Series 63 – Uniform Securities Agent State Law Exam Exempt Transactions and Securities 3

Question 1

Under the USA, a transaction by a sheriff, marshal, or court-appointed receiver qualifies as what type of exemption?

Accepted Answer

A fiduciary transaction exemption

Answer

An institutional exemption

Answer

A governmental exemption

Answer

A de minimis exemption

Question 2

Which of the following is true about the exemption for transactions with financial institutions under the USA?

Accepted Answer

It applies to transactions with any institutional investor defined under the USA

Answer

It applies only to transactions with commercial banks

Answer

It requires prior approval from the Administrator

Answer

It only applies if the transaction involves listed securities

Question 3

Under the USA, an issuer must file a notice of which type of transaction with the Administrator within a specified time period?

Accepted Answer

Private placement transactions claiming a transaction exemption

Answer

All secondary market transactions

Answer

All transactions involving covered securities

Answer

All unsolicited transactions

Question 4

Which of the following securities issued by a US government agency is exempt from registration under the USA?

Accepted Answer

Securities issued by the Federal Home Loan Bank

Answer

A corporate bond guaranteed by the US government

Answer

A foreign bond backed by US Treasury securities

Answer

Securities of a company that contracts with the US government

Question 5

Under the USA, the burden of proving that a transaction qualifies for an exemption falls on which party?

Accepted Answer

The person claiming the exemption

Answer

The Administrator

Answer

The purchaser of the securities

Answer

The registered agent involved in the sale

Question 6

Which of the following describes a 'Regulation D Rule 506' offering in relation to state law?

Accepted Answer

It is a covered security exempt from state registration but subject to state notice filing

Answer

It is subject to full state registration in every state

Answer

It is only available to issuers with fewer than 50 shareholders

Answer

It requires state-by-state approval before securities can be sold