Futures Commission Merchant Account Discretion Quiz
10 Questions
3 Views

Futures Commission Merchant Account Discretion Quiz

Created by
@EngagingOmaha

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the principal function of the Commodity Futures Trading Commission (CFTC) in relation to customer protection rules?

  • Approving new futures and options contracts
  • Regulating exchanges and floor members
  • Enforcing the maximum investment amount per client
  • Establishing minimum financial and ethical standards for commodity firms (correct)

    • Which organization was established as part of a major revision of the Commodity Exchange Act in 1975?

  • Commodity Futures Trading Commission (CFTC) (correct)
  • Federal Reserve System
  • Self-Regulatory Organization
  • National Futures Association (NFA)

    • What is the role of the National Futures Association (NFA) in relation to the commodities industry?

  • Regulating exchanges
  • Monitoring futures and options prices
  • Self-regulatory organization (correct)
  • Enforcing margin requirements

    • Which entity has overall responsibility to regulate futures and options?

    <p>Commodity Futures Trading Commission (CFTC)</p> Signup and view all the answers

    What does the National Futures Association (NFA) do with the responsibilities delegated by CFTC?

    <p>Carries them out</p> Signup and view all the answers

    Which function is carried out by both the CFTC and the NFA in regulating commodities?

    <p>Enforcing customer protection rules</p> Signup and view all the answers

    What is one of the functions of the CFTC regarding manipulation of futures and options prices?

    <p>Preventing price manipulation</p> Signup and view all the answers

    How do exchanges and floor members fall under the regulation of the CFTC?

    <p>'Subject to supervision and review' basis</p> Signup and view all the answers

    What does the NFA assist in within the commodities industry?

    <p>'Self-regulation'</p> Signup and view all the answers

    What is one specific duty performed by the CFTC to regulate exchanges?

    <p>Regulating floor members</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser