All of the following are responsible for enforcement of the MSRB's Rules EXCEPT:
[A] SEC
[B] Board of Governors of the Federal Reserve System
[*C] U.S. Department of the Treasury
[D] Comptroller of the Currency
The U. S. Department of Treasury does not regulate municipal bonds or the market for municipal bonds.
The MSRB considers all of the following to be advertisements EXCEPT:
[A] a market letter
[B] television commercials
[C] offering sheets
[*D] official statements
An official statement is like a prospectus and is considered to be a disclosure document, not an advertisement.
Under MSRB rules, an individual hired to sell municipal securities must pass the qualifying examination
[A] within 90 days of becoming a municipal securities registered representative.
[*B] before filling customer's orders.
[C] before dealing with other m
Any individual hired to sell municipal securities must be licensed prior to filling any orders. The former requirement of an apprenticeship period has been repealed.
All of the following statements concerning municipal securities transactions are correct EXCEPT:
[A] The settlement date for securities transactions is referred to as a business day.
[B] The settlement date for a regular way transaction in municipal secur
The trade date is the date used to calculate price, but interest is calculated by settlement date.
Municipal securities dealer First Montana Corp. must do which of the following in order to handle trades for an employee of First Delaware Corp., also a municipal securities dealer?
Before establishing the account, send written notification to First Delaw
Prior approval (IV) is not required in order to handle trades, but I, II, and III are required.
Which of the following would NOT be required for good delivery of a municipal bearer bond:
[*A] The signature of the HOLDER
[B] The unused coupons attached
[C] The legal opinion
[D] The official or facsimile seal.
Since bearer bonds are not registered in the investor's name, the signature of the holder is not required.
A municipal dealer is immediately reoffering some 7% bonds it has just purchased at par. Which of the following quotes would indicate prices nearest the recent purchase at par and, therefore, most likely to be considered bona fide quotes under MSRB Rules?
The yield of 6.8% would be nearest 7%, and the price of 101-1/8 would be closest to par, therefore representing the most bona fide quote. The price of 108-1/4 is too much of a mark-up and the reduction of yield from 7% (YTM at par) to 4.95% net (yield inc
A client requests a bid for a block of municipal bonds in the secondary market. Bidders will assume, unless specified differently, that the bonds:
[*A] May be in registered or bearer form, accompanied by a legal opinion.
[B] Are bearer with all unpaid cou
When a client requests a bid for a block of municipal bonds, bidders will assume, unless specified differently, that the bonds will be either in registered or bearer form, accompanied by a legal opinion.
Under the Securities Exchange Act of 1934, the Municipal Securities rulemaking Board is allowed to make rules concerning which of the following?
Issuer reporting requirements.
Fair profits.
Books and records.
[A] I only
[B] II and III
[*C] III only
[D] Al
The MSRB was established to regulate all firms transacting a business in municipal securities. This includes broker/dealers and registered representatives. The MSRB does not regulate issuer reporting requirements or fair profits.
MSRB Rules state that an individual who is a qualified municipal securities REPRESENTATIVE may engage in:
Trading activities
Supervising trading activities
Underwriting activities
Selling activities
[A] I, II, III
[*B] I, III, IV
[C] I, II, IV
[D] II, III
II is excluded because in order to be in a supervisory position a principal's license is required.