Answer: The Best Answer is B

Rationale: Local Government Investment Pools (LGIPs) are trusts established by local governments that allow municipal entities to invest their money in a variety of securities. The government entities purchase interests in the trust, and the assets are invested according to the trust’s stated investment objectives and state laws. By pooling their funds, the participants benefit from economies of scale, diversification, professional portfolio management, and liquidity. LGIPs are authorized by state law and may be managed by government employees or investment management firms. Participants in an LGIP may purchase shares directly through the government issuer or through a private investment management firm. LGIP management firms may charge sales fees and commissions for their services, as well as collect management and administrative fees out of the assets in the fund.

Answer: The Best Answer is A

Rationale: Before an employee of another broker or dealer can open an account with a municipal securities dealer, the dealer must notify the employer in writing and provide duplicate confirmations to the employer.

Answer: The Best Answer is B

Rationale: Besides rolling over the fund from one beneficiary to another, the funds in a 529 plan can also be rolled over from: · One kind of 529 plan to another (e.g., college savings plan to prepaid tuition plan) · One state’s 529 plan to another state’s 529 plan Each of these types of rollovers can be conducted without any tax consequences if the funds are deposited in the new account within 60 days of withdrawal from the old account. Plan to plan rollovers may only be done once in a 12-month period. There may be state tax implications for rollovers from one state’s 529 plan to another state’s 529 plan. Some states may try to “recapture” state income tax deductions given to residents that opened a college savings plan in that state when they roll over to another state’s plan by imposing taxes on withdrawals of earnings from the out-of-state plan.

Answer: The Best Answer is D

Rationale: Non-bank municipal securities dealers must preserve subsidiary records for at least four years. Bank dealers, including those municipal securities dealers that are a subsidiary or division of a bank, must preserve them for three years.

Answer: The Best Answer is A

Rationale: Blind advertisements are advertisements that do not identify a broker-dealer, providing only issuer contact information for obtaining an official statement and a short slogan of the issuer’s general objectives. Generic advertisements, limited to explanatory information relating to municipal fund securities in general, also are exempt.