A series 26 exam question

Here is a great series 26 exam question from the financial records section of the exam:

As it relates to subordinated loan agreements which of the following are true?
I. They must be approved by the regulators
II. They may be added to the broker dealer's net worth
III. They must be filed 30 day prior to becoming effective.
IV. They must be for a minimum of 2 years


A) I and II
B) III and IV
C) I, II and III
D) I, II, III, IV





C) All of the answers are true except that a subordinated loan is for a minimum of 1 year not 2.

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