Financial Planning 1 - Final Exam Review Part 4

What is the maximum penalty for an individual who violates the SEC rules of the Securities Exchange Act of 1934 are subject to criminal penalties.

• $50,000

•  

  $1,000,000, imprisonment for 10 years, or both.

•  

  $100,000.

A business can protect itself from shoplifters by:

• using closed-circuit television.

• having several entrances and exits.

• stocking goods on tall shelf units.

One way of protecting data from unauthorized modification and/or corruption at rest and during transmission among information systems is to implement:

• encryption.

• network controls.

• a firewall.

At his company, Paul is responsible for making sure the organization is complying with its privacy policy. Which privacy principle is Paul fulfilling?

• accountability

• fairness

• collection limitation

If an investor requests additional information about a trade confirmation that he/she received

• thirty days of the request.

• fifteen business days after the date of the transaction.

• five business days of the request.

Which scenario is an example of point-of-sale fraud?

• competitors accessing computer files

• employees undercharging their friends

How many credit reporting agencies are there?

• two

• three

• four

The security measure which involves locking all entrances that contain various equipment and workstations is called:

• encryption.

• physical safeguards.

Thomas, an employee, has always been a pessimistic person, but his attitude has been very negative lately. He obviously has an extreme dislike for the new manager, and recently, his favorite topics of conversation have been guns and knives. Knowing all this, what should Thomas's coworkers do?

• call the local sheriff or police chief to discuss Edward's mood

• share this information with the supervisor or the HR department

During a sales meeting with a customer, a registered representative states that he is so confident about the investment he will reimburse the customer for any losses. This arrangement is:

• commingling and a violation of FINRA rules.

• a violation of SEC rules because the registered representative guaranteed the customer against loss.