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American Bankers Association CRCM Exam - Topic 2 Question 124 Discussion

First National Bank is a municipal securities dealer. Its municipal securities department is supervised by Mary Watkins, a municipal securities principal. The department has five other employees, including two municipal securities representatives. Martin Wells, a commercial loan customer of the bank, tells Ms. Watkins he wants to invest in municipal securities and asks for her help. Mr. Wells has never dealt with the municipal securities department of the bank and has never purchased municipal securities. He wants to purchase the securities today. What should Ms. Watkins do?
B) Help him make the purchase only if she can be assured the transaction meets the MSRB suitability requirements
A) Determine what he would like to buy and help him buy it
C) Help him make the purchase but avoid making any recommendations or comments about the advisability of the transaction
D) Refer him to a municipal securities representative

American Bankers Association CRCM Exam - Topic 2 Question 124 Discussion

Actual exam question for American Bankers Association's CRCM exam
Question #: 124
Topic #: 2
[All CRCM Questions]

First National Bank is a municipal securities dealer. Its municipal securities department is supervised by Mary Watkins, a municipal securities principal. The department has five other employees, including two municipal securities representatives. Martin Wells, a commercial loan customer of the bank, tells Ms. Watkins he wants to invest in municipal securities and asks for her help. Mr. Wells has never dealt with the municipal securities department of the bank and has never purchased municipal securities. He wants to purchase the securities today. What should Ms. Watkins do?

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Suggested Answer: B

by Kathrine at Apr 11, 2026, 11:51 PM

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Stevie
2 hours ago
I think she should definitely refer him to a municipal securities representative.
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Rolland
5 days ago
I’m surprised he wants to invest without any prior experience!
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Avery
10 days ago
Referring him to a rep sounds safer, option D might be best.
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Aretha
16 days ago
Wait, can she really just help him without knowing his needs?
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Lynsey
2 months ago
I agree, option B is the way to go!
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Leonie
2 months ago
Ms. Watkins should definitely assess suitability first.
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Shannon
3 months ago
I remember discussing how important it is to assess a client's needs first. So, option A seems like it could lead to issues if he doesn't understand the risks.
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Norah
3 months ago
I recall something about not making recommendations if the client is inexperienced. So maybe option C could be risky?
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Erick
3 months ago
I'm not entirely sure, but I feel like referring him to a municipal securities representative might be the safest option.
upvoted 0 times
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Tamie
3 months ago
I think Ms. Watkins should definitely consider the suitability requirements before helping Mr. Wells. I remember a practice question about that.
upvoted 0 times
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