Choose wisely. There is only one correct answer to each question.
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1.
All of the following are good reasons to use a full-service broker, except _______.
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 full-service brokers commission is based on the total value of holdings in the customers account.
False. Commissions are fees levied on each transaction the broker processes for the customer.
3.
Brokers are allowed to give limited tax advice.
True. Brokers can advise you on investments that will limit your exposure to taxes.
4.
You will make more money using a full-service broker because of their knowledge and expertise than you would by going it alone.
False. While brokers may have more financial education and expertise, they are not clairvoyant. You have as good a chance at making money investing by doing your own homework carefully.
5.
Brokers may also be known as _______.
Any of the other titles. They all refer to brokers.