Basics Beginner: Broker Services

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1.
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).
2.
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.
3.
A full-service brokers commission is based on the total value of holdings in the customers account.
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False. Commissions are fees levied on each transaction the broker processes for the customer.
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 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.