Unit 3 - Test Prep

Question 1

All of the below may be used to verify a customer’s identity

Answer 1

1. a valid passport
2. an unexpired DL
3. a military ID

birth cert is not a valid ID

Question 2

All of the below may be found on a customer confirmation

Answer 2

1. preference order payment flow
2. control relationship
3. disclosure of crossing stock between 2 customers and charging a commission to each side

Question 3

Customer statements are sent

Answer 3

quarterly if there are no activity in the account

Question 4

Each of the below regarding POA are true

Answer 4

1. a DPOA survives an incapacitation
2. a LPOA allows a 3rd party to trade
3. a LPOA ceases at death

Question 5

Which of the following statements is true regarding institutional communications?

Answer 5

Institutional communications do not require prior principal approval if the APs are trained in firm procedures