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| Section | Objectives |
|---|---|
| Topic 1: Job Functions Overview | - Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile
|
Question 1
Customers who engage in increased activity of wiring money from their account could indicate which of
the following activities?
A. Interpositioning
B. Churning
C. Money laundering
D. Crossing
Question 2
Under Regulation T of the Federal Reserve, when may a broker overlook an amount due in a customer's
account?
A. if it does not exceed $1,000
B. under no circumstances
C. if the client makes a request in writing
D. if the value of a trade is less than $1,000
Question 3
Municipal syndicate allocation procedures are described in which of the following?
A. syndicate account letter
B. official statement
C. agreement among the underwriters
D. underwriting agreement
Question 4
XYZ Corporation earned $2 per share last year and is selling at $20 per share. If it earns $3 per share this
year and its price/earnings ratio stays the same, its price will be:
A. $60
B. $30
C. $20
D. $25
Question 5
Bubba buys 100 shares of XYZ stock at $40 per share and sells a listed July XYZ call at 45 for a $2
premium. What is his loss potential?
A. $4,200
B. $3,800
C. $4,500
D. $4,000
Solutions:
| Question 1 Answer: C | Question 2 Answer: A | Question 3 Answer: A | Question 4 Answer: B | Question 5 Answer: B |
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