Series 7 Exam Question 330: Answer and Explanation

Question: 330

If a customer wants to open a cash account at a brokerage firm, the signature(s) of which of the following is/are required?

I. The registered representative

II. The customer

III. The principal

IV. The guarantor

• A. IV only
• B. I and III
• C. I, II, and III
• D. I, II, III, and IV

Correct Answer: B

Explanation:

B. Remember, when a customer opens a cash account, the only signatures that are required are that of the registered rep and a principal of the firm. However, if a customer were to open up a margin account, they'd have to sign a margin agreement.