Honesty and integrity

Transparency and disclosure

Objectivity and independence

Conflicts of interest

To maximize their own profits

To generate high returns for their clients

To act in the best interests of their clients

To comply with all applicable laws and regulations

To create a competitive advantage for firms

To increase profits for shareholders

To establish a framework for ethical decision-making

To reduce the risk of legal liability

A fiduciary duty requires advisors to act in their clients' best interests, while a suitability standard requires them to recommend investments that are appropriate for their clients' risk tolerance.

A fiduciary duty requires advisors to disclose all material information to their clients, while a suitability standard requires them to disclose only the information that is necessary for their clients to make informed decisions.

A fiduciary duty applies to all financial advisors, while a suitability standard applies only to registered representatives.

A fiduciary duty is a legal requirement, while a suitability standard is a regulatory requirement.

To promote fair, orderly, and efficient markets

To protect investors from fraud and abuse

To ensure that all financial institutions are adequately capitalized

All of the above

To regulate the securities industry

To protect investors from fraud and abuse

To ensure that all financial institutions are adequately capitalized

All of the above

A Ponzi scheme pays returns to investors from the money invested by new investors, while a pyramid scheme pays returns to investors from the money invested by new recruits.

A Ponzi scheme is illegal, while a pyramid scheme is legal.

A Ponzi scheme is typically operated by a single individual or group, while a pyramid scheme is typically operated by a network of individuals.

All of the above

To prevent money laundering

To combat terrorist financing

To promote financial stability

All of the above

Insider trading involves trading on material nonpublic information, while front running involves trading ahead of a client.

Insider trading is illegal, while front running is legal.

Insider trading typically involves trading in the stock market, while front running typically involves trading in the bond market.

All of the above

To reform the financial industry and protect consumers

To prevent another financial crisis

To promote economic growth

All of the above

Credit unions are owned by their members, while banks are owned by their shareholders.

Credit unions typically offer lower interest rates on loans and higher interest rates on deposits than banks.

Credit unions are not-for-profit organizations, while banks are for-profit organizations.

All of the above

To insure deposits up to a certain amount

To promote financial stability

To protect consumers from fraud and abuse

All of the above

A mortgage is a loan used to purchase a home, while a home equity loan is a loan secured by the equity in a home.

A mortgage typically has a lower interest rate than a home equity loan.

A mortgage is typically paid off over a longer period of time than a home equity loan.

All of the above

To protect consumers from unfair, deceptive, or abusive financial practices

To promote financial literacy

To ensure that consumers have access to affordable financial products and services

All of the above

A debit card deducts money from your checking account when you make a purchase, while a credit card allows you to borrow money to make a purchase.

A debit card typically has a lower interest rate than a credit card.

A debit card is typically more secure than a credit card.

All of the above