10
8. Question
Which of the following are the prescribed appropriate requirements of rules and regulations under the Jurisdiction of Commission of Commodity Exchange Act?
I. Capital and margin requirements
II. Disclosure requirements
III. Recordkeeping requirements
IV. Written and signed agreementsCorrect
Disclosure, recordkeeping, and capital and margin requirements are the prescribed appropriate requirements under the Jurisdiction of Commission of Commodity Exchange Act. Other requirements are the reporting, documentation, business conduct, and requirements determined by the Federal regulatory agency.
Incorrect
Disclosure, recordkeeping, and capital and margin requirements are the prescribed appropriate requirements under the Jurisdiction of Commission of Commodity Exchange Act. Other requirements are the reporting, documentation, business conduct, and requirements determined by the Federal regulatory agency.
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Question 9 of 10
9. Question
Which of the following is not a “Federal Regulatory Agency”?
Correct
The Securities and Exchange Commission, the National Credit Union Association, and the Farm Credit Administration are Federal Regulatory Agencies. These are the agencies or government departments that have great responsibilities in legislating acts and regulations for a given sector of the government of the United States.
Incorrect
The Securities and Exchange Commission, the National Credit Union Association, and the Farm Credit Administration are Federal Regulatory Agencies. These are the agencies or government departments that have great responsibilities in legislating acts and regulations for a given sector of the government of the United States.
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Question 10 of 10
10. Question
Under the Jurisdiction of the Commission, which of the following is an eligible commercial entity?
Correct
Ana agricultural producer, packer, or handler is considered to be an eligible commercial entity for commodity transactions in line with its business. An eligible commercial entity is defined as an eligible contract participant which has a demonstrable ability to make or take delivery of the underlying commodity.
Incorrect
Ana agricultural producer, packer, or handler is considered to be an eligible commercial entity for commodity transactions in line with its business. An eligible commercial entity is defined as an eligible contract participant which has a demonstrable ability to make or take delivery of the underlying commodity.