General Securities Sales Supervisor (Series10) Practice Exam

If an MFP gives $100 to a candidate's primary campaign and $200 to their general election campaign, what is true?

1. The contributions exceed the limit, resulting in a ban

2. No ban since each campaign limit is not exceeded

3. The MFP is banned from contributing to any campaigns

4. The rule does not apply to MFPs therefore no ban

The correct answer is: No ban since each campaign limit is not exceeded

The correct answer highlights that the contributions made by the Municipal Finance Professional (MFP) do not exceed the established limits for either the primary or general election campaigns. MFPs are subject to specific contribution restrictions, and in this scenario, the amounts given to each campaign are within permissible limits. For candidates, there are typically separate contribution limits for primary and general election campaigns, allowing contributors to give a specified amount for each. Since the MFP contributed $100 to the primary campaign and $200 to the general election campaign, these contributions are compliant with candidate-specific limits. Understanding that the rules set forth for MFPs primarily focus on the total amount contributed to candidates and the timing of those contributions is essential. As long as contributions do not exceed the established per-campaign limits, the MFP is not subject to any ban or restriction on future contributions. This contributes to a broader understanding of campaign finance regulations and highlights the significance of staying within contribution thresholds to maintain eligibility for further participation in campaign financing.