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NEW QUESTION: 1
MoeMoney Investment Advisers uses the services of two broker-dealers exclusively when it executes
trades for its clients' accounts. The larger of the two broker-dealers provides MoeMoney with research
from its analyst department in return for the business and also serves as the custodian for some of
MoeMoney's clients' accounts. The smaller of the two broker-dealers picks up the utility bill for MoeMoney.
MoeMoney is careful to disclose this form of "soft dollar" compensation to its clients. Is it in violation of any
securities laws?
A. Yes. Investment advisers are prohibited from receiving any soft dollar compensation whatsoever.
B. No. Investment advisers are entitled to receive soft dollar compensation from broker-dealers with which
it has a relationship as long as they disclose this to their clients.
C. Yes. Although investment advisers are permitted to receive some forms of soft dollar compensation
from broker-dealers with which it has a relationship, such as research or custodial services, other forms of
soft dollar compensation, including the payment of overhead expenses,are prohibited.
D. Yes. Investment advisers are required to use more than two broker-dealers when executing trades on
its clients' accounts.
Answer: C
Explanation:
Yes. MoeMoney is in violation of securities laws in accepting payment of its utility bills for
directing business to the smaller broker-dealer because this form of soft dollar compensation is prohibited.
Some forms of soft dollar compensation are permitted, such as the research and custodial services
MoeMoney receives from the larger broker-dealer, but the payment of any office overhead expense is not.
Allowed soft dollar compensation is deemed to benefit both the investment adviser and its clients; soft
dollars that seem to benefit only the adviser are not allowed.
NEW QUESTION: 2
Which of the following RAM types are compatible with PC2700 and maintain the same performance?
A. PC 3200
B. PC2 4200
C. PC2 5300
D. PC 2400
Answer: A
Explanation:
Reference:http://www.tomshardware.com/forum/266969-30-compatiblity-pc3200-pc2700
NEW QUESTION: 3
Outbound Calling is a feature typically associated with ____ configuration.
A. a Behind the Switch
B. an In-Front of the Switch
C. an MRCP ASR
D. a VoIP application
Answer: B