Series 3 – The National Commodities Futures Test Client Relationship Management 2

Question 1

Under CFTC Rule 1.55, when must an FCM or IB obtain a signed acknowledgment of the risk disclosure statement from a new retail customer?

Accepted Answer

Before the account is opened

Answer

The risk disclosure statement must be furnished and acknowledged in writing before the account is opened.

Question 2

Which item is NOT part of the basic identity information collected under the Customer Identification Program for an individual U.S. customer?

Accepted Answer

Name of the customer's employer

Answer

CIP requires name, date of birth, address, and an identification number, not the employer's name.

Question 3

When one owner of a joint account with right of survivorship dies, what generally happens to the account?

Accepted Answer

It passes to the surviving owner(s)

Answer

Right of survivorship transfers the decedent's interest directly to the surviving owner(s).

Question 4

A corporation wants to open a futures account. Which document is typically required to authorize trading?

Accepted Answer

A corporate resolution naming who may trade

Answer

A corporate resolution confirms the entity may trade futures and identifies authorized persons.

Question 5

Before an associated person may exercise discretion over a customer's account, what is required?

Accepted Answer

Written trading authorization from the customer and firm acceptance

Answer

Discretion requires the customer's written authorization and the firm's acceptance of it.

Series 3 – The National Commodities Futures Test Practice Test