SIE Exam Practice Question 104

Correct Answer: D

Explanation:

A person who acts nervously or anxiously when answering questions about their objectives would raise a red flag when opening an account for a new client. It is common to find new investors who have no experience in the financial markets. While having a client with poor spending habits is unfortunate, it is not a sign of acting in bad faith. Customers can sometimes be skeptical about providing personal details, especially financial information.