Q:
If a person's account is frozen, which of the following activities is allowed?
I. Purchases must be made in cash
II. Sales require the delivery of the securities first.
III. No purchases or sales are allowed.
IV. Activities are normal, but require close attention from regulators.
a) I and II
b) II and III
c) III only
d) IV only
A:

The correct answer is a

A frozen account does not mean that the person can not trade, it means that transactions must be done on a cash-and-carry basis.

Have a Financial Question?

MORE FAQS

  1. Which of the following signatures are required on a client’s new account form ...

  2. If a sales representative moves from one broker-dealer to another ...

  3. Which TWO statements are TRUE about writing covered calls? I ...

  4. Which of the following statements is (are) true with respect to the calculation of returns of composites ...

  5. Which of the following are tools that are employed by the Federal Reserve in its efforts to control the money supply?

  6. Under the Telephone Consumer Act of 1991, a telemarketer must provide which of the following to a called ...

  7. Which of the following are not types of open-end management investment companies ...

  8. Which of the following statements is (are) true with respect to setting the proper constraints in managing ...

  9. Which statements about common shareholder rights are FALSE? I. A shareholder may exchange shares to ...

  10. A margin account has a long market value of $12,000, a debit balance of -$6,000 ...

  11. Under the Uniform Securities Act, which of the following are defined as securities ...

  12. Which of the following statements is (are) true with respect to the factors that a manager must take ...

  13. Federal covered securities are subject to which of the following requirements ...

  14. Which of the following deliveries for a 600 share order, broker-dealer to broker-dealer ...

  15. How do I employ a cash-and-carry trade?

  16. Are dividends the best way to make money for retirement?

  17. How many attempts at each CFA exam is a candidate permitted?

  18. What's the average salary of a financial advisor?

  19. Why is Hong Kong considered a tax haven?

  20. Is smart beta cheaper than hedge funds?

RELATED FAQS

  1. Which of the following signatures are required on a client’s new account form ... ...

    The correct answer is B. While local practices of a broker-dealer might require the client to sign the form, even when opening ...
  2. If a sales representative moves from one broker-dealer to another ...

    The correct answer is b. I, II and III are correct since all parties are required to notify the Administrator.
  3. Which TWO statements are TRUE about writing covered calls? I ...

    The correct answer is c) I is incorrect because there is no margin requirement. III is incorrect because a call writer must ...
  4. Which of the following statements is (are) true with respect to the calculation ...

    The correct answer is: a) (I) is incorrect because results that cover a period of less than a year must "not" be annualized. ...
  5. Which of the following are tools that are employed by the Federal Reserve in its ...

    I. Moral suasionII. Changing the discount rateIII. Changing the reserve requirementIV. Changing the prime interest rate A. ...
  6. Under the Telephone Consumer Act of 1991, a telemarketer must provide which of the ...

    The correct answer is d. All the choices except II are specific requirements of the Act. In addition, the law places time-of-day ...
RELATED TERMS
  1. Frozen Account

    An account to which no withdrawals or purchases can be charged. ...
  2. Account Freeze

    An action taken by a bank or brokerage that prevents any transactions ...
  3. Blocked Account

    An account that is subject to foreign exchange controls in a ...
  4. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position ...
  5. Basel III

    A comprehensive set of reform measures designed to improve the ...
  6. Arbitrage-Free Valuation

    1. The theoretical future price of a security or commodity based ...
Hot Definitions
  1. Mobile Wallet

    Mobile wallet is a virtual wallet that stores payment card information on a mobile device.
  2. Leverage

    1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. ...
  3. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  4. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  5. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  6. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
Trading Center