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 is not considered as maturity dates of security haircuts?
Correct
Security haircuts will not mature between 1 year and 2 years and within 6 months of one another. Maturity dates refer to which the principal amount of security becomes due. Security haircuts normally mature between 9 months and 15 months and within 3 months of one another, 2 years and 4 years and within 1 year of one another, or 8 years and 12 years and within 2 years of one another.
Incorrect
Security haircuts will not mature between 1 year and 2 years and within 6 months of one another. Maturity dates refer to which the principal amount of security becomes due. Security haircuts normally mature between 9 months and 15 months and within 3 months of one another, 2 years and 4 years and within 1 year of one another, or 8 years and 12 years and within 2 years of one another.
-
Question 2 of 10
2. Question
Which of the following statements are correct regarding FINRA By-Laws Article III, “Action by Consent of Stockholder”?
I. Actions required to be taken at stockholders’ meetings may be taken without a meeting, or without prior notice, if there is a written consent regarding these actions.
II. Written consent must be signed by the holder of the outstanding stock.
III. Written consent is not permitted in taking actions at any stockholders’ meeting.
IV. Actions to be taken at the meeting may be taken without a vote, as long as there is a consent signed by the holder of the outstanding stock.Correct
Under FINRA By-Laws Article III Sec. 3.1, signed written consent must be made before action would take place at any meeting of the stockholder of FINRA Regulation, even without a meeting, without prior notice, and without a vote. This written consent must be signed first by the holder of the outstanding stock before proceeding to the meeting.
Incorrect
Under FINRA By-Laws Article III Sec. 3.1, signed written consent must be made before action would take place at any meeting of the stockholder of FINRA Regulation, even without a meeting, without prior notice, and without a vote. This written consent must be signed first by the holder of the outstanding stock before proceeding to the meeting.
-
Question 3 of 10
3. Question
Under FINRA Rule 2121, which of the following circumstances must be taken by a member in buying or selling his account from/to his customer, regarding buying or selling at a fair price?
I. The market condition in relation to security at the time of the transaction
II. The losses incurred from the previous transaction
III. The expenses involved
IV. The fact that he is entitled to a profitCorrect
All of the statements are circumstances in buying or selling at a fair price, except for the losses incurred from the previous transaction. The losses may not be considered in setting a fair price in security transactions, whether listed or unlisted, because profit is the first factor in setting fair prices.
Incorrect
All of the statements are circumstances in buying or selling at a fair price, except for the losses incurred from the previous transaction. The losses may not be considered in setting a fair price in security transactions, whether listed or unlisted, because profit is the first factor in setting fair prices.
-
Question 4 of 10
4. Question
How must the charges on miscellaneous services be set up?
Correct
Under the FINRA Rule 2122, charges for miscellaneous services performed shall avoid being unjust and unreasonable and is not limited only to miscellaneous services. Services such as exchange or transfer of securities and safekeeping of securities also require setting fees on a just and reasonable basis.
Incorrect
Under the FINRA Rule 2122, charges for miscellaneous services performed shall avoid being unjust and unreasonable and is not limited only to miscellaneous services. Services such as exchange or transfer of securities and safekeeping of securities also require setting fees on a just and reasonable basis.
-
Question 5 of 10
5. Question
Under the FINRA Rule 4512, in order to maintain the customer account information, which of the following is required to be collected?
I. Customer’s name and residence
II. Proof of customer’s legal age
III. Signature of a partner, officer, or a manager to indicate that the account has complied with the policies and procedures of a member
IV. The name/s of authorized person/s in a corporation to transact business on behalf of the entityCorrect
For each account, all of the information stated above is required to be collected and maintained as mentioned in FINRA Rule 4512. Its purpose in collecting the information is to exercise proper judgment in both the customer’s and the agent’s accounts.
Incorrect
For each account, all of the information stated above is required to be collected and maintained as mentioned in FINRA Rule 4512. Its purpose in collecting the information is to exercise proper judgment in both the customer’s and the agent’s accounts.
-
Question 6 of 10
6. Question
Which of the following statements shall not constitute a fraudulent, deceptive, or manipulative act as stated in SEC Rule 15c2-4 in accepting any part of the sale price being distributed?
I. If the money or other consideration received is transmitted to the entitled third party person
II. If the money or other consideration received has been deposited in a separate bank account as an agent or trustee
III. If the distribution is being made on an “all-or-none” basis
IV. If the distribution is being made on any other basis as proof that the payment is not to be made by the authorized person for distribution until some further contingency occurs.Correct
Under SEC Rule 15c2-4, the statements above are an exception in accepting any part of the sale price being distributed that constitutes a fraudulent, deceptive, or manipulative act. This only applies to the transmission or maintenance of payments with underwritings.
Incorrect
Under SEC Rule 15c2-4, the statements above are an exception in accepting any part of the sale price being distributed that constitutes a fraudulent, deceptive, or manipulative act. This only applies to the transmission or maintenance of payments with underwritings.
-
Question 7 of 10
7. Question
In relation to FINRA Rule 11361, how must the stock certificates in the settlement contract be delivered if the transaction is for less than 100 shares?
Correct
According to FINRA Rule 11361, if the transaction is for less than 100 shares, stock certificates shall be in the exact amount of the contract or for smaller units aggregating the amount of contract. If the transaction is for more than 100 shares but not in multiples of 100, stock certificates must add either the exact amount or smaller of the odd lot.
Incorrect
According to FINRA Rule 11361, if the transaction is for less than 100 shares, stock certificates shall be in the exact amount of the contract or for smaller units aggregating the amount of contract. If the transaction is for more than 100 shares but not in multiples of 100, stock certificates must add either the exact amount or smaller of the odd lot.
-
Question 8 of 10
8. Question
In relation to FINRA Rule 11362, which denominations must coupon bonds be delivered?
I. $1,000
II. $100
III. Multiples thereof aggregating $1,000
IV. $960Correct
Under the FINRA Rule 11362, each delivery of coupon bonds shall be made in denominations of $1,000, $100, or multiples of $1,000. If the bonds were both at registered and coupon form, the denominations would be based on the bonds they interchanged.
Incorrect
Under the FINRA Rule 11362, each delivery of coupon bonds shall be made in denominations of $1,000, $100, or multiples of $1,000. If the bonds were both at registered and coupon form, the denominations would be based on the bonds they interchanged.
-
Question 9 of 10
9. Question
Which kind of bond has a required denomination of the delivery of $1,000 or multiples thereof or in amounts of $100, but in no event in denominations larger than $100,000?
Correct
Under the FINRA Rule 11362, registered bonds issued require denominations of $1,000 and $100, but in no event in denominations larger than $100. On the other hand, for coupon bonds, its denominations shall be in $100 up to $1,000.
Incorrect
Under the FINRA Rule 11362, registered bonds issued require denominations of $1,000 and $100, but in no event in denominations larger than $100. On the other hand, for coupon bonds, its denominations shall be in $100 up to $1,000.
-
Question 10 of 10
10. Question
Under the FINRA Rule 11860, which of the following is not a procedure in accepting an order from a customer, including foreign customers and/or broker-dealer’s trading, in accordance with purchasing and delivering of securities made to or by an agent?
Correct
An agreement to be obtained by a member regarding the furnishing of relevant data must be made on the close of business “on the first business day after the date of execution of trade” even if the transaction was payment-on-delivery, which is the same with the collect-on-delivery transaction. Delaying the submission of the relevant data would cause delays in delivery.
Incorrect
An agreement to be obtained by a member regarding the furnishing of relevant data must be made on the close of business “on the first business day after the date of execution of trade” even if the transaction was payment-on-delivery, which is the same with the collect-on-delivery transaction. Delaying the submission of the relevant data would cause delays in delivery.