Last Updated: Jun 02, 2026
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1. In a monthly review of customer statements, Bubba notices that one of his firm's clients has paid for
seven purchases five days late. What does he do?
A) ascertains that extensions had been obtained under Reg T
B) decides this situation is acceptable provided payment was received before any securities were sold
C) nothing because this is not a violation provided the securities were not listed on the NYSE
D) ascertains whether the client had a sufficient bank balance on settlement date
2. The return by the receiving party of securities previously accepted for delivery or a demand by the
delivering party for return of securities that have been delivered is called:
A) rejection
B) reclamation
C) re-delivery
D) close-out
3. The cost of maintaining an investment in a mutual fund is best reflected in the:
A) net investment income
B) expense ratio
C) sales charge
D) custodial fee
4. Which of the following would be least useful to an analyst making a technical market report?
A) advances and declines
B) new highs and lows
C) predictions of recession in the economy
D) the short interest
5. Municipal bond brokers generally conduct the following:
A) both A and B
B) trade for dealer banks
C) trade for non-bank dealers
D) trade for their own account
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |
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