Finra Exam Series-6 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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Tenesha

2 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

21 days ago

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

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Santos

22 days ago

B) what specific asset to purchase or sell.

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Flo

1 months ago

A) whether to make a purchase or a sale.

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Mitzie

2 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

3 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

1 months ago

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

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Rolland

2 months ago

B) what specific asset to purchase or sell.

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Eric

2 months ago

A) whether to make a purchase or a sale.

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Annice

3 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

1 months ago

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

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Elliott

1 months ago

B) what specific asset to purchase or sell.

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Brianne

1 months ago

A) whether to make a purchase or a sale.

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Michal

3 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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