An investment intermediary which can legally act for only one bank in receiving deposits is called a deposit:

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $25.99Unlock all

Prepare for the Qualified Financial Adviser Regulations Exam 2 with multiple choice questions, flashcards, and expert tips. Enhance your financial advising skills and confidently ace your exam!

Multiple Choice

An investment intermediary which can legally act for only one bank in receiving deposits is called a deposit:

Explanation:
The key idea is an agency relationship. When an investment intermediary is authorized to act for a bank in receiving deposits, they’re functioning as the bank’s agent, acting on behalf of that single bank. The exclusivity—being able to act for only one bank in this capacity—fits an agency arrangement where the bank designates one intermediary to solicit and collect deposits. This is different from a broker, who typically matches deals or funds between multiple parties, or an arranger, who organizes financing or funding across different institutions. So the term that best describes this role is agent.

The key idea is an agency relationship. When an investment intermediary is authorized to act for a bank in receiving deposits, they’re functioning as the bank’s agent, acting on behalf of that single bank. The exclusivity—being able to act for only one bank in this capacity—fits an agency arrangement where the bank designates one intermediary to solicit and collect deposits. This is different from a broker, who typically matches deals or funds between multiple parties, or an arranger, who organizes financing or funding across different institutions. So the term that best describes this role is agent.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy