Answer: The Best Answer is D

Rationale: The “pay to play” rule was put into place to prevent underwriting firms from winning business via campaign donations to elected officials. The rule prohibits broker-dealers or their professionals from conducting any securities business with an issuer within two years of making a political contribution to elected officials of that issuer. This rule is specifically intended to discourage the fraudulent selection of underwriters in negotiated underwritings based on prior political contributions. Competitive underwritings are not subject to this rule because underwriters in a competitive underwriting are chosen through the lowest net interest cost rather than through the discretion of municipal officials. Note that the rule has an exception for “municipal finance professionals” (MFPs) who live in a municipality and are entitled to vote for an official of the municipality. These individuals are allowed to contribute up to $250 per election. In contrast, MFPs who do not live in a municipality cannot give any amount if they or their firm wish to conduct municipal securities business with the municipality.

Answer: The Best Answer is C

Rationale: Transactions completed during the hours of the RTRS (Real-time Transaction Reporting System) Business Day must generally be reported within 15 minutes of Time of Trade. The "RTRS Business Day" is 7:30 a.m. to 6:30 p.m. Eastern Time (ET), Monday through Friday. Transactions completed outside the hours of the RTRS Business Day must be reported no later than 15 minutes after the beginning of the next RTRS Business Day

Answer: The Best Answer is D

Rationale: According to MSRB Rule G-9, municipal securities dealers must keep the following records for at least six years: blotters or records of original entry, account records for each customer account and accounts of the broker-dealer; primary offering records must be kept along with continuing disclosure statements, customer complaints, political contributions. Subsidiary records itemizing municipal securities in transfer, securities to be validated and transactions not completed on settlement date, need to be kept by municipal securities dealers for at least 4 years.

Answer: The Best Answer is C

Rationale: For "when-issued" transactions, the customer confirmation must include all the standard information except settlement date, dollar price (for transactions executed on a yield basis), yield (for transactions executed on a dollar price), total costs and accrued interest. These cannot be confirmed because they are not yet known.

Answer: The Best Answer is D

Rationale: Brokers or dealers may not open a municipal securities account in which transactions are made for a customer who is employed by another broker-dealer unless it first gives written notice to their own employer. With each transaction for such an account, the broker or dealer must simultaneously deliver a duplicate copy of each customer confirmation to her employer.