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

Question 1

Which statement in promotional material would violate NFA Rule 2-29?

Accepted Answer

"Profits are virtually assured with our trading system."

Answer

Promotional material may not be misleading or promise or guarantee profits.

Question 2

Hypothetical trading results in a promotion must carry a disclaimer stating what?

Accepted Answer

They have inherent limitations and may not reflect actual trading

Answer

Hypothetical results carry a required cautionary statement about their inherent limitations.

Question 3

By what time must an FCM generally send a customer a confirmation of an executed trade?

Accepted Answer

Promptly, no later than the next business day

Answer

CFTC rules require confirmations promptly, by the next business day after execution.

Question 4

NFA requires member firms to keep written customer complaint records for how long?

Accepted Answer

Five years

Answer

NFA recordkeeping rules require retention of written complaint records for five years.

Question 5

A client wants to trade options on futures. What must the firm provide before opening the options account?

Accepted Answer

An Options Disclosure Statement

Answer

Customers must receive an options disclosure statement before options trading begins.

Series 3 – The National Commodities Futures Test Practice Test