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Question 1 of 10
1. Question
Which of the following are the following exception of the rule?
I. Offsetting “Long” and “Short” Positions
II. Exempted Securities, Non-equity Securities and Baskets
III. Joint Accounts in Which the Carrying Member or a Partner or Stockholder Therein Has an Interest
IV. International Arbitrage AccountsCorrect
According to FINRA rule 4210, the following are the following exception of the rule:
(a) Offsetting “Long” and “Short” Positions
(b) Exempted Securities, Non-equity Securities and Baskets
(c) Joint Accounts in Which the Carrying Member or a Partner or Stockholder Therein Has an Interest
(d) International Arbitrage AccountsIncorrect
According to FINRA rule 4210, the following are the following exception of the rule:
(a) Offsetting “Long” and “Short” Positions
(b) Exempted Securities, Non-equity Securities and Baskets
(c) Joint Accounts in Which the Carrying Member or a Partner or Stockholder Therein Has an Interest
(d) International Arbitrage Accounts -
Question 2 of 10
2. Question
Which of the following is correct in any “long” or “short” positions in non-equity securities?
I. 10 percent of the current market value in the case of investment grade debt securities; and
II. 20 percent of the current market value
III. 7 percent of the principal amount, whichever amount is greater, in the case of all other listed non-equity securities, and all other margin eligible non-equity securities
IV. II. 50 percent of the current market valueCorrect
According to FINRA rule 4210, On any “long” or “short” positions in non-equity securities, the margin to be maintained shall be:
(a)10 percent of the current market value in the case of investment grade debt securities
(b) 20 percent of the current market value
(c) 7 percent of the principal amount, whichever amount is greater, in the case of all other listed non-equity securities, and all other margin eligible non-equity securitiesIncorrect
According to FINRA rule 4210, On any “long” or “short” positions in non-equity securities, the margin to be maintained shall be:
(a)10 percent of the current market value in the case of investment grade debt securities
(b) 20 percent of the current market value
(c) 7 percent of the principal amount, whichever amount is greater, in the case of all other listed non-equity securities, and all other margin eligible non-equity securities -
Question 3 of 10
3. Question
Which of the following requirement must imposed under FINRA rule 4210 in transactions with exempt accounts involving highly rated foreign sovereign debt securities and investment-grade debt securities?
I. 0.5 percent of current market value in the case of highly-rated foreign sovereign debt securities
II. 3 percent of current market value in the case of all other investment-grade debt securities
III. 1 percent of current market value in the case of highly-rated foreign sovereign debt securities
IV. 30 percent of current market value in the case of all other investment-grade debt securitiesCorrect
The following requirement must impose under FINRA rule 4210 in transactions with exempt accounts involving highly rated foreign sovereign debt securities and investment-grade debt securities:
(a) 0.5 percent of current market value in the case of highly-rated foreign sovereign debt securities
(b) 3 percent of current market value in the case of all other investment-grade debt securitiesIncorrect
The following requirement must impose under FINRA rule 4210 in transactions with exempt accounts involving highly rated foreign sovereign debt securities and investment-grade debt securities:
(a) 0.5 percent of current market value in the case of highly-rated foreign sovereign debt securities
(b) 3 percent of current market value in the case of all other investment-grade debt securities -
Question 4 of 10
4. Question
Which of the following requirements need in Limits on Net Capital Deductions for Exempt Accounts?
I. On any one account or group of commonly controlled accounts, 5 percent of the member’s tentative net capital (as such term is defined in SEA Rule 15c3-1)
II. On all accounts combined, 25 percent of the member’s tentative net capital (as such term is defined in SEA Rule 15c3-1)
III. On one account combined, 25 percent of the member’s tentative net capital (as such term is defined in SEA Rule 15c3-1)
IV. On all accounts or group of commonly controlled accounts, 5 percent of the member’s tentative net capital (as such term is defined in SEA Rule 15c3-1)Correct
According to FINRA rule, the following requirements need in Limits on Net Capital Deductions for Exempt Accounts?
(a) On any one account or group of commonly controlled accounts, 5 percent of the member’s tentative net capital (as such term is defined in SEA Rule 15c3-1)
(b) On all accounts combined, 25 percent of the member’s tentative net capital (as such term is defined in SEA Rule 15c3-1)Incorrect
According to FINRA rule, the following requirements need in Limits on Net Capital Deductions for Exempt Accounts?
(a) On any one account or group of commonly controlled accounts, 5 percent of the member’s tentative net capital (as such term is defined in SEA Rule 15c3-1)
(b) On all accounts combined, 25 percent of the member’s tentative net capital (as such term is defined in SEA Rule 15c3-1) -
Question 5 of 10
5. Question
Which of the following are the list included for the exemption application?
I. Complete description of the security
II. Cost price, offering price and principal amount of obligations
III. Date on which the security is to be purchased
IV. AssetsCorrect
According to FINRA Rule 4210, the following are the list included for the exemption application:
(a) Complete description of the security
(b) Cost price, offering price and principal amount of obligations
(c) Date on which the security is to be purchasedIncorrect
According to FINRA Rule 4210, the following are the list included for the exemption application:
(a) Complete description of the security
(b) Cost price, offering price and principal amount of obligations
(c) Date on which the security is to be purchased -
Question 6 of 10
6. Question
Who is assigned in the risk limit determination in accordance with the member’s written risk policies and procedures?
Correct
According to FINRA rule 4210 the risk limit determination in accordance with the member’s written risk policies and procedures shall be made by a designated credit risk officer or credit risk committee. Not the Police officer, bank manager and registered member.
Incorrect
According to FINRA rule 4210 the risk limit determination in accordance with the member’s written risk policies and procedures shall be made by a designated credit risk officer or credit risk committee. Not the Police officer, bank manager and registered member.
-
Question 7 of 10
7. Question
Which of the following are not subjected to the rule 4210 Margin Requirements?
I. International arbitrage accounts for non-member foreign brokers
II. Local account brokers
III. Dealers who are members of a foreign securities exchange
IV. Stockmarket holdersCorrect
According to FINRA Rule 4210, the following are not subjected to the rule 4210 Margin Requirements:
(a) International arbitrage accounts for non-member foreign brokers
(b) Dealers who are members of a foreign securities exchangeIncorrect
According to FINRA Rule 4210, the following are not subjected to the rule 4210 Margin Requirements:
(a) International arbitrage accounts for non-member foreign brokers
(b) Dealers who are members of a foreign securities exchange -
Question 8 of 10
8. Question
Which of the following requirements in the event that a carrying and clearing, or a carrying member’s tentative net capital?
I. Promptly notify FINRA in writing of such deficiency
II. Take appropriate action to resolve such deficiency within three consecutive business days
III. Not permit any new transactions to be entered into pursuant to the JBO arrangement
IV. Permit any new transactions to be entered into pursuant to the JBO arrangementCorrect
According to FINRA rule 4210 the following arethe requirement for the event that a carrying and clearing, or a carrying member’s tentative net capital:
(a) Promptly notify FINRA in writing of such deficiency
(b) Take appropriate action to resolve such deficiency within three consecutive business days
(c) Not permit any new transactions to be entered into pursuant to the JBO arrangementIncorrect
According to FINRA rule 4210 the following arethe requirement for the event that a carrying and clearing, or a carrying member’s tentative net capital:
(a) Promptly notify FINRA in writing of such deficiency
(b) Take appropriate action to resolve such deficiency within three consecutive business days
(c) Not permit any new transactions to be entered into pursuant to the JBO arrangement -
Question 9 of 10
9. Question
Which of the following requirements must the member may extend and maintain no purpose credit to or for any customer without collateral or on any collateral?
I. The account is recorded separately and confined to the transactions and relations specifically authorized by Regulation
II. The account is not used in any way for the purpose of evading or circumventing any regulation of FINRA or of the Board of Governors of the Federal Reserve System and Rules 400 through 406 of SEC Customer Margin Requirements for Security Futures and Rules 41.42 through 41.49 under the CEA
III. The amount of any deficiency between the equity in the account and the margin required by the other provisions of this Rule shall be charged against the member’s net capital as provided in SEA Rule 15c3-1
IV. The equity in accounts of customers for other control and restricted securities of issuers that are subject to Securities Act Rule 144Correct
According to FINRA rule 4210 the following are requirements for the member that may extend and maintain no purpose credit to or for any customer without collateral or on any collateral:
(a) The account is recorded separately and confined to the transactions and relations specifically authorized by Regulation
(b) The account is not used in any way for the purpose of evading or circumventing any regulation of FINRA or of the Board of Governors of the Federal Reserve System and Rules 400 through 406 of SEC Customer Margin Requirements for Security Futures and Rules 41.42 through 41.49 under the CEA
(c) The amount of any deficiency between the equity in the account and the margin required by the other provisions of this Rule shall be charged against the member’s net capital as provided in SEA Rule 15c3-1Incorrect
According to FINRA rule 4210 the following are requirements for the member that may extend and maintain no purpose credit to or for any customer without collateral or on any collateral:
(a) The account is recorded separately and confined to the transactions and relations specifically authorized by Regulation
(b) The account is not used in any way for the purpose of evading or circumventing any regulation of FINRA or of the Board of Governors of the Federal Reserve System and Rules 400 through 406 of SEC Customer Margin Requirements for Security Futures and Rules 41.42 through 41.49 under the CEA
(c) The amount of any deficiency between the equity in the account and the margin required by the other provisions of this Rule shall be charged against the member’s net capital as provided in SEA Rule 15c3-1 -
Question 10 of 10
10. Question
Which of the following is true in Broker-Dealer Accounts?
Correct
According to FINRA ruke 4210, A member that has Broker-Dealer Accounts may carry the proprietary account of another broker-dealer, which is registered with the SEC.
Incorrect
According to FINRA ruke 4210, A member that has Broker-Dealer Accounts may carry the proprietary account of another broker-dealer, which is registered with the SEC.