GREEN LIGHT EXAM 2 QUESTIONS
WITH ANSWERS
ERISA stipulates that employers with qualified plans are not permitted to exclude
employees who have worked for the employer at least one year and - Answer-are age
21 or older and have worked a minimum of 1,000 hours during the year
When illicit funds have entered the banking system undetected and appear to be
legitimate, the funds are referred to as - Answer-integrated
When a broker-dealer is not acting for its own account but is making securities
transactions for the accounts of others, the firm is acting as a - Answer-broker
The practice of selling dividends is prohibited because - Answer-the amount of the
dividend is already included in the price the customer pays for the fund
A withdrawal from an IRA may be made prior to age 59 1/2 without incurring a 10%
penalty tax in which of the following situations? - Answer-to pay for the college tuition of
the investor's daughter
Broker-dealers must provide a privacy notice to every consumer - Answer-before
disclosing nonpublic, personal information
Which of the following statements is TRUE concerning filing a registration application
with FINRA? - Answer-It is a violation for an application to be incomplete or misleading
A security with a high beta - Answer-outperforms the market when its gaining and
underperforms the market when its losing
Under the New Issue Rule, all of the following persons are defined as restricted
persons, EXCEPT - Answer-the brother of a registered person of a broker-dealer who
has an account with a different broker-dealer
When an ETF is purchased, what is the transaction cost paid by the client? - Answer-a
commission
The Founders Income Fund has declared a dividend that is payable to stockholders of
record on Thursday, May 29. This mutual fund's ex-dividend will typically be on -
Answer-the date that is set by the fund or its principal underwriter (sponsor)
WITH ANSWERS
ERISA stipulates that employers with qualified plans are not permitted to exclude
employees who have worked for the employer at least one year and - Answer-are age
21 or older and have worked a minimum of 1,000 hours during the year
When illicit funds have entered the banking system undetected and appear to be
legitimate, the funds are referred to as - Answer-integrated
When a broker-dealer is not acting for its own account but is making securities
transactions for the accounts of others, the firm is acting as a - Answer-broker
The practice of selling dividends is prohibited because - Answer-the amount of the
dividend is already included in the price the customer pays for the fund
A withdrawal from an IRA may be made prior to age 59 1/2 without incurring a 10%
penalty tax in which of the following situations? - Answer-to pay for the college tuition of
the investor's daughter
Broker-dealers must provide a privacy notice to every consumer - Answer-before
disclosing nonpublic, personal information
Which of the following statements is TRUE concerning filing a registration application
with FINRA? - Answer-It is a violation for an application to be incomplete or misleading
A security with a high beta - Answer-outperforms the market when its gaining and
underperforms the market when its losing
Under the New Issue Rule, all of the following persons are defined as restricted
persons, EXCEPT - Answer-the brother of a registered person of a broker-dealer who
has an account with a different broker-dealer
When an ETF is purchased, what is the transaction cost paid by the client? - Answer-a
commission
The Founders Income Fund has declared a dividend that is payable to stockholders of
record on Thursday, May 29. This mutual fund's ex-dividend will typically be on -
Answer-the date that is set by the fund or its principal underwriter (sponsor)
