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 are common conflicts involving the pool?
I. If the CPO rejects a close business relationship with a federal-state regulator
II. If the CPO receives per-trade compensation
III. If the CPO is an associated person of the Futures Commission Merchant that the pool uses
IV. If the CPO receives office space or other soft dollar benefits from a Futures Commission MerchantCorrect
If the major CTA or the CPO receives per-trade compensation, is an AP of the FCM/RFED that the pool uses, or receives office space or other soft dollar benefits from an FCM, RFED, or IB, then it shall be disclosed in the document. It shall disclose that there is an incentive to overtrade to increase the compensation and that the arrangement may dispose of them to trade more actively.
Incorrect
If the major CTA or the CPO receives per-trade compensation, is an AP of the FCM/RFED that the pool uses, or receives office space or other soft dollar benefits from an FCM, RFED, or IB, then it shall be disclosed in the document. It shall disclose that there is an incentive to overtrade to increase the compensation and that the arrangement may dispose of them to trade more actively.
-
Question 2 of 10
2. Question
Which of the following need not be disclosed regarding litigations?
Correct
The concluded action that resulted in adjudication on the merits in favor of such a person need not be disclosed. However, any material administrative, civil or criminal action, whether pending or concluded, shall be disclosed in the document against the CPO, the pool’s trading manager, the principal, the pool’s FCM, RFED, swap dealers, and the operators of the pool’s major investee pools.
Incorrect
The concluded action that resulted in adjudication on the merits in favor of such a person need not be disclosed. However, any material administrative, civil or criminal action, whether pending or concluded, shall be disclosed in the document against the CPO, the pool’s trading manager, the principal, the pool’s FCM, RFED, swap dealers, and the operators of the pool’s major investee pools.
-
Question 3 of 10
3. Question
With respect to a Futures Commission Merchant, which of the following is not considered a material action?
Correct
An action is considered a material with respect to FCM, RED, and/or swap dealer, or an IB if it would be required to be disclosed in the notes to financial statements pursuant to generally accepted accounting principles. If a matter is a material, it shall include the recital of the nature of the action in its description.
Incorrect
An action is considered a material with respect to FCM, RED, and/or swap dealer, or an IB if it would be required to be disclosed in the notes to financial statements pursuant to generally accepted accounting principles. If a matter is a material, it shall include the recital of the nature of the action in its description.
-
Question 4 of 10
4. Question
Which of the following best describes principal-protected pools or guaranteed pools?
Correct
The principal-protected pools or guaranteed pools are designed to limit the loss of the initial investment of participants. The fact that the pool is a principal-protected pool must be stated in the forepart of the document. It shall also describe in the document the nature of the principal protection feature.
Incorrect
The principal-protected pools or guaranteed pools are designed to limit the loss of the initial investment of participants. The fact that the pool is a principal-protected pool must be stated in the forepart of the document. It shall also describe in the document the nature of the principal protection feature.
-
Question 5 of 10
5. Question
Which of the following descriptions must be specified in the document regarding transferability and redemption?
Correct
In a document, a complete description of any restrictions upon the transferability of a participant’s interest in the pool shall be included. The descriptions must specify how the redemption value of a participant’s interest will be calculated, the conditions under which a participant may redeem its interest, the terms of any notification required, restrictions on the redemption of interest, and any liquidity risk relative to the pool’s redemption capabilities.
Incorrect
In a document, a complete description of any restrictions upon the transferability of a participant’s interest in the pool shall be included. The descriptions must specify how the redemption value of a participant’s interest will be calculated, the conditions under which a participant may redeem its interest, the terms of any notification required, restrictions on the redemption of interest, and any liquidity risk relative to the pool’s redemption capabilities.
-
Question 6 of 10
6. Question
Which of the following information shall be disclosed in a document regarding the distribution of profits and taxation?
Correct
With respect to payment of distributions from profits, or capital and the frequency of such payments, the document must disclose its pool’s policies. It shall also disclose the federal income tax effects of such payments for a participant. It must also include the discussion of the federal income tax laws applicable to the form of organization of the pool and to payments from the pool.
Incorrect
With respect to payment of distributions from profits, or capital and the frequency of such payments, the document must disclose its pool’s policies. It shall also disclose the federal income tax effects of such payments for a participant. It must also include the discussion of the federal income tax laws applicable to the form of organization of the pool and to payments from the pool.
-
Question 7 of 10
7. Question
Which of the following statements of account shall be provided to all participants by the CPO?
Correct
The CPO is required to provide all participants with either monthly or quarterly statements of account as well as a certified annual report. Account statements must be distributed at least monthly if the net assets of the pool are more than $500,000 at the beginning of the pool’s fiscal year, otherwise at least quarterly.
Incorrect
The CPO is required to provide all participants with either monthly or quarterly statements of account as well as a certified annual report. Account statements must be distributed at least monthly if the net assets of the pool are more than $500,000 at the beginning of the pool’s fiscal year, otherwise at least quarterly.
-
Question 8 of 10
8. Question
What must be determined by any member or any person associated with a member in exercising diligence in opening a security futures account?
I. The principal’s financial condition
II. The principal’s investment objectives
III. Essential facts relative to the customer
IV. Customer’s financial situationCorrect
When opening an account of a customer for security futures trading, a member or any member related to a member must exercise due diligence in ascertaining the essential facts that are related to a customer. A member must also determine the current financial situation and investment objectives of a customer. Lastly, the exact minimum net equity requirements for approval and the security futures accounts of customers shall be established and maintained by the members, respectively.
Incorrect
When opening an account of a customer for security futures trading, a member or any member related to a member must exercise due diligence in ascertaining the essential facts that are related to a customer. A member must also determine the current financial situation and investment objectives of a customer. Lastly, the exact minimum net equity requirements for approval and the security futures accounts of customers shall be established and maintained by the members, respectively.
-
Question 9 of 10
9. Question
Under the diligence in opening a security futures account, who of the following is qualified to supervise security futures activities?
Correct
When opening a security futures account, the qualified person to oversee security futures activities is the principal. They specifically have a role to agree or disagree in writing the account for the security futures trading of a customer. Reasons for approval shall also be contained within the written record in the account approvals.
Incorrect
When opening a security futures account, the qualified person to oversee security futures activities is the principal. They specifically have a role to agree or disagree in writing the account for the security futures trading of a customer. Reasons for approval shall also be contained within the written record in the account approvals.
-
Question 10 of 10
10. Question
Under the Security Futures, how many times that the statements of account shall be sent to each customer?
Correct
Under the Security Futures one that must be done is to send statements of account to customers. Security and money positions, entries, interest charges, and any special charges must be shown in the statements of account. The period covered by the statements must be sent no less frequently than once every month to customers whose account with respect to the security futures contract during the preceding month and quarterly to customers that have a money balance.
Incorrect
Under the Security Futures one that must be done is to send statements of account to customers. Security and money positions, entries, interest charges, and any special charges must be shown in the statements of account. The period covered by the statements must be sent no less frequently than once every month to customers whose account with respect to the security futures contract during the preceding month and quarterly to customers that have a money balance.