Series 10 Exam Question 24: Answer and Explanation

Question: 24

As it relates to the management of a discretionary account, which of the following is NOT true?

• A. The client may reject the agent's selections after reviewing the transaction.
• B. The agent may give discretion to another agent while on vacation.
• C. The discretionary authority given to the agent is a special power of attorney that survives the death of a client so that the agent may liquidate the account for the estate.
• D. All tickets must clearly state whether discretion was exercised.

Correct Answer: D

Explanation:

All orders must be marked as to whether discretion was used.