Series 66: Exercise

Exercise

Answer True or False.

1. True or false. It is not possible for churning to occur in a discretionary account.

2. True or false. Agents generally cannot borrow money from or loan money to customers.

3. True or false. For a margin account with a broker-dealer, a written agreement must be in place before any trades are made.

4. True or false. An investment adviser would be allowed to enter into a performance-based arrangement if the client had a net worth of $2.5 million and a primary residence valued at $600,000.

5. True or false. An investment adviser representative can only reveal confidential client information with the client’s consent.

Answers

1. False. Churning, or excessive tradi