Under what circumstances may a municipal securities dealer guarantee a customer against loss in market value of bonds?

• A.under no circumstances
• B.only if the agreement is in writing
• C.only if the bonds are rated AAA or Aaa
• D.only if the bonds are insured

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Which of the following would be least useful to an analyst making a technical market report?

• A.advances and declines
• B.new highs and lows
• C.the short interest
• D.predictions of recession in the economy

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Bubba buys a US treasury bond. The interest he earns is:

• A.subject to federal and state income tax
• B.exempt from federal and state income tax
• C.subject to state income tax but exempt from federal income tax
• D.subject to federal income tax but exempt from state income tax

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Bubba is age 54 and has investments in a retirement plan with his former employer valued at $104,500. Bubba withdraws $25,000 to open a retail clothing store.
Which of the following statements is true regarding Bubba's tax consequences?

• A.the entire account is terminated and $104,500 is immediately taxable
• B.a penalty of 10% of the withdrawn amount is assessed
• C.a penalty of 10% on all assets in Bubba's account is assessed
• D.only regular income tax is due on the amount withdrawn

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An employer profit sharing plan may be described as:

• A.an income tax deduction
• B.a retirement plan
• C.a tax deferral plan
• D.all of the above

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