Series 7: Chapter 14 Practice Questions

Chapter 14 Practice Questions

1. 1. A customer account form must be sent to a customer within 30 days of opening a new customer account. The customer account form must include all of the following information except:
2. A. The customer’s date of birth
3. B. The customer’s net worth
4. C. The customer’s educational background
5. D. The name of the representative in charge of the customer’s account
6. 2. William and Ruth share a joint tenants in common brokerage account. This account has all the following characteristics except:
7. A. The certificates of securities sold from the account must be signed by both parties.
8. B. The account can only be closed by both parties.
9. C. Both owners have equal rights to the account’s assets.
10. D. Checks deposited into the account must be endorsed by both parties.
11. 3. Under a Uniform Transfers to Minors account, assets must be transferred to the minor no later than age:
12. A. 18
13. B. 25
14. C. 21
15. D. 30
16. 4. Your customer is about to be sent overseas for military duty and wants you to continue to serve as his representative if he becomes incapacitated during the war. Which power of attorney would be his best choice?
17. A. Unlimited
18. B. Durable
19. C. Permanent
20. D. Living
21. 5. A retirement plan in which an employer contributes into its employees’ retirement accounts on a regular basis until they cease to be employed there is called a:
22. A. Defined benefit plan
23. B. Business continuity plan
24. C. Corporate resolutions plan
25. D. Defined contribution plan
26. 6. If an investor holds a security in street name means:
27. A. The investor bought a security on margin.
28. B. The investor bought the security over the counter.
29. C. The investor is the beneficial owner of the security.
30. D. The investor’s certificate is being held by the broker.
31. 7. A DVP/RV