Currency transaction reports must be filed for cash transactions that exceed:

A) $25,000.

B) $50,000.

C) $100,000.

D) $10,000

Answer: D) $10,000

FinCEN Form 104, the Currency Transaction Report, is filed with the:

A) National Security Agency.

B) Internal Revenue Service.

C) Department of the Treasury.

D) Federal Bureau of Investigation (FBI).

Answer: B) Internal Revenue Service.

The currency reporting threshold for cash and equivalent instruments is:

A) over $5,000.

B) over $25,000.

C) over $10,000.

D) over $3,000.

Answer: C) over $10,000.

The NASAA Statement of Policy on Unethical and Dishonest Business Practices of Broker/Dealers and Agents contains an extensive list of prohibited practices, but concludes with the statement that the list is not inclusive. This means that even practices not specifically enumerated will be prohibited if they are in violation of the standards of ethical behavior. One such circumstance that may arise is an agent making an initial sale of shares of an open-end investment company in a quantity just below a breakpoint published in the fund's prospectus. In this case, the agent:

A) recognized the limitations of the client's ability to invest any further sum of money.

B) would violate those ethical standards by failing to disclose that adding a small amount to the purchase would save a significant amount of sales charge.

C) must explain the procedure for taking advantage of rights of accumulation on future purchases.

D) has violated the suitability standards by failing to explain the risks inherent in making an investment below a breakpoint.

Answer: B) would violate those ethical standards by failing to disclose that adding a small amount to the purchase would save a significant amount of sales charge.