WorksheetsFPI Unit 4 4.01/02
Total questions: 18
Worksheet time: 11mins
One of the main provisions of the Gramm-Leach-Bliley Act requires financial institutions to:
protect the privacy of consumer personal monetary information
provide consumers with information about their credit rating
offer credit to any individual who is currently employed.
assist individuals who have had their identity stolen
The Sarbanes-Oxley Act of 2002 is legislation that was passed in response to:
tax settlements
collection activities
investment options
accounting scandals
A private securities transaction exists when a representative:
has a joint account with a family member.
makes a trade from his personal account.
is engaged with an outside business
is selling away
A firm that is required to start tape recording their telemarketing activities must continue to do so for what period of time?
one year
three years
five years
indefinitely
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:
permissable if the customer is a relative
commingling and a violation of FINRA rules
permissable because the representative did not promise the customer a profit.
a violation of SEC rules because the registered representative guaranteed the customer against loss.
The maximum penalty that can be imposed on a business entity for false or misleading information on any SEC report or application is
$1,000.
$100,000
$200,000.
$250,000.
If an investor requests additional information about a trade confirmation that he/she received, the requested information must be furnished to him/her within:
thirty days of the request
five business days of the request
five business days after the date of the transaction
fifteen business days after the date of the transaction.
Violators of the SEC rules of the Securities Exchange Act of 1934 are subject to criminal penalties. The maximum penalty for an individual is:
$100,000.
$500.00
$1,000,000, imprisonment for 5 years, or both
$1,000,000, imprisonment for 10 years, or both
As the size and power of U.S. businesses have grown over time, the federal government's involvement in the U.S. economy has:
increased
decreased
stayed the same
became unimportant
One of the reasons that has caused government’s role in business to expand is that
costs of production have continued to increase.
competition in the marketplace has increased.
products have become very technical.
people’s attitudes have changed.
When the government buys wheat to keep the price high enough for farmers to make a profit, it is:
encouraging the production of wheat
encouraging energy conservation
industrializing the economy
using price supports
The government can prevent unqualified persons from operating a business by
refusing to grant them a license
closing their bank accounts
helping their competitors
assessing extra taxes
The two main sources of revenue used to pay the costs of government regulation are:
taxpayers and nontaxpayers.
government and industry
taxes and borrowing
business and labor
One way in which the government protects private property is by providing:
local government programs
Federal Reserve banks
fire insurance policies
patents or copyrights.
One of the positive effects that government regulation has on companies is that many of the laws are intended to provide companies with:
choices
obstacles
protections
restricitons
Providing compensation to the unemployed and aid to dependent children are ways that the government intervenes in the economy to:
manage yearly spending
protect private property
improve public welfare
set safety standards
Which is a public good that is provided by government?
interstate highways
marketing research
new automobiles
private schools
Which regulatory agency would be concerned with price fixing and unfair competitive prices?
Consumer Product Safety Commission
Federal Communications Commission
National Labor Relations Board
Federal Trade Commission
