SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 10: Answer and Explanation

Question: 10

Which of the following describes a joint account?

• A. A corporate resolution is needed to specify who may open the account and who may initiate activity.
• B. The trust agreement must be on file, along with documentation of the trustee's authority to determine activity for the good of the beneficiary.
• C. The partnership agreement is required.
• D. Any owner may determine activity, but all owners must sign when a signature is needed.

Correct Answer: D

Explanation:

D: Choice D correctly reflects the actions regarding a joint account. Choice A describes a corporate account. Choice B describes a trust account. Choice C notes one characteristic of a partnership account.