SIE practice questionmediumMunicipal Accounts and MSRB Rules
A broker-dealer opens an account for a municipality to purchase bonds. What rules govern the activities of the broker-dealer for this account?
- ARegulation A+
- BThe Commodity Futures Trading Commission (CFTC) rules
- CThe Federal Reserve Board rules
- DThe Municipal Securities Rulemaking Board (MSRB) rules✓ Correct answer
Explanation
Why D — The Municipal Securities Rulemaking Board (MSRB) rules
MSRB rules govern broker-dealers transacting municipal securities. CFTC rules apply to futures, Federal Reserve Board rules manage monetary policy, and Reg A+ concerns small public offerings.
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