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NEW QUESTION: 1
Sarah Bean is a registered representative with NewWave Investments, a family of mutual funds. She has recommended one of NewWave's funds to a client and given him a prospectus. The prospectus provides information about the fund's breakpoints and indicates that an investment of $25,000 or more will lead to a reduced front-end load. The prospectus also clearly explains the details of a letter of intent. Sarah's client invests $23,000 in the fund then and there without even opening the prospectus.
Has Sarah violated any of FINRA's rules of conduct?
A. Yes. Sarah needed to tell her client that he would have to read through the prospect us to ensure he understood all aspects of the investment before she could take any money from him.
B. No. Sarah properly provided her client with a prospectus prior to selling him shares of the fund.
C. Yes. Sarah is not permitted to accept funds from a client without the presence of her immediate supervisor.
D. Yes. Sarah is required to explain the concepts of breakpoints and letters of intent to her client.
Answer: D
Explanation:
Explanation/Reference:
Explanation: Yes. Sarah is required to explain the concepts of breakpoints and letters of intent to her client and her failure to do so is a violation of FINRA's rules of conduct. A registered representative selling mutual fund shares is required to explain the salient facts contained in a fund's prospectus to a client before selling him the fund shares. Sarah's failure to do so is deemed "inconsistent with just and equitable principles of trade."
NEW QUESTION: 2
다음 중 관찰을 수동 감사 절차로 사용하는 데 제한이 있는 것은 무엇입니까?
A. 문서화 또는 기록 된 정보의 유효성을 테스트하기 위해 관찰이 구체적으로 수행됩니다.
B. 관찰은 다른 형식의 수동 감사 절차가 이미 수행 된 것을 알고 있는 경우 개인이 덜 비판적으로 또는 신중하게 행동하게 할 수 있습니다.
C. 관찰은 특정 시간에 정보를 제공하며 대표 결론을 내리기가 어렵습니다.
D. 직접적인 증거가 없기 때문에 관찰은 설득력이 없다.
Answer: C
NEW QUESTION: 3
A customer wants to load certain accounts with both local and reporting currencies without doing a currency translation.
What expression in the formula of the business rule for currency conversion would leave
the reporting currency value unchanged?
A. [NOTRANS]
B. [COPYLC]
C. [END]
D. [AS_IS]
Answer: D
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