Chapter 3 Review Questions

Which of the following is the foundation of ethics for the financial services agent?

The Golden Rule
The legal system
Compliance requirements

What makes a system of ethics essential?

A limited supply of goods
Because individuals exist in society
Its fairness
It is the only method to adjudicate disputes

The following is a fundamental method of resolving disputes.

Both a and b
Neither a nor b

What is the common thread in unethical sales practices?

The practices were illegal
They misled the customer
They led to the customer’s monetary loss
They were forbidden by all insurers

Which of the following is NOT a necessary component of a profession?

Specialized knowledge
“Service before income” outlook
Opportunity for substantial income
A code of professional ethics