Series 7 practice questioneasyProduct Knowledge and Suitability Foundation 1
Reasonable-basis suitability requires a representative to:
- Aguarantee the product is suitable for every customer
- Brecommend only products approved by the issuer
- Cunderstand the features and risks of a product before recommending it✓ Correct answer
- Davoid all complex products regardless of customer need
Explanation
Why C — understand the features and risks of a product before recommending it
Before recommending any investment, the representative must perform due diligence and understand how the product works. That is separate from the later step of determining whether it fits a specific customer.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Seeks Business for the Broker-Dealer questions
- Before making an unsolicited call to a prospect, a representative must review the national Do Not Call list and the…
- When using social media for business purposes, a static profile page is generally treated as:
- If a prospect asks whether a broker-dealer account is insured against market loss, the representative should explain…
- Under the Telephone Consumer Protection Act, a retail cold call may be placed only between: