Series 24 Quiz – FINRA Rule Application Practice

🧠 Series 24 Quiz – FINRA Rule Application Practice

Test Your Knowledge of Rule Enforcement, Supervision, and Compliance

The Series 24 exam challenges your understanding of FINRA rules, supervisory practices, and regulatory enforcement. This quiz focuses on real-world applications of core rules tested on the exam. Ready to see how your decision-making holds up?

📋 Question 1

A registered rep fails to disclose a customer complaint to their supervisor. What is the most appropriate supervisory action?

A. Immediate termination
B. Verbal warning only
C. Written documentation and potential U4 amendment
D. Wait until annual review to address the issue

✅ Correct Answer: C
Explanation: Supervisors must document the incident and, if reportable, amend the representative’s Form U4 within 30 days.

📋 Question 2

According to FINRA rules, how often must a broker-dealer conduct an internal inspection of an office of supervisory jurisdiction (OSJ)?

A. Monthly
B. Quarterly
C. Annually
D. Every three years

✅ Correct Answer: C
Explanation: OSJs must be inspected at least once per year under FINRA Rule 3110(c)(1)(A).

📋 Question 3

Which of the following communications would be classified as “retail communication” under FINRA Rule 2210?

A. Email to 20 institutional clients
B. Internal memo to registered reps
C. TV advertisement for a new ETF
D. Letter to a single accredited investor

✅ Correct Answer: C
Explanation: Retail communication includes any written or electronic message distributed to more than 25 retail investors within 30 days, including advertisements.

📋 Question 4

What is the maximum time a registered principal has to review and approve a new account form?

A. Immediately upon account opening
B. Within 30 days
C. Promptly, but no later than the first trade
D. By the end of the month

✅ Correct Answer: C
Explanation: FINRA requires that principals approve accounts promptly, typically before or concurrent with the first trade.

📋 Question 5

Which situation would most likely trigger a Form U5 filing?

A. Change in a rep’s branch office
B. Suspension of a rep’s FINRA membership
C. Transfer of a rep to a different division
D. Termination of the rep’s registration with the firm

✅ Correct Answer: D
Explanation: Form U5 must be filed within 30 days of termination of registration, whether voluntary or involuntary.

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