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Question 1 of 10
1. Question
31. Which of the following describes Certain Restricted Securities?
I. The saleable pursuant to the terms and conditions of Securities Act Rule 144(b)(1)
II. The saleable pursuant to the terms and conditions of Securities Act Rule 145(d)(2), shall not be subject to the provisions of paragraph (e)(8) of this Rule
III. The saleable pursuant to the terms and conditions of Securities Act Rule 145(d)(2), shall be subject to the provisions of paragraph (e)(8) of this Rule
IV. The aggregate credit extended to all customers on all control and restricted securitiesCorrect
According to FINRA rule 4210 the following describes Certain Restricted Securities:
(a) The saleable pursuant to the terms and conditions of Securities Act Rule 144(b)(1)
(b) The saleable pursuant to the terms and conditions of Securities Act Rule 145(d)(2), shall not be subject to the provisions of paragraph (e)(8) of this RuleIncorrect
According to FINRA rule 4210 the following describes Certain Restricted Securities:
(a) The saleable pursuant to the terms and conditions of Securities Act Rule 144(b)(1)
(b) The saleable pursuant to the terms and conditions of Securities Act Rule 145(d)(2), shall not be subject to the provisions of paragraph (e)(8) of this Rule -
Question 2 of 10
2. Question
What is the minimum requirement for the margin in transactions with exempt accounts involving highly rated foreign sovereign debt securities and investment grade debt securities?
Correct
According to FINRA rule 4210, the minimum requirement for margin in transactions with exempt accounts involving highly rated foreign sovereign debt securities and investment grade debt securities the margin to be maintained on highly rated foreign sovereign debt and investment grade debt securities shall be, in lieu of any greater requirements imposed.
Incorrect
According to FINRA rule 4210, the minimum requirement for margin in transactions with exempt accounts involving highly rated foreign sovereign debt securities and investment grade debt securities the margin to be maintained on highly rated foreign sovereign debt and investment grade debt securities shall be, in lieu of any greater requirements imposed.
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Question 3 of 10
3. Question
Which of the following happen to principal amount of the GNMA covered by such option contract?
I. GNMA underlies the option contract, the exercise price of the option contract multiplied by the nominal principal amount
II. GNMA delivered upon exercise of an option contract is a permissible variant of, rather than equal to, the nominal principal amount
III. the GNMA aggregate exercise price shall be adjusted to equal the product of the exercise price and such remaining unpaid principal balance, plus in each case the appropriate differential
IV. GNMA may not delivered upon exercise of an option contract is a permissible variant of, rather than equal to, the nominal principal amountCorrect
According to FINRA rule 4210 the following happen to principal amount of the GNMA covered by such option contract:
(a) GNMA underlies the option contract, the exercise price of the option contract multiplied by the nominal principal amount
(b) GNMA delivered upon exercise of an option contract is a permissible variant of, rather than equal to, the nominal principal amount
(c) the GNMA aggregate exercise price shall be adjusted to equal the product of the exercise price and such remaining unpaid principal balance, plus in each case the appropriate differentialIncorrect
According to FINRA rule 4210 the following happen to principal amount of the GNMA covered by such option contract:
(a) GNMA underlies the option contract, the exercise price of the option contract multiplied by the nominal principal amount
(b) GNMA delivered upon exercise of an option contract is a permissible variant of, rather than equal to, the nominal principal amount
(c) the GNMA aggregate exercise price shall be adjusted to equal the product of the exercise price and such remaining unpaid principal balance, plus in each case the appropriate differential -
Question 4 of 10
4. Question
How much does need by the member to maintain as tentative capital for Joint Back Office Arrangements?
Correct
According to FINRA rule 4210 to form Joint Back Office Arrangements, it needs $25 million to maintain as tentative capital.
Incorrect
According to FINRA rule 4210 to form Joint Back Office Arrangements, it needs $25 million to maintain as tentative capital.
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Question 5 of 10
5. Question
How many percent need in current market value of such securities “long” in the account for Other Control and Restricted Securities?
Correct
According to FINRA rule 4210 it needs 40 percent current market value of such securities “long” in the account for Other Control and Restricted Securities.
Incorrect
According to FINRA rule 4210 it needs 40 percent current market value of such securities “long” in the account for Other Control and Restricted Securities.
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Question 6 of 10
6. Question
What will happen to a net capital that aggregate credit that is actually extended to all customers on control and restricted securities of any one issue that exceeds 10 percent?
Correct
According to FINRA rule 4210, a member that aggregate credit that is actually extended to all customers on control and restricted securities of any one issue that exceeds 10 percent shall the net capital shall be deducted from net capital for purposes.
Incorrect
According to FINRA rule 4210, a member that aggregate credit that is actually extended to all customers on control and restricted securities of any one issue that exceeds 10 percent shall the net capital shall be deducted from net capital for purposes.
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Question 7 of 10
7. Question
Which of the following describes escrow agreement?
I. Used in connection with cash settled calls, puts, currency warrants, currency index warrants or stock index warrants, carried “short”
II. Any agreement issued in a form acceptable to FINRA under which a bank holding cash, cash equivalents, one or more qualified equity securities or a combination thereof in the case of a call or warrants, or cash, cash equivalents
III. A combination thereof in the case of a put or warrant is obligated (in the case of an option) to pay the creditor the exercise settlement amount in the event an option is assigned an exercise notice
IV. The sufficient funds to purchase a warrant sold “short” in the event of a buy-inCorrect
According to FINRA rule 4210, the following describes escrow agreement:
(a) Used in connection with cash settled calls, puts, currency warrants, currency index warrants or stock index warrants, carried “short”
(b) Any agreement issued in a form acceptable to FINRA under which a bank holding cash, cash equivalents, one or more qualified equity securities or a combination thereof in the case of a call or warrants, or cash, cash equivalents
(c) A combination thereof in the case of a put or warrant is obligated (in the case of an option) to pay the creditor the exercise settlement amount in the event an option is assigned an exercise notice
(d) The sufficient funds to purchase a warrant sold “short” in the event of a buy-inIncorrect
According to FINRA rule 4210, the following describes escrow agreement:
(a) Used in connection with cash settled calls, puts, currency warrants, currency index warrants or stock index warrants, carried “short”
(b) Any agreement issued in a form acceptable to FINRA under which a bank holding cash, cash equivalents, one or more qualified equity securities or a combination thereof in the case of a call or warrants, or cash, cash equivalents
(c) A combination thereof in the case of a put or warrant is obligated (in the case of an option) to pay the creditor the exercise settlement amount in the event an option is assigned an exercise notice
(d) The sufficient funds to purchase a warrant sold “short” in the event of a buy-in -
Question 8 of 10
8. Question
Which of the following requirements for the term “spread” means a “long” and “short” position in different call option series?
I. All options must have the same underlying security or instrument
II. All “long” and “short” option contracts must be either all American-style or all European-style;
III. All “long” and “short” option contracts must be either all listed or all OTC;
IV. The aggregate underlying contract value of “long” versus “short” contracts within option type(s) must be equalCorrect
According to FINRA rule 4210 the following requirements for the term “spread” means a “long” and “short” position in different call option series?
(a) All options must have the same underlying security or instrument;
(b) All “long” and “short” option contracts must be either all American-style or all European-style
(c) All “long” and “short” option contracts must be either all listed or all OTC;
(d) The aggregate underlying contract value of “long” versus “short” contracts within option type(s) must be equalIncorrect
According to FINRA rule 4210 the following requirements for the term “spread” means a “long” and “short” position in different call option series?
(a) All options must have the same underlying security or instrument;
(b) All “long” and “short” option contracts must be either all American-style or all European-style
(c) All “long” and “short” option contracts must be either all listed or all OTC;
(d) The aggregate underlying contract value of “long” versus “short” contracts within option type(s) must be equal -
Question 9 of 10
9. Question
Which of the following simply describe underlying component?
I. The equivalent number of shares
II. Industry and broad index stock groups
III. The index group value and the applicable index multiplier
IV.Foreign currencies, the units per foreign currency contractCorrect
According to FINRA rule 4210 the following simply describe underlying component:
(a) The equivalent number of shares
(b) Industry and broad index stock groups
(c ) The index group value and the applicable index multiplier
(d) Foreign currencies, the units per foreign currency contractIncorrect
According to FINRA rule 4210 the following simply describe underlying component:
(a) The equivalent number of shares
(b) Industry and broad index stock groups
(c ) The index group value and the applicable index multiplier
(d) Foreign currencies, the units per foreign currency contract -
Question 10 of 10
10. Question
What is excess securities mean?
Correct
According to FINRA rule 4210, excess securities mean is the amount of securities, if any, by which the aggregate position in control and restricted securities of any one issue exceeds the aggregate amount of securities that would be required to support the aggregate credit extended on such control and restricted securities if the applicable margin requirement were 50 percent. Not 20 percent, 10 percent and 5 percent of requirements.
Incorrect
According to FINRA rule 4210, excess securities mean is the amount of securities, if any, by which the aggregate position in control and restricted securities of any one issue exceeds the aggregate amount of securities that would be required to support the aggregate credit extended on such control and restricted securities if the applicable margin requirement were 50 percent. Not 20 percent, 10 percent and 5 percent of requirements.