Series 63 practice questioneasyExempt Securities - Bank Securities
Which of the following is an example of an exempt security under the USA?
- AA certificate of deposit issued by a state-chartered bank✓ Correct answer
- BA bond issued by a publicly traded corporation
- CA private placement of stock
- DA promissory note issued by an insurance company
Explanation
Why A — A certificate of deposit issued by a state-chartered bank
Certificates of deposit issued by banks are exempt under USA Section 402(a)(2). Bonds from public companies and private placements may be exempt transactions but not exempt securities. Promissory notes from insurance companies are not exempt.
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