Series 3 – The National Commodities Futures Test Communication & Stakeholder Engagement 5

Question 1

A customer asks whether their funds are safe from the FCM's creditors. What is the accurate answer?

Accepted Answer

Segregated customer funds must be kept separate from the FCM's own funds

Answer

The CEA requires customer funds to be segregated from the FCM's own funds, though they are not FDIC or SIPC insured.

Question 2

A firm receives an NFA inquiry about a complaint. What is the proper response?

Accepted Answer

Delay until the customer withdraws

Answer

Members must cooperate with NFA and respond truthfully and promptly.

Question 3

NFA Rule 2-4 requires members to observe which standard in dealing with customers?

Accepted Answer

Just and equitable principles of trade, with high standards of commercial honor

Answer

Rule 2-4 requires high standards of commercial honor and just and equitable principles of trade.

Question 4

NFA Rule 2-9 requires a member to do what regarding its employees and agents?

Accepted Answer

Diligently supervise them in their futures activities

Answer

Rule 2-9 requires diligent supervision of employees and agents.

Question 5

Within what time period must a customer file a CFTC reparations complaint after the cause of action accrues?

Accepted Answer

Two years

Answer

Reparations complaints must be filed within two years of the cause of action.

Series 3 – The National Commodities Futures Test Practice Test