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Investing Basics Beginner: Broker Services

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1.
All of the following are good reasons to use a full-service broker, except _______.
Choose wisely. There is only one correct answer.
The guarantee of higher returns. This is not something a full-service broker can offer (though he or she can offer the other options).
2.
A brokerage may be able to offer checking and credit cards.
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True. Brokerage firms can offer asset management accounts that combine broker services with banking services such as checking and credit cards.
3.
Full-service brokers can offer all of the following services except _______.
Choose wisely. There is only one correct answer.
Tax preparation. Preparing taxes is not one of the services of a full-service broker, but all of the other listed options may be.
4.
Brokers are allowed to give limited tax advice.
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True. Brokers can advise you on investments that will limit your exposure to taxes.
5.
A full-service brokers commission is based on the total value of holdings in the customers account.
Choose wisely. There is only one correct answer.
False. Commissions are fees levied on each transaction the broker processes for the customer.