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Customer Accounts & Suitability: 30 free SIE practice questions

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  1. A registered rep recommends an investment that pays a higher commission but is less suitable for the client. Which obligation has the rep…medium
  2. A registered investment adviser managing client portfolios has which of the following primary obligations?medium
  3. A trustee for a pension plan invests in speculative stocks hoping to boost returns. The plan later suffers large losses. What rule has most…hard
  4. An investment adviser owes fiduciary duty to their client. What does this require?medium
  5. A registered representative makes a recommendation primarily to generate commissions regardless of client benefit. This violates which…hard
  6. A registered representative who recommends a product solely because it pays the highest commission is violating:easy
  7. According to FINRA’s Regulation Best Interest, a registered rep must:medium
  8. If a registered rep makes recommendations involving securities for which the firm is a market maker, what must be disclosed to clients?hard
  9. Which of the following is required BEFORE a registered representative can exercise discretion over a customer's account?medium
  10. When opening a new brokerage account, which of the following is NOT typically required?easy
  11. Under SEC Regulation Best Interest (Reg BI), a broker-dealer must act in the best interest of the retail customer when making a…medium
  12. Under FINRA Rule 4512, broker-dealers must make reasonable efforts to obtain the name of a trusted contact person when opening a customer…easy
  13. Under SEC Regulation Best Interest, broker-dealers must provide retail customers with Form CRS (Customer Relationship Summary). This form…medium
  14. A registered representative who places trades that are most advantageous to the client is upholding which standard?easy
  15. A registered representative must always act in the:medium
  16. A registered representative making a trade unsuitable for a client violates which duty?medium
  17. An agent receives a limit order from a client to buy 400 shares of LMN stock at $35. While waiting for the limit to be reached, the agent…hard
  18. Which piece of information is NOT required to open a standard individual brokerage account?medium
  19. To open an institutional account for a corporation, the broker-dealer must obtain:medium
  20. What documentation must a client be provided before their options account can be approved for trading?medium
  21. Who can exercise discretionary authority in a brokerage account?medium
  22. An investment adviser opening a discretionary account for a client has what primary responsibility?medium
  23. A registered representative must put the client's interests ahead of their own. This duty is known as:easy
  24. Under Regulation Best Interest (Reg BI), broker-dealers must:medium
  25. A fiduciary who trades based on personal gain, using their position to access confidential client information, has violated:hard
  26. A registered investment adviser makes a series of trades to generate commissions without regard for the client’s objectives. This is:medium
  27. A fiduciary for a trust account executes speculative trades without the knowledge or consent of the beneficiaries. This action is:hard
  28. Which standard obligates brokers to put their customer's interests ahead of their own when making recommendations?easy
  29. A broker recommends proprietary mutual funds over better-performing alternatives without disclosure. This violates:medium
  30. A broker ignores a client’s stated low-risk preference and recommends leveraged ETF products. Which regulatory principle is violated?hard
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