Finra Exam Questions With Complete Solutions

FINRA EXAM QUESTIONS WITH
COMPLETE SOLUTIONS

Mediation |- |CORRECT |ANSWER✔✔-Arbitration |and |______ |are |two |distinct |methods |of |
resolving |securities |disputes |between |two |or |more |parties. |Disputes, |claims |or |controversies |
arising |out |of |business |dealings |with |any |FINRA |brokerage |firm |can |be |resolved |in |arbitration |
or |______.



Arbitration |- |CORRECT |ANSWER✔✔-______ |is |a |formal |dispute |resolution |process |in |which |
the |parties—customers, |brokers, |or |brokerage |firms |making |or |responding |to |a |claim—select |a
|neutral, |third |party |called |a(n) |______, |to |listen |to |the |arguments |set |forth |by |parties, |study |


the |testimonial |and/or |documentary |evidence, |and |render |a |decision |on |the |matter. |By |
______ |your |claim, |you |forego |the |opportunity |to |have |the |same |matter |decided |by |a |court |of
|law |because |an |______ |award |is |final |and |binding.




Mediation |- |CORRECT |ANSWER✔✔-______ |is |an |informal, |voluntary |and |non-binding |process. |
A(n) |______ |facilitates |negotiations |between |disputing |parties. |The |______'s |role |is |to |help |
the |parties |find |a |mutually |acceptable |solution |to |the |dispute.



First |- |CORRECT |ANSWER✔✔-Arbitration |and |mediation |are |important |methods |of |dispute |
resolution |that |have |been |used |successfully |by |the |securities |industry |and |others, |but |they |
generally |should |not |be |your |______ |steps.



Arbitration |- |CORRECT |ANSWER✔✔-______ |is |a |method |of |resolving |a |dispute |between |two |
or |more |parties |by |neutral, |qualified |individuals, |who |serve |as |decision-makers |after |weighing |
the |facts |of |each |case |presented. |The |decision-makers |are |called |______. |______ |of |securities |
disputes |against |brokerage |firms, |brokers, |or |both |provides |a |prompt |and |inexpensive |means |
of |resolving |issues. |There |are |certain |laws |governing |the |conduct |of |an |______ |proceeding. |
The |most |important |of |these |is |perhaps |the |fact |that |an |______ |award |is |final |and |binding, |

,subject |to |review |by |a |court |only |on |a |very |limited |basis. |Parties |should |also |recognize |that |
______ |their |claims |precludes |them |from |pursuing |the |same |claims |through |the |courts.



Request |for |Mediation |- |CORRECT |ANSWER✔✔-You |may |file |a |______ |______ |______ |at |any |
time, |whether |or |not |you |have |already |filed |an |arbitration |claim. |However, |______ |is |a |
voluntary |process |— |no |party |is |required |to |______ |a |dispute. |When |we |receive |your |request,
|FINRA |Dispute |Resolution |staff |will |contact |the |other |party |or |parties |to |the |dispute |to |explain


|the |______ |process, |and |seek |their |agreement |to |______.




Mediation |- |CORRECT |ANSWER✔✔-Initiate |a |______: |This |is |the |first |step |of |the |______ |
process. |When |one |party |expresses |an |interest |in |______, |FINRA |will |contact |the |other |parties
|to |determine |their |interest, |The |parties |may |submit |all |or |some |of |the |issues |in |dispute |to |


______, |and |may |______ |selected |substantive |or |procedural |issues.



Complaint |- |CORRECT |ANSWER✔✔-If |you |file |a |______ |with |the |Investor |______ |Center, |
FINRA |can |investigate |any |potentially |fraudulent |or |suspicious |activities |by |brokerage |firms |or |
registered |representatives. |You |must |initiate |an |arbitration |or |mediation |to |pursue |monetary |
damages |or |other |restitution.



Attorney |- |CORRECT |ANSWER✔✔-You |should |consider |hiring |an |______ |to |represent |you |
during |the |arbitration |or |mediation |proceedings |to |provide |direction |and |advice. |Even |if |you |
do |not |choose |to |hire |an |______, |brokerage |firms |are |generally |represented |by |an |______. |If |
you |cannot |afford |an |______, |some |law |schools |provide |legal |representation |through |
securities |arbitration |clinics. |You |can |also |check: |(1) |American |Bar |Association;

(2) |Public |Investors |Arbitration |Bar |Association; |(3) |Martindale |- |Hubbell



Database |- |CORRECT |ANSWER✔✔-FINRA's |Arbitration |Awards |______ |enables |users |to |search |
online |for |FINRA |and |NASD |arbitration |awards |free |of |charge, |seven |days |a |week.



Exchanges |- |CORRECT |ANSWER✔✔-FINRA |provides |dispute |resolution |services |for |several |
______ |that |are |not |able |to |staff |or |operate |a |dispute |resolution |program. |These |services |
include |administration |of |the |______'s |member-member, |member-investor |and |member-

,employer |securities-industry |related |disputes. |The |term |"member" |may |include |brokerage |
firms |that |are |not |members |of |FINRA.



Code |of |Mediation |Procedure |- |CORRECT |ANSWER✔✔-This |Code |contains |the |official |FINRA |
rules |governing |mediations. |(7 |pages)



Statement |of |Claim |- |CORRECT |ANSWER✔✔-The |arbitration |process |begins |with |a |party |filing |
a |______ |______ |_____ |with |FINRA. |The |party |who |files |the |______ |______ |______ |is |called |a
|claimant. |The |party |against |whom |the |______ |______ |______ |is |filed |is |called |the |


respondent. |The |______ |______ |_____ |should |provide |the |details |of |the |dispute, |including |
relevant |dates, |names |of |entities |and |individuals |involved, |and |the |type |of |relief |requested |
and |the |respondents |from |whom |the |claimant |is |seeking |relief |or |damages. |The |type |of |relief |
a |claimant |may |request, |includes, |but |is |not |limited |to, |actual |monetary |damages, |interest, |
and |specific |performance.



Answer |- |CORRECT |ANSWER✔✔-An |______ |is |a |written |document |that |specifies |the |relevant |
facts |and |available |defenses |to |the |Statement |of |Claim. |A |respondent |files |an |answer |to |the |
claimant's |Statement |of |Claim.



Number |- |CORRECT |ANSWER✔✔-The |______ |of |arbitrators |appointed |to |a |case |depends |on |
the |amount |and |type |of |relief |requested |in |the |Statement |of |Claim.



Initial |Prehearing |Conference |(IPHC) |- |CORRECT |ANSWER✔✔-Once |the |panel |is |appointed, |
FINRA |schedules |the |______ |______ |______ |(______). |The |______ |is |the |first |time |that |the |
parties |and |arbitrators |meet |to |set |the |schedule |for |the |case |and |usually |held |by |telephone. |
During |this |telephone |conference, |the |arbitration |panel |will |schedule |evidentiary |hearing |
dates, |establish |discovery |deadlines, |set |briefing |and |motion |deadlines, |determine |whether |
mediation |is |desirable, |and |address |other |preliminary |matters.



Discovery |Process |- |CORRECT |ANSWER✔✔-The |______ |______ |allows |the |parties |to |obtain |
facts |and |information |from |other |parties |to |the |arbitration |in |order |to |support |their |own |case |
and |prepare |for |the |hearing. |The |Codes |of |Arbitration |Procedure |require |parties |to |cooperate |

, with |each |other |to |the |fullest |extent |practicable |in |the |voluntary |exchange |of |documents |and |
information |to |expedite |the |arbitration |process. |The |Codes |contain |rules |that |govern |the |
______ |______, |including |making |______ |requests, |responding |to |such |requests, |objecting |to |
______ |requests, |and |arbitrator |authority |to |issue |sanctions |against |parties |for |______ |abuses.



Closing |- |CORRECT |ANSWER✔✔-After |______ |the |record, |the |arbitration |panel |considers |all |of
|the |evidence, |deliberates |together, |and |decides |what |relief |the |claimant |is |entitled |to, |if |any.




Unanimous |- |CORRECT |ANSWER✔✔-In |a |three-arbitrator |panel, |an |award |is |based |on |the |vote
|of |a |majority |of |the |arbitrators; |a |______ |decision |is |not |required.




(Rules) |Announcements |- |CORRECT |ANSWER✔✔-______ |provide |recent |updates, |changes, |and
|notifications |about |Dispute |Resolution |rules, |proposals, |and |procedures.




Filing |- |CORRECT |ANSWER✔✔-The |party |filing |a |claim |must |pay |a |______ |fee |at |the |time |the |
party |files |a |Statement |of |Claim. |The |amount |of |this |fee |is |based |on |the |total |amount |of |the |
claim |including |any |punitive |and |treble |damages |requested, |but |excludes |interest |and |
expenses.



Fee |waiver |- |CORRECT |ANSWER✔✔-Parties |may |submit |a |written |request |for |a |______ |______
|stating |the |reason(s) |that |would |make |payment |of |the |filing |fee |a |financial |hardship.




In |support |of |the |request, |parties |should |include |the |following |information |with |the |written |
request:



| a |copy |of |the |most |recently |filed |tax |return;

| two |of |the |most |recent |pay |stubs; |and

| documentation |of |garnishment |or |lien, |or |other |documents |that |evidence |hardship.