Whose Responsibility Is It to Determine If a Client Can

question 7

Multiple Choice

Whose responsibility is it to determine if a client can pay for the securities they purchase?

• A) the stockbroker who opens the account for the client
• B) the floor broker who places the trade on the floor of the exchange
• C) the dealer who acts as the seller in the trade
• D) the broker in charge of churning

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Definitions:

Change Blindness

A phenomenon where a person fails to notice significant changes in a visual scene, indicating limitations in attention and perception.

Cocktail Party Effect

The brain's ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as when focusing on a single conversation in a noisy environment.

Visual Action Track

A brain mechanism specialized for processing visual information related to movement and guiding physical actions in response.

Visual Perception Track

The cognitive process that interprets and organizes visual information from the environment.