Leadership & Team Management Flashcards
7 cards from real Series 3 – The National Commodities Futures Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Leadership & Team Management flashcards as text
Under the Commodity Exchange Act whistleblower provisions, what is true of an employee who reports a possible violation to the CFTC?
Answer: The employer is prohibited from retaliating against them
The CEA protects whistleblowers from employer retaliation.
A supervisor learns that an AP is telling prospects that profits are guaranteed. What should be done?
Answer: Stop the practice, investigate, escalate, and take corrective action
Guaranteeing profits is misleading and prohibited, so it requires immediate corrective action.
Under CFTC Regulation 1.31, how long must most required books and records generally be kept?
Answer: 5 years
Records are generally retained for five years and readily accessible during the first two.
A broker enters a trade in the wrong account due to a keying error. Who should bear the loss?
Answer: The firm or responsible party, through an error account process
Errors are corrected via firm procedures, and customers should not bear losses from the firm's mistakes.
Which NFA rule requires members to maintain a business continuity and disaster recovery plan?
Answer: Rule 2-38
NFA Compliance Rule 2-38 requires written continuity and recovery plans.
What is the main purpose of exception reports for supervisors?
Answer: Flagging activity that deviates from norms for further review
Exception reports highlight outliers such as excessive trading or unusual margin activity.
A manager notices that compensation rewards only trading volume. What risk should the manager consider?
Answer: Incentives may encourage excessive trading and sales abuses
Volume-driven pay can create conflicts that need additional controls.
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Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- finra.org — Score release, test dates, test delivery, fees, exam format, passing score · verified Oct 2026
- nfa.futures.org — Eligibility, score validity · verified Oct 2026