Which of the following describe an underwriter's financial liability if a syndicate is established as an Eastern account?

Divided liability to purchase securities from the issuer.

Undivided liability to purchase securities from the issuer.

Divided responsibility for securities that remain unsold.

Undivided responsibility for securities that remain unsold.

A) II and IV.

B) I and III.

C) I and IV.

Answer: A) II and IV.

Which of the following underwriting arrangements is associated with an invitation, typically found in The Bond Buyer, directed at investment bankers and broker dealers, intended to solicit interest in underwriting a new municipal issue?

A) Competitive bid.

B) Best efforts.

C) Negotiated.

D) All or none.

Answer: A) Competitive bid.

A dealer that quotes a concession of ½ to another dealer means:

A) ½% of the market price.

B) ½% of the dealer's price.

C) a 50% commission split.

D) $5 per $1,000 of par.

Answer: D) $5 per $1,000 of par.

A municipal finance professional (MFP) is

A) an elected official of a municipality having some decision-making authority regarding new municipal bond issues

B) employed by a municipality to oversee the issuance of municipal bonds

C) an employee of a broker/dealer engaged in municipal security representative activities other than retail sales or who solicits municipal securities business for the broker/dealer

D) an employee of the MSRB specializing in seeing that broker/dealers adhere to the MSRB rules and regulations regarding the sales of municipal bonds to retail customers

Answer: C) an employee of a broker/dealer engaged in municipal security representative activities other than retail sales or who solicits municipal securities business for the broker/dealer