General Securities Sales Supervisor (Series10) Practice Exam

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Prepare for the General Securities Sales Supervisor Exam. Practice with flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

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Which of the following positions can be held in a non-securities credit account?

Precious metals
Foreign currency options
Money market funds
Exchange traded notes

The correct answer is: Precious metals

Holding a position in precious metals within a non-securities credit account is correct because these accounts can typically include commodities and other types of tangible assets that are not classified as securities. Precious metals, such as gold, silver, platinum, and palladium, can be integrated into alternative investment strategies and do not fall under the regulatory framework that governs traditional securities. In contrast, foreign currency options and exchange-traded notes are classified as securities. They are regulated by the Securities and Exchange Commission (SEC) and would therefore not be held in a non-securities credit account. Money market funds, while they can hold cash-like instruments, are also considered securities because they are managed investment portfolios that invest in short-term, low-risk securities and are deemed registered investment products. This distinction reinforces that only commodities like precious metals can be included in a non-securities credit account.