Nevada Freight Broker Licensing Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. What is the primary role of a freight broker in transportation logistics?
A. Transport freight using owned vehicles
B. Manufacture shipping containers
C. Act as an intermediary between shippers and carriers
D. Inspect commercial vehicles
Answer: C
A freight broker facilitates transportation by arranging shipments
between shippers and authorized carriers without taking possession
of the cargo.
2. Which federal agency regulates interstate freight brokers in the United
States?
A. Department of Energy
B. Federal Motor Carrier Safety Administration
C. Environmental Protection Agency
D. Occupational Safety and Health Administration
Answer: B
The Federal Motor Carrier Safety Administration oversees licensing
and regulatory compliance for interstate freight brokers.
3. What license is typically required to operate as a freight broker?
A. Commercial Driver’s License
B. Broker Authority (MC Number)
C. Vehicle Registration Certificate
D. Import/Export Permit
Answer: B
, A freight broker must obtain broker authority, commonly referred to
as an MC number, from the FMCSA.
4. What financial requirement must a freight broker meet?
A. $10,000 bond only
B. Proof of warehouse ownership
C. $75,000 surety bond or trust fund
D. State tax clearance only
Answer: C
Federal law requires freight brokers to maintain a $75,000 surety
bond or trust fund to protect shippers and carriers.
5. What is the purpose of a surety bond in freight brokerage?
A. To insure vehicles
B. To guarantee payment to carriers and shippers
C. To cover fuel costs
D. To purchase equipment
Answer: B
The surety bond ensures financial accountability and protects parties
from broker misconduct or nonpayment.
6. Which document outlines the terms between a broker and carrier?
A. Bill of Lading
B. Carrier Agreement
C. Title Certificate
D. Inspection Report
Answer: B
A carrier agreement defines responsibilities, payment terms, and
service conditions between broker and carrier.
7. What is a Bill of Lading?
A. Insurance policy
B. Employment contract
C. Shipping contract and receipt
D. Tax document
Answer: C
The Bill of Lading serves as a contract of carriage and proof of
shipment between shipper and carrier.
, 8. Which entity determines freight rates in a competitive market?
A. Federal government
B. Broker only
C. Market forces of supply and demand
D. State police
Answer: C
Freight rates are generally determined by supply and demand in the
transportation market.
9. What must a broker verify before assigning a load to a carrier?
A. Carrier’s color preference
B. Carrier’s insurance and authority
C. Driver’s age only
D. Vehicle manufacturer
Answer: B
Brokers must confirm that carriers have valid operating authority
and adequate insurance coverage.
10. Which insurance is typically required for carriers?
A. Life insurance
B. Cargo and liability insurance
C. Home insurance
D. Dental insurance
Answer: B
Carriers must maintain cargo and liability insurance to protect
against losses and damages.
11. What is double brokering?
A. Paying twice for fuel
B. Assigning a load without authorization
C. Operating two offices
D. Using two drivers
Answer: B
Double brokering occurs when a broker reassigns a load to another
broker without permission, often violating agreements.
12. What is the consequence of operating without broker authority?
A. Warning only
B. Automatic license renewal
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. What is the primary role of a freight broker in transportation logistics?
A. Transport freight using owned vehicles
B. Manufacture shipping containers
C. Act as an intermediary between shippers and carriers
D. Inspect commercial vehicles
Answer: C
A freight broker facilitates transportation by arranging shipments
between shippers and authorized carriers without taking possession
of the cargo.
2. Which federal agency regulates interstate freight brokers in the United
States?
A. Department of Energy
B. Federal Motor Carrier Safety Administration
C. Environmental Protection Agency
D. Occupational Safety and Health Administration
Answer: B
The Federal Motor Carrier Safety Administration oversees licensing
and regulatory compliance for interstate freight brokers.
3. What license is typically required to operate as a freight broker?
A. Commercial Driver’s License
B. Broker Authority (MC Number)
C. Vehicle Registration Certificate
D. Import/Export Permit
Answer: B
, A freight broker must obtain broker authority, commonly referred to
as an MC number, from the FMCSA.
4. What financial requirement must a freight broker meet?
A. $10,000 bond only
B. Proof of warehouse ownership
C. $75,000 surety bond or trust fund
D. State tax clearance only
Answer: C
Federal law requires freight brokers to maintain a $75,000 surety
bond or trust fund to protect shippers and carriers.
5. What is the purpose of a surety bond in freight brokerage?
A. To insure vehicles
B. To guarantee payment to carriers and shippers
C. To cover fuel costs
D. To purchase equipment
Answer: B
The surety bond ensures financial accountability and protects parties
from broker misconduct or nonpayment.
6. Which document outlines the terms between a broker and carrier?
A. Bill of Lading
B. Carrier Agreement
C. Title Certificate
D. Inspection Report
Answer: B
A carrier agreement defines responsibilities, payment terms, and
service conditions between broker and carrier.
7. What is a Bill of Lading?
A. Insurance policy
B. Employment contract
C. Shipping contract and receipt
D. Tax document
Answer: C
The Bill of Lading serves as a contract of carriage and proof of
shipment between shipper and carrier.
, 8. Which entity determines freight rates in a competitive market?
A. Federal government
B. Broker only
C. Market forces of supply and demand
D. State police
Answer: C
Freight rates are generally determined by supply and demand in the
transportation market.
9. What must a broker verify before assigning a load to a carrier?
A. Carrier’s color preference
B. Carrier’s insurance and authority
C. Driver’s age only
D. Vehicle manufacturer
Answer: B
Brokers must confirm that carriers have valid operating authority
and adequate insurance coverage.
10. Which insurance is typically required for carriers?
A. Life insurance
B. Cargo and liability insurance
C. Home insurance
D. Dental insurance
Answer: B
Carriers must maintain cargo and liability insurance to protect
against losses and damages.
11. What is double brokering?
A. Paying twice for fuel
B. Assigning a load without authorization
C. Operating two offices
D. Using two drivers
Answer: B
Double brokering occurs when a broker reassigns a load to another
broker without permission, often violating agreements.
12. What is the consequence of operating without broker authority?
A. Warning only
B. Automatic license renewal
