Basics Beginner: Broker Services

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1.
The following statements are true of all brokers, except for _______.
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They provide advice on stock trades. While this is a service offered by full-service brokers, discount brokers provide only transaction services.
2.
All of the following are good reasons to use a full-service broker, except _______.
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The guarantee of higher returns. This is not something a full-service broker can offer (though he or she can offer the other options).
3.
Which of these investment strategies might be best executed by a discount broker?
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Buying and holding balanced mutual fund shares. A relatively uncomplicated and low-risk strategy, such as buying and holding mutual fund shares, may not require the advice of a full-service broker. With more aggressive and complicated strategies, the average investor should seek professional advice.
4.
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.
5.
Brokers may also be known as _______.
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Any of the other titles. They all refer to brokers.