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.
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.
2.
You will make more money using a full-service broker because of their knowledge and expertise than you would by going it alone.
Choose wisely. There is only one correct answer.
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.
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.
Choose wisely. There is only one correct answer.
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.