Question 1

At a prospecting event, a registered representative (RR) provides cards for attendees to write down their contact information if they want to have a follow-up meeting with her. Which of the following actions should the RR take in this situation to comply with telemarketing rules?

Options :

A : Obtain the broker-dealer-s approval before making a call

B : Limit contact with prospects to between 9 a.m. and 9 p.m.

C : Contact the prospects at will since they provided express written consent

D :

Prior to contacting the prospects, check all of the names on the cards to make sure they are not on the National Do Not Call Registry

Answer: D

Question 2

Which of the following terms describes failure to honor a firm quote?

Options :

A : Freeriding

B : Backing away

C : Interpositioning

D : Market manipulation

Answer: B

Question 3

A registered representative must complete which of the following activities when entering a discretionary trade?

Options :

A : Only exercise discretion over market orders

B : Indicate that discretion was exercised on the order ticket to be identified for supervisory review

C : Obtain authorization from the customer before each discretionary order is entered

D : Receive instructions from the customer as to the price at which to buy or sell a security

Answer: B

Question 4

A broker-dealer (BD) creates a marketing postcard that includes a statement regarding FINRA's endorsement of the BD. Which of the following responses is true?

Options :

A : The statement regarding FINRA-s endorsement is not permissible.

B : The statement is permissible if a principal of the BD approves it in writing prior to use.

C : The statement is permissible if the statement is approved in writing by FINRA prior to use.

D : The statement is permissible if the postcard does not discuss specific investment opportunities.

Answer: A

Question 5

Which of the following statements best describes an American Depositary Receipt (ADR)?

Options :

A : ADRs trade like U.S. issues and are quoted in U.S. dollars.

B : ADRs trade like U.S. issues and are quoted in foreign currency.

C : ADRs represent shares of a U.S. security held in foreign commercial banks.

D : ADRs represent shares of a foreign security held in foreign commercial banks.

Answer: A

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