Unit 2

Question 1

Are commodities securities?

Answer 1

No

Question 2

Are ADRs securities?

Answer 2

Yes

Question 3

Are endowments securities?

Answer 3

No

Question 4

Are interests in farmland securities?

Answer 4

Yes

Question 5

Are options on futures securities?

Answer 5

Yes

Question 6

Is art a security?

Answer 6

No

Question 7

Are debentures securities?

Answer 7

Yes

Question 8

Are viaticals securities?

Answer 8

Yes

Question 9

Are term life policies securities?

Answer 9

No

Question 10

Are whole life policies securities?

Answer 10

No

Question 11

Are mortgages securities?

Answer 11

No

Question 12

Who is responsible for the administration of the Bank Secrecy Act?

Answer 12

The Financial Crimes Enforcement Network (FinCen)

Question 13

A security may be registered by coordination if the same offering is being registered under the __________________________.

Answer 13

Securities
Act of 1933

Question 14

Under the Uniform Securities Act, private placements are exempt from registration if the securities are offered to no more than __ non-institutional investors in a 12 month period.

Answer 14

10

Question 15

Intrastate offerings are commonly registered by _______________.

Answer 15

qualification

Question 16

The method of registration most often used by the new issuers of securities (IPOs) is registration by ___________.

Answer 16

coordination

Question 17

Are commodity futures securities?

Answer 17

No.

Question 18

____________________ are a type of debt security and are exempt if they’re issued in minimum denominations of $50,000, have no more than nine months to maturity, and are rated in one of the three highest credit categories by a Nationally
Recognized Statistical Ratings Organization (NRSRO)

Answer 18

Promissory notes

Question 19

Are Keogh Participation Units securities?

Answer 19

Yes

Question 20

Are stock futures currencies?

Answer 20

No

Question 21

Are variable life insurance policies considered securities?

Answer 21

Yes