Financial Industry Regulatory Authority (FINRA) Practice Exam 2026 - Free FINRA Practice Questions and Study Guide

The statement that monthly statements are not needed if only interest is received is false because regulations require that customers receive account statements regularly to ensure transparency and to provide them with a clear view of their investment activities. In the case of accounts that primarily generate interest, periodic statements are still necessary to keep customers informed about their account status, especially since balances and accrued interest can fluctuate.

Monthly statements provide detailed insight into all account transactions, fees, and other important information, which helps customers manage and oversee their accounts effectively. Moreover, holding firms to the requirement of providing regular account statements helps prevent potential misunderstandings and ensures compliance with regulatory standards, which emphasize the importance of maintaining transparent communication with customers.