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All Units - Part 1 Exam

  1. Regular way settlement for Treasury notes is
    A) T+2.

    B) T+3.

    C) same day.

    D) T+1.
  2. Grace Olson owns 100 shares of XYZ stock at $50 per share when the company declared a 2:1 split. Which of the following is true?
    A) She now has fewer shares at a lower cost basis

    B) She now has more shares at a lower cost basis

    C) She now has more shares at a higher cost basis

    D) She now has fewer shares at a higher cost basis
  3. A U-5 form should be filed with the Central Registration Depository within how many days after termination of a registered representative?
    A) 10 business days

    B) 15 business days

    C) 30 days

    D) Next business day
  4. With a balloon maturity,
    A) the major portion of the principal debt is paid over scheduled seral maturity dates.

    B) interest only is paid on the serial dates with all principal paid on the final maturity date.

    C) only interest is paid on the final maturity date with principal paid on the serial dates.

    D) the major portion of the principal debt is paid on the final maturity date.
  5. 0 / 1 point

    In a defined benefit plan
    the benefit amount is fixed.
    the benefit amount is variable.
    the contribution amount is fixed.
    the contribution amount can vary.
    A) II and IV

    B) II and III

    C) I and III

    D) I and IV
  6. Which of the following positions would give an investor an unlimited loss potential?
    Short 1 IBS Jul 50 put
    Short 100 shares of IBS stock
    Short 1 IBS Jul 50 uncovered call
    Short 1 IBS Jul 50 covered call
    A) I and III

    B) II and IV

    C) II and III

    D) I and II
  7. T-bonds are delivered in
    A) book entry.

    B) physical certificates.

    C) bearer form.

    D) registered form to principal only.
  8. Match the following statement to the best expression: Government should allow market forces to determine prices of all goods and that the federal government should reduce government spending as well as taxes.
    A) Monetarist Theory

    B) Socialism

    C) Supply-side Economic Theory

    D) Keynesian Theory
  9. Under what circumstances could a broker-dealer firm share in a financial loss with a customer?
    A) If the loss is proportional to the firm's share of the investment

    B) If the firm also shares in the profits of the customer's investments

    C) If the loss was due to an error on the part of the firm

    D) If the customer is an immediate family member of the firm's CEO
  10. Bonds can typically be issued with
    A) term or balloon maturities only.

    B) term, series, or balloon maturities.

    C) term, serial, or balloon maturities.

    D) term or series maturities only
  11. To expand the overall economy, the Federal Reserve Board (FRB), acting as agent for the U.S. Treasury department, will
    A) buy securities via open-market operations, pushing interest rates down.

    B) sell securities via open-market operations, pushing interest rates down.

    C) sell securities via open-market operations, pushing interest rates up.

    D) buy securities via open-market operations, pushing interest rates up
  12. Which of the following would be recommendations?
    A) Discussing the pros and cons of a variety of account types and registrations with a prospective client

    B) Discussing the pros and cons of a variety of products and services with a prospective client

    C) Discussing the advantages of day trading with an existing client in order to generate more business for you and your firm

    D) Discussing the advantages of you firm over another firm with a prospective client
  13. A GTC order is left unexecuted at the end of the trading day on the last business day of April. Which of the following is true?
    A) The order will be automatically renewed.

    B) The order will be automatically canceled.

    C) The customer must give specific instructions to cancel the order so that it will not continue as a good working order.

    D) The order will only continue working through the opening of the next business day.
  14. Which of the following projects would be funded by general obligation (GO) bonds?
    A) Public housing

    B) Sports stadiums

    C) Public schools

    • D) Airports
  15. Your client is buying a municipal bond and wants to know when payment is due. You should tell him
    A) on the trade date.

    B) trade date plus two business days.

    C) trade date plus three business days.

    D) trade date plus one business day
  16. Which of the following oil and gas direct participation programs might be considered the riskiest?
    A) Income

    B) Raw land

    C) Combined exploratory and income

    D) Exploratory
  17. All of the following are classifications of communications with the public except
    A) sales literature.

    B) institutional communications.

    C) correspondence.

    D) retail communications.
Author
Flacko
ID
356288
Card Set
All Units - Part 1 Exam
Description
Updated

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