Finra Series-6 Exam - Topic 10 Question 78 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 78
Topic #: 10

[All Series-6 Questions]

A discretionary account authorization permits a registered representative to decide:

Awhether to make a purchase or a sale.

Bwhat specific asset to purchase or sell.

Chow much of an asset to buy or sell for the account.

Dall of the above.

Show Suggested Answer

Suggested Answer: B

A broker dealer is required to file a Currency Transaction Report with the Treasury Department for any cash transaction exceeding $10,000. The report does not need to be filed if the transaction simply has a market value of $10,000, but does not involve cash (aka, currency.)

by Marya at May 20, 2024, 12:08 PM

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Mirta

4 months ago

Not sure I like the idea of someone else making those calls.

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Marleen

5 months ago

Yup, they can choose what and how much to trade.

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Andra

5 months ago

Wait, can they really decide everything? Seems risky.

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Simona

5 months ago

Totally agree, it's all about trust in your advisor!

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Trevor

5 months ago

A discretionary account lets reps make trades without asking first.

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Charlette

6 months ago

I think it’s definitely about making decisions on what to buy or sell, but I’m a bit confused about whether that includes the amounts too.

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Ivan

6 months ago

I feel like discretionary accounts give a lot of power to the rep, but I can't recall if they can decide on every detail or just some.

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Margurite

6 months ago

I remember practicing a question like this, and I think the answer might be D, since it seems to include everything the rep can decide.

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Darrin

6 months ago

I think a discretionary account lets the rep decide on purchases and sales, but I'm not sure if it covers all the specifics like amounts.

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Tina

6 months ago

Wait, I'm a bit confused. I thought a discretionary account meant the rep could only decide what specific asset to buy or sell, not the other details. I'll have to double-check my notes on this topic.

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Edna

6 months ago

Okay, I've got this. A discretionary account authorization means the rep can decide everything - whether to buy or sell, what to buy or sell, and how much. So the answer has to be D, all of the above.

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Lynsey

6 months ago

This looks like a straightforward question about discretionary account authorization. I'm pretty confident I know the answer, so I'll just go with option D.

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Nichelle

6 months ago

Hmm, I'm a little unsure about this one. I think the key is understanding the definition of a discretionary account authorization. Let me re-read the question carefully and think through the options.

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Cristina

6 months ago

This is a tricky one. I'm not super familiar with agent-based modeling, so I'm a bit unsure. My initial instinct is that B (Machine Learning) is the best answer, since that's a common approach for extracting insights from complex simulation data. But I'll double-check my understanding before committing to an answer.

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Ernie

6 months ago

Okay, I've got a good handle on this. Option C seems to be the most accurate description of how file quarantine functions - it removes the file to a protected folder and prevents execution. I'm confident that's the right answer.

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Sheron

6 months ago

Okay, I'm pretty confident the answer is Least bandwidth. That method will send new connections to the server with the lowest network usage, which should help balance the load across the backend resources.

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Trinidad

6 months ago

I think the Agent Activity Summary Report would be the best choice here, as it tracks agent activity and idle time.

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Tenesha

11 months ago

Discretionary account? More like a 'whatever-I-feel-like' account. As long as the broker doesn't go on a spending spree, it should be fine.

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Barb

9 months ago

C) how much of an asset to buy or sell for the account.

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Santos

9 months ago

B) what specific asset to purchase or sell.

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Flo

10 months ago

A) whether to make a purchase or a sale.

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Mitzie

11 months ago

Discretionary account, huh? Sounds like a blank check for the broker to do whatever they want. I hope they use it responsibly!

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Mammie

11 months ago

This is a trick question! The answer is clearly D, but I bet the test writers are trying to see if we're paying attention.

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Louvenia

10 months ago

C) how much of an asset to buy or sell for the account.

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Rolland

11 months ago

B) what specific asset to purchase or sell.

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Eric

11 months ago

A) whether to make a purchase or a sale.

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Annice

11 months ago

I thought B was the right answer. Isn't that the whole point of a discretionary account, to let the rep decide what assets to trade?

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Deeanna

10 months ago

C) how much of an asset to buy or sell for the account.

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Elliott

10 months ago

B) what specific asset to purchase or sell.

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Brianne

10 months ago

A) whether to make a purchase or a sale.

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Michal

11 months ago

Option D is the correct answer. A discretionary account allows the representative to make all the decisions, from what to buy or sell to how much to trade.

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