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Knowledge Check - Acronyms + Definitions

Total questions: 30

Worksheet time: 17mins

Name
Class
Date
1.

What does ACATS stand for?

a)

Automated Customer Account Transfer Service

b)

Account Customer Automated Transfer System

c)

Automated Customer Account Transfer System

d)

Automated Client Account Transfer Service

2.

What is a 401K?

a)

a retirement plan for certain employees of public schools, certain tax-exempt organizations, and certain ministers

b)

a profit sharing retirement plan that allows employees to make elective salary deferrals while avoiding current taxes on that portion of their incomes

c)

an employer funded retirement plan that allows employers to make pre-tax contributions into a participant’s (eligible employee’s) IRA. Distributions from the IRAs can occur at any time at the participants request and are considered taxable income when distributed. 

d)

a defined contribution plan featuring a fixed employer contribution. This pre-tax contribution from the employee is mandatory and established by the plan sponsor each year.

3.

Which of the following define an account type?

a)

The primary identifier for ownership of an account.

b)

The owner information of an account.

c)

A periodic summary of account activity with a beginning date and an ending date

d)

Indicates the account’s purpose, such as an individual, joint, corporation, or retirement.

4.

The owner information of an account is known as the?

a)

Account Registration

b)

Account Number

c)

Account Type

d)

Account Statement

5.


Select the abbreviation for annuity

a)

AN

b)

ANT

c)

ANN

d)

ANNY

6.

Which party is entitled to receive benefits from an annuity?

a)

Shareholder

b)

Annuitant

c)

Beneficiary

d)

Custodian

7.

A person designated as the recipient of assets under a will, trust, insurance policy, etc. after an individual passes away is known as the... ?

a)

Annuitant

b)

Custodian

c)

Advisor

d)

Beneficiary

8.

What does the following acronym stand for - R/T:

a)

Retransmit

b)

Resubmit

9.

What does the following acronym stand for - R/S:

a)

Resubmit

b)

Retransmit

10.

Name the product - this is a financial contract in the form of an insurance product according to which a seller (issuer), typically a financial institution such as a life insurance company, makes a series of future payments to a annuitant in exchange for the immediate payment of a lump sum or a series of regular payments

(a)  

11.

What financial instrument is similar to a savings account, but has a specific, fixed term (often monthly, three months, six months, or one to five years), and, usually, a fixed interest rate?

(a)  

12.

What does BIN stand for?

a)

Beneficiary Initiation Notice

b)

Branch Identification Notice

c)

Broker Identification Number

13.

What types of securities registered in book entry form are registered in the name of the investor directly on the transfer agent's books?

a)

Certificate Deposit

b)

Common Stock

c)

DRS

d)

Mutual Funds

14.

Which is the correct abbreviation for Custodian?

a)

CSN

b)

CDSN

c)

CUSTDN

d)

CSDN

15.

What does the acronym CUSIP stand for?

a)

Customer on Uniform Security Identification Procedures

b)

Committee on Uniform Security Identification Procedures

c)

Client in Uniform Security Identification Procedures

d)

Customer on Uniform Security Identification Policies

16.

Which of the below defines one that guards or maintains; one entrusted with guarding and keeping property or records or with custody or guardianship

a)

Customer

b)

Client

c)

Conservator

d)

Custodian

17.

C2018200000123 is an example of what?

a)

CUSIP

b)

DTCC Participation Number

c)

Control Number

d)

ACATS BIN

18.

Which of the below describes a new account at the mutual fund company or a subaccount in Advisor Central/BNY for omnibus CUSIPs. This is used for Mutual Fund transfers.

a)

Contract

b)

CUSIP

c)

Clearing Number

d)

B50

19.

Which of the following is a deliver residual that has passed the 6 month residual sweep time frame?

a)

AGED RCR

b)

DEL RCR

c)

REC RCR

d)

RCL RCR

20.

Which is known as the process of updating the registered representative or agent on a direct investment product, most commonly a mutual fund or annuity?

a)

Agent Change

b)

Change of Dealer

c)

Custodian change

d)

LOA

21.

When assets are sold and the proceeds are paid out as cash, this is known as

a)

Loan

b)

Liquidation

c)

Mass account transfer

d)

Cost basis

22.

This type of transfer consists of the transfer of ownership of an asset (from one firm to another)

a)

Loan

b)

Liquidation

c)

Mass account transfer

d)

Cost basis

23.

The other financial institution that is associated with the transfer is oftern referred to as the:

a)

Carrier

b)

Clearing Company

c)

other company

d)

Contra Firm

24.

True or False?

A contract number is the primary identifier for ownership of an annuity. It may consist of letters and/or numbers

a)

True

b)

False

25.

True or False?

The original value of an asset for tax purposes (usually the purchase price), adjusted for stock splits, dividends and return of capital distributions. This value is used to determine the capital gain, which is equal to the difference between the asset's cost basis and the current market value is known as Cost basis

a)

True

b)

False

26.

Abbreviation for "deliver"




(a)  

27.

ACATS transfer type: Which of the below is the acronym to describe a request to transfer out a specific number of shares or securities from a client's account.

a)

PTR

b)

PTF

c)

PTD

28.

ACATS transfer type: Which of the below is the acronym to describe a request to transfer specific assets into a client's account from another firm.

a)

PTR

b)

PTF

c)

PTD

29.

ACATS transfer type: Which of the below is the acronym to describe a request to transfer shares of a specific mutual fund into a client's account from a mutual fund company, or request to transfer out shares of a specific mutual fund to a client's account held direct at the mutual fund company.

a)

PTR

b)

PTF

c)

PTD

30.

Which of the below is the commonly used acronym for a form with a set of transfer instructions that provides certain information and identifies the firm currently holding the assets (the “carrying firm”)

a)

LOA

b)

TIF

c)

FCAT

d)

DFA