SERIES 53 TEST 2

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medmikebb717
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97975
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SERIES 53 TEST 2
Updated:
2011-09-01 23:54:36
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SERIES
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REGISTERED MUNICIPAL PRINCIPAL
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  1. A MUNICIPAL DEALER PROVIDES ADVICE ON THE STRUCTURE, TIMING AND TERMS OF A GENERAL OBLIGATION BOND OFFERING FOR A MUNICIPALITY. THE DEALER HAS BEEN ENCOURAGED BY THE MUNICIPALITY TO PARTICIPATE IN A NEFOTIATED REVENUE BOND OFFERING FOR THAT MUNICIPALITIES WATER AUTHORITY. UNDER MSRB RULES:
    THE DEALER MAY PARTICIPATE
  2. UNDER WHICH OF THE FOLLOWING SITUATIONS DOES A CONTROL RELATIONSHIP EXIST:

    I A DEALER IS CONTROLLED BY A PARTY RESPONSIBLE FOR DEBT SERVICE ON AN ISSUE

    II A DEALER CONTROLS THE PARTY RESPONSIBLE FOR DEBT SERVICE ON AN ISSUE

    III AN OFFICER OF AN ISSUER SITS ON THE DELAERS BOARD OF DIRECTORS

    IV A BANK DEALER EXECUTES A LETTER OF CREDIT WITH AN ISSUER WHICH IS CONDITIONED UPON RECEIPT OF DEPOSIT BALANCES FROM THE ISSUER
    • A III ONLY
    • B I AND II
    • C I,II,III
    • D I,II,III,IV
  3. ALL OF THE FOLLOLWING ACTIVITIES OF A BANK DEALER ARE SUBJECT TO MSRB RULES EXEPT:

    A PROCESSING AND CLEARANCE OF MUNI TRANSACTIONS

    B FIDUCIARY ACTIVITIES

    C FINANCIAL ADVISORY SERVICES

    D MUNI RESEARCH ACTIVITIES
    B
  4. THE RESPONSIBILITY OF A MUNI DELAER WIHT RESPECT TO CUSIP NUMBERS INCLUDES ALL OF THE FOLLOWING EXCEPT

    A APPLYING FOR THE CUSIP NUMBER ASSIGNMENT

    B ADVISING THE ISSUER IN A COMPETITIVE BID OFFERING TO APPLY FOR A NEW CUSIP NUMBER ASSIGNMENT

    C AFFIXING THE NEW CUSIP NUBMER TO THE CERTIFICATES

    D REAPPLYING FOR A NEW CUSIP NUMBER IF AN OUTSTANIDNG ISSUE HAS BEEN, IN PART MATERIALLY ALTERED
    B
  5. PRIOR TO SETTLEMENT OF THE SYNDICATE ACCOUNT THE MANAGER FURNISHES ITS MEMBERS WITH AN ITEMIZED STATEMENT DISCLOSING ALL SYNDICTE EXPENSES. THE STATEMENT MAY INCLUDE A MISC EXPENSE ITEM PROVIDED THAT:

    I THE AMOUNT IS NOT DISPROPORTIONATELY LARGE IN RELATION TO TOTAL EXPENSES
    II THE AMOUNT DOES NOT EXEED 10% OF TOTOAL EXPENSES
    III THE MANAGER RECEIVES WRITTEN APPROVAL FROM THE SYNDICATE MEMBERS TO DO SO
    IV THE AMOUNT INCLUDES ONLY THOSE ITEMS THAT ARE NOT CATEGORIZED ELSEWHERE IN THE STATEMENT

    A I AND III
    B I AND IV
    C II AND III
    D II AND IV
    B
  6. THE OKISH SEWER DISTRICT ISSUED 200MIL OF REV BONDS, MATURING SERIEALLY OVER THE NEXT 25 YEARS. 20MIL MATURES WITHIN 2 YEARS FROM THE DATE OF SALE. WHAT STATEMENTS ARE TRUE:

    I THE SYNDICATE MANAGER PAYS THE UNDERWRITING ASSESEMENT FEE TO THE MSRB ON BEHAF OF THE MEMBERS
    11 EACH MEMBER PAYS UNDERWRITING ASSESMENT TO THE MSRB BASED ON PERCENTAGE OF PAARTICIPATION
    III THE ASSESMENT IS 3 CENTS PER BOND ON THE 200MIL ISSSUE
    IV THE ASSESMENT IS 3 CENTS PER BOND ON 180 MIL AND 1 CENT PER BOND ON 20 MIL

    A I AND III
    B I AND IV
    C II AND III
    D II AND IV
    A
  7. ALL OF THE FOLLOWING RULES APPLY TO BANK DEALERS AND NON BANK DEALERS EXEPT:

    A RECORD KEEPING
    B FIDELITY BONDING
    C APPRENTICESHIP
    D UNDERWRITTING ASSESEMENT
    B
  8. UDNDER MSRB RULES WHICH OF THE FOLLOWING DISCLOSURES MUST BE MADE TO CUSTOMERS WHO BUY NEW ISSSUE NEGOTIATED OFFERINGS?

    I THE GROSS SPREAD
    II THE AMOUNT OF ANY FEES RECEIVED BY THE DEALER ACTING AS AGENT FOR THE ISSUER
    III THE INITIAL OFFERING PRICES OF EACH SERIAL MATURITY
    IV NAMES OF THE SYNDICATE MEMBERS
    I, II AND III
  9. WHICH OF THE FOLLOWING STATEMENTS ARE TRUE FOR BOTH BANK DEALERS AND NON BANK DEALERS:

    I EACH MUST KEEP BOOKS AND RECORDS IN ACCORDINCE WITH MSRB RULES
    II EACH MUST MEET THE FIDELITY BONDING REQUIREMENTS OF RULE G-6
    III EACH MUST HAVE AT LEAST 1 FINANCIAL AND PERATIONS PRINCIPAL
    IV EACH MUST HAVE AT LEAST 1 MUNI PRINCIPAL
    I AND IV
  10. UNDER THE PROVISIONS OF MSRB RULE G-38, AN INDIVIDUAL THAT IS NOT ASSOCIATED WITH A MUNI FIRM

    A MAY SOLICTIT THE MUNI BIZ OF AN ISSUER FOR THAT MUNI FIRM IF THERE'S A WRITTEN AGREEEMENT THAT DETAILS THE WORKTO BE PERFORMED AND THE COMPENSATION TO BE PAID
    B MAY SOLICIT THE MUNI SEC BIZ OF AN ISSUER IF A SOLIVITORS AGREEEMENT IS FILED WITH THE MSRB
    C MAY SOLICIT THE MUNI SEC BIZ O THE ISSUER IF FORM G-38 IS FILED WITH THE MSRB
    D MAY NOT BE COMPENSATED FOR SOLICITIING THE MUNI SECURITIES BUSINESS OF AN ISSUER
    D
  11. MSRB RULE G-32 REQUIRES THAT THE OFFICIAL STATEMNET BE FILED WITH EMMA:

    I ON THE DAY OF RECEIPT FROM TH ISSUER
    II WITHIN 1 BUSINESS DAY OF RECEIPT FROM THE ISSUER
    III THE CLOSING DATE
    IV 1 BUSINESS DAY FOLLOWING THE CLOSING DATE

    A I BUT NO LATER THAN III
    B I BUT NO LATER THAN IV
    C II BUT NO LATER THAN III
    D II BUT NO LATER HTAN IV
    C
  12. WHICH OF THE FOLLOWING ACTIVITIES OF A BANK DEALER WOULD BE OUTSIDE THE SCOPE OF MSRB RULES?

    A CLEARANCE OF MUNI SECURITIES
    B PUBLIC COMMUNICATION WITH INVESTORS REGARDING MUNIS
    C PURCHASES OF MUNIS WHILE ACTING IN A FIDUCIARY CAPACITY
    D FINANCIAL ADVISORY SERVICES RENDERED TO ISSUERS OF MUNIS
    C
  13. WHICH OF THE FOLLOWING STATEMENTS ARE TRUE REGARDIGN DISCLOSURE OF CALL PROVISIONS ON CUSTOMER CONFIRMATIONS?
    I THE DATE FO THE NEAR-TERM "IN WHOLE" CALL AND CALL PRICE MUST BE DISCLOSED IF THE BOND IS SOLD AT A PREMIUM
    II THE DATE OF THE NEAR TERM IN HWOLE CAL AND CALL PRICE MUST BE DISCLOSEDIF THE BOND IS SOLD AT A DISCOUNT
    III FOR RECENURE BONDS, THE EXISTENCE OF ANY CALAMITY CALL PROVISIONS MUST BE DISCLOSED
    IV FOR REVENUE BONDS THE EXISTENCE OF ANY EXRAORDINARY MANDATORY SINKING FUND CALLLS MUST BE DISCLOSED

    A I ONLY
    B I AND II
    C III AND IV
    D I, II, III, IV
    B
  14. A BANK DEALER ISSUES A LETTER OF CREDIT TO AN ISSUER IN ORDER TO SECURE PRINCIPAL AND INTEREST PAYMENTS ON A NEW BOND ISSUE. WHICH
    STATEMENTS ARE TRUE REGARDING DISCLOSURE OF THE EXISTENCE OF THE LETTER OF CREIDIT?

    THE BANK IS CONSIDERED TO BE AN OBLIGOR WITH RESPECT TO DEBT SERVICE
    I THE BANK IS NOT CONSIDERED TO BE AN OBLIGOR WITH RESPECT TO DEBT SERVICE
    III A CONTROL RELATIONSHIP EXISTS THAT MUST BE DISCLOSED
    A CONTROL RELATIONSHIP DOES NOT EXIST SO NO DISCLOSURE IS REQUIRED

    A I AND III
    B I AND IV
    C II AND III
    D II AND IV
    B
  15. BABS ARE:

    I SUBJECT TO FEDERAL INCOME TAX
    II EXEMPT FORM FEDERAL INSOME TAX
    III ISSUED IN THE TAXALE BOND MARKET
    IV ISSUED IN THE TAX-EXEMPT BOND MARKET

    A I AND III
    B I AND IV
    C II AND III
    D II AND IV
    A
  16. UNDER MSRB RULES IF A PURCHASER WISHES TO CLOSE-OUT AN
    UNCOMPLEETEDTRADE, WHICH STATEMENETS ARE TRUE?

    I THE PURCHASER CAN NOTIFY THE SELLER BY TELEPHONE, OF HIS
    INTENTION TO CLOSE-OUT NO EARLIER THAN THE 5TH BIZ DAY AFTER
    SETTLEMETN
    II TELEPHONE NOTICE MSUT BNE IMMEDIATELY FOLLOWED BY WRITTEN
    NOTICE
    III THE DEADLINE FOR DELIVERY CAN BE NO EARLIER THAN THE 10TH
    BUSINESS DAY FOLLOWING TELEPHONE NOTICE
    IV THE DEADLINEFOR DELIVERY CAN BE NO EARLIER THAN THE 10TH
    BUSINESS DAY FOLLOWING WRITTEN NOTICE

    A I AND III
    B I AND III
    C I,II,III
    D I,II,IV
    C
  17. IF A FINAL OFFICIAL STATEMENT IS BEING PREPARED FOR A 20MM GO BOND ISSUE BUY IS NOT AVAILABLE TO SELLTE CUSTOMER TRANSACTIONS WHICH STATEMENT IS TRUE?

    A VIOLATION OF G-32 HAS OCCURED
    B A VIOLATION OF G-32 HAS NOT OCCURED AS LONG AS THE DEALER DELIVERS A PRELIMINARY OFFICIAL STATMENT PRIOR TO SETTLENMENT DATE
    C A VIOLATION OF G32 HAS NOT OCCURRED AS LONG AS THE DEALER DELIVERS A FINAL OFFICIAL STATEMENT AS SOON AT IT BECOMES AVAILABLE
    D A VIOLATION OF F32 HAS NOT OCCURRED AS LONG AS THE DEALER DELIVERS A
    RPRELIMINARY OFFICIAL STATEMENT AT, OR PRIOR TO SETLEMENT DATE AND THE
    FINAL OFFICIAL STATEMENT AS SOON AS IT BECOMES AVAILABLE
    A
  18. UNDER MSRB RULED A PURCHASER MAY CLOSE OUT A FAIL IN WHICH OF THE FOLLOWING WAYS:

    I BY PURCHASING THE SECURITIES IN THE OPEN MARKET
    II BY ACCEPTING EQUIVALENT SECURITIES FROM THE SELLER
    III BY REQUIRING THE SELLER TO REPUSCHASE THE SECURITIES
    IV BY PURCHASING THE SECURITIES FROM ANY CUSTOMER WHO HAS A LONG POSITION IN THAT SECURITY

    A I AND II
    B III AND IV
    C I II III
    D I II III IV
    D
  19. A CUSTOMER WHO IS A RESIDENT OF RHODE ISLAND WANTS TO INCEST IN A COLLEGE SAVINGS PLAN OFFERED BY NEW YORK. THE MSRB REQUIRED THAT WHICH STATMENT BE MADE TO THE CUSTOMER?

    A STATE TAX BENEFITS AVAILABLE IN RHODE ISLAND MAY NOT BE AVAILABLE IF YOU INCEST IN NEW YORKS PLAN.
    B A 10% PENALTY IS IMPOSED ON FUNDS THAT ARE NOT USED TO PAY FOR THE BENEFICIARY'S HIGHER EDUCATION
    C INVESTMENTS IN THE PLAN ARE MADE WITH AFTER TAX DOLLARS FOR FEDERAL TAX PURPOSED
    D WITHDRAWS FORM THE PLAN TO PAY QUALIFIED EDUCATION EXPENSES ARE TAX-FREE AT THE FEDERAL LEVEL
    A
  20. IF CONFIRMATIONS BETWEEN DEALERS DO NOT COMPARE DUE TO A SMALL MONEY DIFFERENCE THE SELLERS PRIVE PREVAILS AND THE TRADE SETTLES AS SCHEDULED. UNDER MSRB RULES THE PARTIES MUST RECONCILE THE MONEY DIFFERENCE:

    A PRIOR TO SETTMENT DATE
    B WITHIN 2 BUSINESS DAYS OF SETTLEMENT DATE
    C WITHIN 5 BUSINESS DAYS OF SETTLEMENT DATE
    D WITHIN 10 BUSINESS DAYS OF SETTMENT DATE
    D
  21. UNDER MSRB RULES WHICH OF THE FOLLOWING WOULD BE CONSIDERED TO BE CUSTOMERS OF A MUNI FIRM?

    I AN ISSUER THAT IS BUYING SECURITITES IN THE SECONDARY MARKET
    II A PENSION FUND MANAGER BUYING FOR HIS PERSONAL ACCCOUNT
    III A DEALER BUYING FOR THE FIRM'S TRADING ACCOUNT
    IV A DEALER ACTING AS AGENT FOR AN INDIVIDUAL

    A I AND II
    B I AND IV
    C II AND IV
    D II III IV
    A
  22. WHICH OF THE FOLLOWING EXPENSES INCURED BY THE SYNDICATE MANAGER MUST BE DISCLOSED TO THE MEMBERS PRIOR TO THE DATE FO SALE?

    I DISCRETIONARY FEES FOR CLEARANCE COSTS
    II MANAGEMENT FEES
    III PRINTING AND LEGAL FEES
    IV SOLICITATION COSTS

    A II ONLY'
    B I AND II
    C II AND III
    D III AND IV
    B
  23. AFTER EXECUTING A BUY IN OR SELL OUT THE EXECUTING PARTY MUST:

    I IMMEDIATELY NOTIFY THE FAILING PARTY BY TELEPHONE
    II IMMEDIATELY THEREAFTER CONFIRM SUCH NOTICE IN WRITING
    III WITHIN 2 BUSINESS DAYS FILE THE APPROPRIATE FORMS WITH THE MSRB
    IV WITHIN 2 BUSINESS DAYS FILE THE APPROPRIATE FORM WITH THE DEALERS DESIGNATED EXAMINAING AUTHORITY

    A I AND II
    B I AND III
    C III AND IV
    D I II III IV
    A
  24. UNDER MSRB RULES ALL OF THE FOLLOWING ACCOUNTS CARRIED BY A
    MUNICIAPL FIRM WOULD BE CONSIDERED TO BE CUSTOMERS EXCEPT:

    A MUTUAL FUND
    B OFFICER OF THAT MUNI FIRM
    C OFFICER OF A NON-DEALER BANK
    D INSTITUTION
    B
  25. UDNER MSRB RULE G-12 WHICH OF THE FOLLOWING STATEMENTS ARE TRUE REGARDING RECLAMATION?

    I A WRITTEN NOTICE OF RECLAMATION MUST BE ACCOMPANIED BY A COPY OF THE DELIVERY TICKET
    II THE SELLER UPON RECEIPT OF A WRITTEN DEMAND FOR RECLAMATION, MSUT RECLAIM THE SECURITITES AS PROMPTLY AS POSSIBLE
    III DEMAND FOR RECLAMATION WILL NOT VOID THE TRANSACTION
    IV THERE ARE TIME LIMITS WITHIN WHICH SECUTIITES MSUT BE RECLAIMED

    A I AND II
    B II AND IV
    C I II IV
    D I II III IV
    D
  26. A DEALER HAS A CONTROL RELATIONSHIP WITH AN ISSUER. IF AN ASSOCIATED PERSON WISHES TO PURCHASE THESE SECURITIES FOR A DISCRETIONARY ACCOUNT WHICH STATEMENT IS TRUE?

    A THE PURCHASE OF THESE SECURITIES IS PROHIBITED IN DISCRETIONARY ACCOUNTS.
    B THE PURCHASE OF THESE SECURITIES IS PROHIBITED UNLESS SPECIFICALLY AUTHORIZED BY THE CUSTOMER
    C THE PURCHSE OF THESE SECURITIES IS PROHIBITED UNLESS THE MUNI PRINCIPAL APPROVES THE ORDER PRIOR TO ENTRY
    D THE PURCHASE OF THESE SECURITIES IS PERMITTED AS LONG AS THEY ARE SUITABLE FOR THE ACCCOUNT
    B
  27. WHICH OF THE FOLLOWING PRINCIPALS CAN BE DESIGNATED AS RESPONSIBLE FOR THE MAINTENANCE AND PRESERVATION OF A MUNICIPAL FIRM'S BOOKS AND RECORDS?

    I MUNI PRINCIPAL
    II GENERAL SECURITIES PRINCIPAL
    III MUNI SALES PRINCIPAL
    IV FINANCIAL ADN OPERATIONS PRINCIPAL

    A IV
    B I AND II
    C I II IV
    D I II III AND IV
    C
  28. DURING THE EXECUTION PERIOD THE PURCHASER RECEIVES NITOCE FROM THE SELLER THAT THE SECURITEIES WILL BE DELIVERED WITHIN 2 BUSINESS DAYS. UNDER MSRB RULES WHICH STATEMENTS ARE TRUE?

    I THE PURCHASER MUST SUSPEND THE INTENDED CLOSE OUT FOR 2 BUSINESS DDAYS
    II THE PURCHASER HA THE OPTION OF SUSPENDING THE INTENDED CLOSE OUT FOR 2 BUSINESS DAYS
    III IF SUSPENDED THE EXECUTION PERIOD IS EXTENDED BY 2 BUSINESS DAYS
    IV IF SUSPENDED THE EXECURITON PERIOD WILL BE EXTENDED UPON TELEPHONE APPLICATION TO THE MSRB

    A I AND III
    B I IV
    C II AND III
    D II AND IV
    A
  29. UNDER MSRB RULES SECURITIES DELIVERY EXPENSES ARE PAID BY THE

    A BUYER
    B SELLER
    C BUYER OR SELLER AS AGREED AT THE TIME OF THE TRADE
    D TRANSFER AGENT
    B
  30. CONTINUING EDUCATION ADMINISTERED BY THE MEMBER FIRM MUST BE COMPLETED

    I BY EACH EMPLOYEE IF THE FIRM
    II BY EACH ASSOCIATED PERSON OF THE MEMBER FIRM
    III ANNAULLY
    IV AFTER BEING EMPLOYED FOR 2 YEARS AND EVERY 3 YEARS THEREAFTER

    A) I AND III
    B) I AND IV
    C) II AND III
    D) II AND IV
    C
  31. UNDER MSRB RULE A-13 WHICH OF THE FOLLOWING STATEEMENTS ARE TRUE REGARDING UNDERWRITING ASSESSMENTS
    I ASSESSMENTS ARE PAYABLE TO THE MSRB WITHIN 30 DAYS OF INVOICE DATE
    II ALL PRIMARY MUNI OFFERINGS ARE SUBJECT TO ASSESSMENT
    III ASSESSMENTS ARE PAYABLE BY THE MANAGER ON BEHALF OF THE SYNDICATE
    IV ASSESSMENTS ARE APPLIED AS AS CREDIT AGAINST ANNUAL DUES

    A) I AND III
    B) II AND III
    C) I, II, III
    D) I,II,IV
    A
  32. UNDER MSRB RULES ,ALL MONIES DUE AS THE RESULT OF A BUY-IN MUST BE PAID:

    A) PROMPTLY
    B) WITHIN 2 BUSINESS DAYS OF EXECUTION
    C) WIHTIN 5 BUSINESS DAYS OF EXECUTION
    D) WITHIN 10 BUSINES DAYS OF EXECUTION
    D
  33. UNDER MSRB RULES, ALL OF THE FOLLOWING MUST BE RECLAIMED WITHIN 1 BUSINESS DAY OF DELIVERY EXCEPT:
    A) COUNTERFEIT SECURITIES
    B) MISSING COUPONS
    C) MUTILATED COUPONS
    D) MISSING LEGAL OPINION
    A
  34. A SYNDICATE MEMBER SUBMITS A GROUP ORDER TO THE MANAGER. UNDER MSRB RULES:
    I THE DEALER MUST DISCLOSE THE IDENTITY OF THE PERSON FOR WHOM THE ORDER IS SUBMITTED
    II THE MANAGER MSUT DISCLOSE TO OTHER SYNDICATE MEMBERS, THE IDENTITIY OF THE PERSON FOR WHOM A GROUP ORDER WAS SUBMITED, IF SECURITIES HAVE BEEN ALLLOCATED TO THAT ORDER
    III IF SECURITIES ARE ALLOCATED TO THE ORDER, THE ALLOCATIONS MUST COVER THE ENTIRE AMOUNT OF THE ORDER
    IV GROUP ORDERS HAVE PRIORITY OVER PRE-SALE ORDERS

    A) I AND II
    B) I AND III
    C) I , II ,III
    D) II, III ,IV
    A
  35. IN A COMPETITIVE BID OFFERING THE DATE OF SALE

    I IS THE DATE ON WHCIH ALL BIDS MUST BE SUBMITTED TO THE ISSUER
    II A\IS THE DATE ON WHICH THE CONTRACT TO PURCHASE THE SECURITIIES IS SIGNED
    III COINCIDES WITH THE END OF THE PRESALE PERIOD
    IV COINCIDES WITH THE END OF THE UNDERWRITING PERIOD.

    A_ I AND III
    B_I AND IV
    C)II AND III
    D)II AND IV
    A

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