Series 63 practice questionmediumExempt Securities - Bank Securities (Scenario)
A client is offered bonds issued by a state-chartered bank located in another state. Under the USA, the bonds are:
- AExempt securities regardless of the state of issue✓ Correct answer
- BNot exempt unless the bank is chartered in the client's home state
- CExempt only if the bonds are federally covered
- DNot exempt if sold in interstate commerce
Explanation
Why A — Exempt securities regardless of the state of issue
Securities issued by any bank (state or federal) qualify for exemption under USA Section 402(a)(2), regardless of the state of issue.
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