Basics Beginner: Broker Services

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%

Keep studying!

Review your answers below to learn more.

1.
The following statements are true of all brokers, except for _______.
Choose wisely. There is only one correct answer.
They provide advice on stock trades. While this is a service offered by full-service brokers, discount brokers provide only transaction services.
2.
Brokers may also be known as _______.
Choose wisely. There is only one correct answer.
Any of the other titles. They all refer to brokers.
3.
Brokers are allowed to give limited tax advice.
Choose wisely. There is only one correct answer.
True. Brokers can advise you on investments that will limit your exposure to taxes.
4.
A brokerage may be able to offer checking and credit cards.
Choose wisely. There is only one correct answer.
True. Brokerage firms can offer asset management accounts that combine broker services with banking services such as checking and credit cards.
5.
Which of these investment strategies might be best executed by a discount broker?
Choose wisely. There is only one correct answer.
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.