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Series 3 Sample Questions

Our Questions Mimic the Real Exam

Our courses reinforce retention over memorization with in-depth content and practice questions that mimic the actual test — so there are no surprises come exam day.

Closed & Open Stem

Most/Least/Best

Except or Not

Complex Multiple Choice


More about Testing Methods
Team members collaborating

When demand for the U.S. dollar weakens, which of the following is true?

A.

The price of imports will decline

B.

The dollar will be able to buy more units of a foreign currency

C.

Foreign governments are more likely to invest in American businesses

D.

The price of foreign goods will rise

Answer: The Correct Answer is D

Rationale: When demand for the U.S. dollar weakens, its price relative to other currencies goes down. The dollar will buy fewer units of that currency, and the price of foreign goods will increase per dollar spent. Imports will become more expensive, as will the cost of foreign travel. In contrast, when the U.S. dollar is strong, it can buy more units of a foreign currency, making imports relatively cheap. A strengthened dollar often convinces foreign governments and banks to invest in U.S. businesses.

Leon shorts a SOFR futures contract at 96.20. His initial margin is $840 and he has a maintenance margin of $620. If the contract later settles at 95.90, how much additional margin must Leon deposit?

A.

$0

B.

$40

C.

$250

D.

$350

Answer: The Best Answer is A

Rationale: When a client shorts a contract and its value declines, they are not required to add margin to the contract.

Which of the following is true of an NFA arbitration hearing?

A.

Testimony takes place under oath

B.

The use of attorneys is prohibited

C.

Individual parties (or in the case of a firm, a principal) must appear in person

D.

For amounts over $25,000, the Arbitration Panel will have three members

Answer: The Best Answer is A

Rationale: Each party may choose whether to appear personally at the hearing to testify and produce evidence. They may each present opening and closing arguments and may examine any other party or witness at the hearing, as well as any evidence produced there. The panel may order members and associated persons to testify and produce documentary evidence. It may also issue subpoenas to non-members as authorized by law. All testimony at the hearing will be given under oath. An attorney may represent a party. For amounts under $50,000, the claim will be heard by one arbiter; for amounts over $250,000, by a panel of three. For amounts in between, the claim will be heard by one arbiter unless one of the parties requests a panel of three.

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