Series 7 Exam Question 199: Answer and Explanation

Question: 199

The SEC and FINRA require customer statements to be sent out for inactive accounts at least

• A. monthly
• B. quarterly
• C. semiannually
• D. annually

Correct Answer: B

Explanation:

B. The SEC and FINRA require member firms to send customer account statements at least quarterly (once every 3 months) for inactive accounts. To help you remember how often account statements should be sent out, think "AIM":

A = Active account (monthly)

I = Inactive account (quarterly)

M = Mutual fund (semiannually)