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4.02 Financial Planning 2022

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Violators of the SEC rules of the Securities Exchange Act of 1934 are subject to criminal penalties. The maximum penalty for an individual is:

a)

$100,000

b)

$500,000

c)

$1,000,000, imprisonment for 5 years, or both

d)

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

2.

If an investor requests additional information about a trade confirmation that he/she received, the requested information must be furnished to him/her within:

a)

thirty days of the request

b)

five business days of the request

c)

five business days after the data of the transaction

d)

fifteen business days after the date of the transaction

3.

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:

a)

one year

b)

three years

c)

five years

d)

indefinitely

4.

The maximum penalty that can be imposed on a business entity for false or misleading information on any SEC report or application is:

a)

$1,000

b)

$100,000

c)

$200,000

d)

$250,000

5.

A firm that is required to start tape recording their telemarketing activities must continue to do so for what period of time?

a)

1 year

b)

3 years

c)

5 years

d)

indefinitely

6.

A private securities transaction exists when a representative:

a)

has a joint account with a family member

b)

makes a trade from his personal account

c)

is engaged with an outside business

d)

is selling away

7.

Which individuals are required to register with FINRA?

a)

those who are associated with a member and are to function as Assistant Representatives-Order Processing

b)

those who are not actively engaged in the investment banking or securities business

c)

those who impact securities transactions only on the floor of an exchange

d)

those whose sole functions are limited to clerical duties

8.

The Sarbanes-Oxley Act of 2002 is legislation that was passed in response to:

a)

tax settlements

b)

collection activities

c)

investment options

d)

accounting scandals

9.

One of the main provisions of the Gramm-Leach-Bliley Act requires financial institutions to:

a)

protect the privacy of consumer personal monetary information

b)

provide consumers with information about their credit rating

c)

offer credit to any individual who is currently employed

d)

assist individuals who have had their identity stolen

10.

Where was Mrs. Massengill born?

a)

North Carolina

b)

Alabama

c)

Michigan

d)

Georgia