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Flashcards in Final Exam Number Three Questions Deck (96):
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The customer buys 100 shares of ABC stock at $40 per share and sells one ABC Jul 40 call @ $6 on the same day in a cash account. the stock rises to $45 and the customer closes out the call at $10 and sells the stock in the market. The gain or loss is:
A. $100 gain
B. $400 gain
C. $400 loss
D. $600 gain

The answer is a

1

Which of the following are nonexempt securities under the securities act of 1933?
A. Government. National mortgage Association mortgage pass-through certificates
B. Small business investment company shares
C. Commercial paper maturing over 270 days
D. Variable annuity contracts

The answer is C and D

2

Which of the following can issue Eurodollar bonds?
A. Domestic corporations
B. Foreign corporations
C. US government
D. Foreign governments

The answer is A B and D

3

The price of interest rate calls will rise if:
A. Interest rates rise
B. Interest rates fall
C. Market demand for treasury notes rises
D. Market demand for treasury notes falls

The answer is a and D

4

Common stockholders have all of the following rights except:
A. Voting for the board of directors
B. Transferring share ownership without restriction by the issuer
C. Inspecting minutes of executive meetings
D. Maintaining proportionate ownership in the company

The best answer is C

5

In a existing margin account a customer wishes to buy 200 shares of ABC stock at $20 per shares and 10 PDQ nov 25 calls @ $2. Instead of paying cash the customer wants to deposit fully paid common shares of XYZ which have a current market value of $40 per share (The customer paid $20 per share). How many shares of XYZ must be deposited?
A. 200 shares
B. 300 shares
C. 400 shares
D. 600 shares

The best answer is a 200 shares

6

Buy stop orders can be used to:
A. Protect a profit on short positions
B. Limit loss on short positions
C. Acquire stock if a resistance level is broken
D. Acquire stock if a support level is broken

The best answer is A B and C.Buy stop orders are placed above the current market and are triggered when the market rises. In a rising market short sellers lose money. To limit the loss of a buy stop is placed to buy in the stock if the market rises to the stop price.

7

Which of the diversification factors below will not reduce the nonsystematic risk of a portfolio?
A maturity
B. Industry in which issuer operates
C. Coupon rate
D. Geographic location of issuer

The best answer is C coupon rate

8

All of the following can initiate repurchase agreements with the government and agency securities as collateral except:
A. Government securities dealers
B. Federal Reserve Banks
C. Federal home loan Banks
D. Commercial banks

The best answer is c.Federal home loan thanks

9

Which of the following statements are true about money market funds?
A. All distributions are fully taxable as investment income
B. Money market funds usually have high beta coefficients
C. The objective of such funds is a long-term capital growth
D. Money market funds usually have no sales charge

The best answer is a and D

10

Which of the following statements are true about rule 147?
A. The rule exempts intrastate issues from federal registration
B. The rule exempts intrastate issues from state registration
C. Both the issuer and all purchasers must be state residents
D. Resale is permitted to state residents only, For the 270 day period Following the offering

The best answer is a C and D

11

All of the following statements are true for both government and agency securities except:
A. They are exempt from registration under the securities act of 1933
B. Interest bearing obligations are quoted in 32nds
C. They are directly back by the full faith and credit of the US
D. They are eligible for trading in the Federal Reserve open-market operations

The best answer is c

12

A municipal syndicate is performing a negotiated underwriting of a revenue bond issue. The additional takedown is set at one point. The selling concession is 3/4 point. A syndicate member who places $1 million of the bonds will earn:
A. $1750
B. $7500
C. $10,000
D. $17,500

The best answer is D

13

A customer invest $10,000 in a oil and gas drilling program & signs a $20,000 recourse note. Which statement is true?
A. The tax basis is zero
B. The tax basis is $10,000
C. The tax basis is $20,000
D. The tax basis is $30,000

The best answer is D

14

Non-interest-bearing securities are quoted based on:
A. 1/8ths
B. 1/16ths
C. 1/32nds
D. Yield basis

The best answer is D

15

A customer age 50 invest $50,000 in a variable annuity. The account has grown in value to $60,000 and at age 55, the customer takes a lump sum withdrawal of $15,000. Which statement is true about the taxation of the withdrawal?
A. The entire $15,000 withdrawal is subject to regular income tax plus a 10% penalty tax
B. $10,000 of the withdrawal is subject to regular income tax plus a 10% penalty tax. $5000 of the withdrawal is not taxable
C. $10,000 of the withdrawal is subject to regular income tax only. $5,000 of the withdrawal is not taxable
D. The entire $15,000 withdrawal is not taxable

The best answer is B

16

A 50-year-old man becomes totally disabled. He wishes to take a lump some distribution from his individual retirement account to pay for medical and living expenses. Which statement is true?
A. The distribution is not subject to any tax
B. The distribution is subject solely to a penalty tax of 10%
C. The distribution is subject Soley to regular income tax
D. The distribution is subject to regular income tax plus a 10% penalty tax

The best answer is C

17

A municipal dealer is re-offerings 7% bonds of which he purchased at par. All of the following quotes would be considered "fair and reasonable" except:
A. 6.90 less 1/2
B. 100 1/2
C. 108
D. 6.75 net

The best answer is C108

18

A registered representative is prospecting customers for a new mutual fund being sponsored by his firm. Which of the following information items mailed to customers must be accompanied by a prospectus:
A. Sales literature
B. Research report
C. Letter stating the funds objectives
D. Fund annual report

The best answer is a B and D

19

A customer's margin account shows:
LONG 200 XYZ @ 60
DEBIT: $5,000
That "buying power" in that account is:
A. Zero
B. $500
C. $1000
D. $2000

The best answer is C

20

A member of a syndicate is placing a order to purchase part of a new issue. The order is for accumulation account being run by the dealer. The priority accorded to the order by the manager will be:
A. Pre-sale
B. Group
C. Designated
D. Member related

The best answer is D

21

Accrued interest is computed on a 30 day month/360 day year for:
A. US government bonds
B. General obligation bonds
C. Revenue bonds
D. Corporate debentures

The best answer is BC and D

22

Which of the following are true about the NYSE super display book system?
A. Market and limit orders are accepted
B. There is no limitation on order size
C. Execution reports are routed directly to the firm via computer
D. Orders cannot be placed on the specialist (DMM's)book through the system

The best answer is a and C

23

A customer holds 10 ABC Jan 60 call contracts. ABC corporation is paying 20% stock dividend. On the ex date, the contracts for show as:
A. 10 ABC Jan 60 calls covering 100 shares each
B. 10 ABC Jan 50 calls covering 120 shares each
C. 12 ABC JAN 50 CALLS COVERING 100 SHARES EACH
d. 12 ABC Jan 50 calls covering 120 shares each

That is the answer is B

24

The expense ratio of a mutual fund is:
A. Fund operating expenses / total net assets
B. Fund operating expenses/annual fund sales
C. Fund operating expenses/fund annual net income
D. Fund portfolio expenses/fund annual net income

The answer is a

25

In order to protect a gain on a long stock position, a customer should place a:
A. Sell stop order
B. Sell limit order
C. Not held order
D. Fill or kill order

The best answer is a

26

A "Day" order is placed on the NYSE super display book by Acme securities. Which statement is true if the order is not filled by the end of the trading day?
A. The order will be canceled by the specialist/DMM
B. The order will be canceled by Acme securities
C. The order remains open on the specialist/DMM's book for one more day
D. The order remains open on the specialist/DMM's book until canceled

The best answer is a

27

The target allocation for a specific asset class has been set at 20% of total assets under the asset allocation scheme. The manager is permitted to reduce the percentage to 15%, and can increase it to 25%, as he or she sees fit. The setting of the 20% target allocation is called:
A. Portfolio rebalancing
B. Strategic asset management
C. Tactical asset management
D. Active asset management

The best answer is B

28

Limited partnerships which invest in raw land seek which tax benefit?
A. Depreciation deductions
B. Depletion allowance
C. Capital gains
D. Text credit

The best answer is C

29

Which of the following are evaluated in the feasibility study prepared prior to the issuance of revenue bonds?
A. Expected demand for the facility
B. Effect of competing facilities
C. Expected operating costs of the facility
D. Bond trust indenture

The best answer is a B and C

30

A options confirmation discloses all of the following except:
A. Type of option and name of underlying security
B. Expiration and strike price
C. Open interest and trading volume
D. Execution price and commission

The best answer is C

31

A $100,000 new issue municipal bond is purchased by a financial institution at 90. The bond has 10 years to maturity. The bond is sold after five years at 95. The tax consequence is:
A. No gain no loss
B. One point gain
C. One point loss
D. Five point gain

The best answer is a

32

A "unqualified" legal opinion on a revenue bond is a one which:
A. States that the pledged revenues are subject to prior liens
B. Is given by an unqualified bond counsel
C. States that no liens have been found against pledged revenues
D. States that the bond counsel is qualified in the state to render a opinion

The best answer is C

33

All of the following options orders to sell calls are permitted except:
A. An individual selling naked calls in a discretionary account
B. An investment company selling calls against securities in its portfolio
C. A corporations selling calls against its underlying stock
D. A custodian selling calls against securities in a custodian account

The best answer is C

34

A corporate bond was issued on January 1, 1998 that matures on January 1, 2018. The indenture allows the corporation to call the bond starting in 2008 at a price equaling 100 1/2 plus an additional 1/4 point premium for every six months period Remaining until maturity. If the bond is called on January 1, 2014 the redemption price will be:
A. 102 1/2
B. 102
C. 101 1/2
D. 100 1/2

The best answer is a

35

A customer has fully paid Marginable securities in his vault at home that he wishes his brokerage firm to hold. Which statements are true?
A. The brokerage firm can charge for this service
B. The brokerage firm cannot charge for this service
C. The securities must be segregated and placed in safekeeping
D. The securities can be commingled with those of other customers

The best answer is a and C

36

All of the following are arbitrage transactions except:
A. Buy a security on the NYSE/sell that security on the PHLX
B. Buy a convertible bonds on the NYSE/sell the common stock of the same issuer on the NYSE
C. BY THE COMMON STOCK OF ONE COMPANY THAT IS THE TARGET OF A TENDER OFFER/SELL THE STOCK OF THE COMPANY THAT IS MAKING THE TENDER OFFER
D. Buy a security on the NYSE/sell that security on the NYSE

The best answer is D

37

A customer wishes to maximize the liquidity and minimize interest rate risk. The best recommendation is:
A. Short term maturities
B. Long term maturities
C. Callable bonds
D. Non-callable bonds

The best answer is a

38

A customer has a existing margin account and wants to write five covered calls against 500 shares of stock in the account. The margin requirement to write the call is:
A. Zero
B. 5% of Stocks the market value
C. 20% of the Stocks market value
D. 50% of the Stocks market value

The best answer is a

39

Which of the following statements are true?
A. Reg. T requires payment for purchases no later than 2 business days after settlement
B. Regulation T applies to both exempt and nonexempt securities
C. Regulation T applies to both listed and unlisted security
D. Regulation T sets both initial and maintenance margins

The best answer is a and C

40

All of the following must be sent to broker-dealer customers semiannually except:
A. Broker-dealer balance sheet
B. Broker-dealer subordinate loan amount
C. Broker dealer net capital computation
D. Broker-dealer securities inventory amounts

The best answer is D

41

A company has reported earnings per-share of five dollars. The company paid a dollar per share preferred dividend and a dollar per share common dividend. The company's dividend payout ratio is:
A. 20%
B. 25%
C. 40%
D. 50%

The best answer is a

42

Which of the following cover the sale of 1 ABC Jan 50 call contract?
A. The deposit of 100 shares of ABC stock
B. The purchase of 1 ABC Apr 50 call
C. The purchase of 1 ABC Oct 50 call
D. The deposit of $5000

The best answer is a and B

43

Which of the following bonds trades "flat?"
A. Unsecured bonds
B. Income bonds
C. Reset bonds
D. Mortgage bonds

The best answer is B

44

All of the following securities are eligible for trading by the Federal Reserve except:
A. Treasury bills
B. Bond anticipation Notes
C. US government bonds
D. Federal home loan bonds

The best answer is B

45

The reported net income of a company has declined at a faster rate than operating income. This could result only from an increase in:
A. Depreciation expense
B. Interest expense
C. Cost of goods sold
D. Product returns

The best answer is B

46

A investor wishes to do a municipal bond tax swap. He can expect to pay extra funds for the swap if the newly purchased bonds have a:
A. Lower coupon
B. Higher coupon
C. Lower rating
D. Higher rating

The best answer is B and D

47

Which statements are true regarding mutual funds?
A. That day's closing price is the basis for fund purchase price computations
B. That day's closing price is the basis for fund redemption price computations
C. The next day's closing price is the basis for fund purchase price complications
D. The preceding days closing price is the basis for redemption price computations

The best answer is a and B

48

A customer buys 1 ABC Jan 50 call @ $3 when the market price is $51. The customer exercises the call when the market rises to $53. The tax consequence is:
A. No gain or loss
B. $300 capital gain
C. Cost basis in the stock of $5000
D. Cost basis in the stock of $5300

The best answer is D

49

The sale of direct participation programs is regulated by the:
A. Securities act of 1933
B. State blue sky laws
C. FINRA rules
D. MSRB Rules

The best answer is a B and C

50

General obligation bonds analysis would consider all of the following except:
A. Record of tax collections
B. Ratio of total debt per capita
C. Protective covenants in the trust indenture
D. Trend of assessed valuation of property

The best answer is C

51

The value of both the Dow Jones and standard and poor's averages would be most affected by a change in the:
A. Transportation stocks
B. Financial stocks
C. Utility stocks
D. Industrial stocks

The best answer is D

52

Monetary policy tools of the Federal Reserve board include changing all of the following except:
A. Discount rate
B. Tax rates
C. Reserve requirements
D. Margin requirements

The best answer is B

53

Which of the following orders will be reduced on the specialist/DMM's book on ex- date?
A. Buy 100 ABC at 50
B. Buy 100 ABC at 60 stop
C. Sell 100 ABC at 50 stop DNR
D. Sell 100 ABC at 60

The best answer is only A

54

All of the following callable municipal bonds are trading had a 8% basis. Which is least likely to be called?
A. 6 3/4% coupon rate callable at 103 in 2014
B. 7 1/2% coupon rate callable at 103 in 2014
C. 8% coupon rate callable at 100 in 2014
D. 8 3/4% coupon rate callable at 100 in 2014

The best answer is a

55

For violating municipal securities rulemaking board rules, action would be taken against a broker-dealer by:
A. The MSRB
B. The FDIC
C. The SIPC
D. FINRA

The best answer is D

56

Monetary aggregates have increased over the last month. Which statement is true?
A. The federal funds rate is likely to increase
B. Loans made by banks are likely to increase
C. The primary is likely to increase
D. Reserve requirements are likely to increase

The best answer is B

57

A broker dealer who acted as financial advisor to A municipality in structuring a new issue now wishes to act as underwriter and a negotiated offering. Which statement is true?
A. This is permitted
B. This is prohibited
C. This is permitted only if the approval is obtained from the MSRB
D. This is permitted only if the issuer agrees

The best answer is B

58

The customer has a individual cash account, the individual margin account, a joint cash account with his wife, and a custodian account for each of his two children. If the firm liquidates, securities investor protection Corporation covers:
A. Only the custodian accounts
B. The custodian accounts separately, the joint account separately, and both individual accounts separately
C. The custodian accounts separately, the joint account separately, and both individual accounts are combined and treated as one separate account
D. Any one account of the customers choosing, the other accounts become general creditors of the broker-dealer

The best answer is C

59

"Blue-chip" corporation experiencing a short-term cash flow shortage could issue:
A. Bankers acceptances
B. Commercial paper
C. Money market certificates
D. Subordinate Debentures

The best answer is B

60

Which statements are true regarding variable annuities during the accumulation phase?
A. Periodic payments of fixed dollar amounts are made
B. Periodic payments of varying dollar amounts are made
C. A fixed number of units is purchased with each payment
D. A varying number of units is purchased with each payment

The best answer is A and D

61

Which statements are true regarding variable annuities during the annuity phase?
A. Periodic payments of fixed dollar amounts are made
B. Periodic payments of varying dollar amounts are made
C. Payments are based on a fixed number of units
D. Payments are based on very number of units

The best answer is B and C

62

A customer places a order to sell 100 XYZ at 38 stop limit. This means that the order:
A. Is elected at 38 or lower and can be executed at 38 or higher
B. Is elected at 38 or higher and can be executed at 38 or lower
C. Can only be filled at 38 exactly
D. Will be filled at 38 or better only after a trading halt

The best answer is a

63

A registered representative in your firm has died and one of his customers with a $100,000 account has been turned over to you. You should:
A. Complete a broker to broker account transfer form
B. Update the new accounts (client information) form
C. Verify all account trading during the preceding three months
D. Obtain a inheritance tax waiver

The best answer is B

64

Which of the following statements true regarding CMO's?
A. When interest rates rise, maturities Will lengthen
B. When interest rates fall, maturities will shorten
C. What interest rates rise, holders are subject to prepayment risk
D. When interest rates fall, holders are subject to extension risk

The best answer is a and B only

65

A woman is the owner of 200,000 shares of XYZ stock. XYZ is a publicly traded company with 1 million shares outstanding. Which of the following statements are true?
A. She is considered a "insider" under the securities and exchange act of 1934
B. She is prohibited from selling XYZ stock short
C. She must report trading activity to the SEC
D. She must be registered with the SEC as a holder of more than 5% of the company's stock

The best answer is a BC and D so all of the above

66

Yields on three month treasury bills have declined to 4.84% from 5.21% at the prior weeks treasury auction. This indicates that:
A. Treasury bill prices are falling
B. Market interest rates are falling
C. Demand for treasury bills is a weakening
D. The Federal Reserve may have to loosen credit

The best answer is B

67

If the index option is exercised, the holders account will be:
A. Credited the "in the money" amount
B. Credited the "out the money" amount
C. Debited the "in the money" amount
D. Debited the "out the money" amount

The best answer is a

68

Which of the following are QIB's under rule 144 a?
A. Individual with at least $100 million of assets to invest
B. Investment company with at least $100 million of assets to invest
C. Insurance company with at least $100 million of assets to invest
D. Trust fund with at least $100 million of assets to invest

The best answer is BC and D

69

Which statements are true when comparing traditional CDs to market index linked CDs?
A. Traditional CDs have market risk if redeemed prior to maturity
B. Traditional CDs do not have market risk if redeemed prior to maturity
C. Market index linked CDs have market risk it redeemed prior to maturity
D. Market index linked CDs do not have market risk it redeemed prior to maturity

The best answer is B and C

70

Arrange the following from largest to smallest?
A. Underwriters concession
B. Selling concession
C. Spread
D. Reallowance

The best answer is C a BD

71

The responsibility for investigating the adequacy and accuracy of information contained in limited partnership offering materials rests with the:
A. Securities and exchange commission
B. Financial industry regulatory authority
C. Managing underwriter
D. Limited partners

The best answer is C

72

The first use of funds under "gross lien" revenue pledge is to pay the:
A. Operation and maintenance fund
B. Debt service fund
C. Debt service reserve fund
D. Maintenance reserve fun

The best answer is B

73

A customer asked the following question: "one of my neighbors was talking about his investment in an ETF(Exchange traded fund)and said that it is tax inefficient. Is this true?" The registered representative should responded that:
A. The tax treatment of all investment companies is the same, regardless of whether the investment company is a mutual fund or exchange traded fund
B. Mutual funds are obligated to distribute capital gains to their shareholders once a year, which are taxable, whereas exchange trade funds are not under this obligation, so capital gains taxation generally occurs when the shares are sold
C. Exchange traded funds are obligated to distribute capital gains to the shareholders once a year, which are taxable, whereas mutual funds are not under this obligation, so capital gains taxation generally occurs when the shares are redeemed
D. Capital gains to distributed by mutual funds are always taxed as short-term, whereas the tax treatment of capital gains on exchange traded fund shares depends on the holding period of the shares

The best answer is B

74

A mutual fund offers the following share classes:
class a shares
class B shares and
class C shares

See page 99 for more details

75

A wealthy customer has been asked by his neighbor to invest in the private placement of a "start up" technology company as a venture-capital investor. This is the first time that the customer has considered such a investment. The customer contacts his registered representative and asks "aside from the investment risk associated with a start up company, what are the other issues that I should consider before making such an investment."
The registered representative should inform the customer that:
A. There is no public resale market for these securities unless the company "goes public" and is current in SEC filings
B. These securities can only be sold to customers that have a minimum net worth of $1 million
C. These securities must be held for at least six months before a public resale is permitted under the provisions of rule 144
D. After issuance, these securities can only be traded in the portal market

The best answer is a and C

76

A investors seeking a high level of income and a moderate level of risk would buy:
A. Common stock
B. Mortgage bonds
C. Income bonds
D. Convertible bonds

The best answer is B

77

If the market price and the strike price are the same at expiration, which of the following open options positions will result in a loss?
A. Long call
B. Short call
C. Long straddle
D. Short straddle

The best answer is a and C

78

Underwriting syndicate group members:
A. Share in both selling responsibility for the new issue and liability for any unsold portion of the new issues.
B. Share in selling responsibility for the new issue but are not liable for any unsold portion of the new issue
C. Do not share in selling responsibility for the new issue and are liable for any unsold portion of the new issue
D. Do not share in selling responsibility for the new issue and are not liable for any unsold portion of the new issue

The best answer is a

79

Which statements are true about the defensive stocks that are included in a portfolio allocation model? Defensive stocks have:
A. Higher expected returns then any other equities included in the portfolio
B. Lower expected returns than other equities included in the portfolio
C. Higher standard deviations ( risk ) then other equities included in the portfolio
D. Lower standard deviations (risk) then other equities included in the portfolio

The best answer is B and D

80

Which of the following investment portfolios is the least liquid?
A. A aggressive growth fund
B. A US government securities fund
C. A money market funds
D. A income fund

The best answer is a

81

SPDR "spiders", QQQQ "Qubes" and DIA "diamonds" are acronyms for:
A. American depository receipts
B. Exchange traded funds
C. Mutual funds
D. Collateralized mortgage obligations

The best answer is B

82

All of the following statements are true about exchange traded index funds except:
A. Exchange traded index funds typically have the same or lower expense ratios than index mutual funds
B. Exchange traded index funds can be traded any time during exchange trading hours at net asset value
C. Exchange traded index funds can be purchased on a margin
D. Exchange traded index funds can be traded at no commission cost to the customer

The best answer is D

83

Reinvestment risk is a concern for a investor who invests in securities that make periodic payments:
A. Over short term time horizons
B. Over long-term time horizons
C. During time horizons when interest rates are rising
D. During time horizons when interest rates are falling

The best answer is D

84

The minimum margin requirement to open a day trading account is:
A. $2000
B. $10,000
C. $25,000
D. $50,000

The best answer is C

85

Most corporate bond trades are executed:
A. On exchange floors
B. Over-the-counter
C. By bond dealers
D. By specialist/DMM's

The best answers Are B and C

86

ECNs trade:
A. Stocks
B. Stock options
C. Bonds
D. Mutual funds

The best answer is a

87

Which two of the following instruments are typically used in money laundering activities?
A. Stock certificates
B. Money orders
C. Money market instruments
D. Travelers checks

The best answer is B and D

88

All of the following are exempt from registration as a investment advisor in a state except:
A. Broker dealers
B. Depository institutions
C. General circulation newsletter
D. Newsletter rendering advice based upon a customer's specific circumstances

The best answer is D

89

New issues of municipal notes and bonds are available and which form?
A. Bearer
B. Book entry
C. Registered to principal and interest
D. Registered two principal only

The best answer is B

90

If it is determined that a customer account that is paying a annual flat fee would have been cheaper if the customer paid a commission on each trade, then the member firm:
A. Must refund the excess charges to the customer, with interest, based on the previous 12 months' trading experience
B. Is permitted to deduct the excess charges from the registered Representatives paycheck and credit them to the customers account
C. Must transfer the customer account to a discount broker that charges only on a per trade basis and that does not maintain fee based accounts
D. Must contact the customer, providing the information needed to determine if customer should maintain the fee based account

The best answer is D

91

A customer buys of brokered CD for $100,000. Upon receipt of his next account statement, he sees that the market value of the CD is shown as $99,800. This would occur because:
A. Interest rates have risen
B. Interest rates have fallen
C. The brokers commission for selling the CD has been deducted
D. The bank that issued the CD has charge an up front handling

The best answer is a

92

A sell order for a customer is considered to be "long" if the customer is long:
A. A call option on the stock being sold that has not yet been exercised
B. The stock and will not deliver the shares on settlement
C. A convertible bond that has been converted into the stock being sold for delivery on settlement
D. A warrant on the stock being sold that has not yet been exercised

The best answer is C

93

A customer asks about ratings services that rate mutual fund performance. The registered representative should refer the customer to:
A. MorningStar
B. Moody's
C. Standard and poor's
D. Member firm in-house research report

The best answer is a

94

A registered representative at a FINRA member firm has been elected to his cooperative apartment buildings Board of Directors. Which statement is true?
A. This event must be reported to FINRA
B. This event must be reported to his or her employer
C. This event must be reported to both FINRA and his or her employer
D. No report is required to either FINRA or the employing member firm

The best answer is B

95

When comparing street name registration to direct registration:
A. Street name registration records the owners name on the books of the transfer agent
B. Direct registration records the owners name on the books of the transfer agent
C. Dividend and interest payments on the street name securities are received from the issuer or the transfer agent
D. Dividends and interest payments on direct registration securities are received from the issuer or transfer agent

The best answer is B and D