Basics Beginner: Broker Services

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1.
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.
2.
Brokers may also be known as _______.
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Any of the other titles. They all refer to brokers.
3.
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.
4.
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.
5.
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).