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

Question: 1 / 400

How often must a firm send an account statement if a customer has a cash balance and has not made any securities transactions in 18 months?

Monthly

Quarterly

A firm must send an account statement quarterly if a customer has a cash balance and has not made any securities transactions in the last 18 months. This requirement ensures that clients remain informed about their account activity and portfolio status, even if they are not actively trading. By sending statements every three months, firms provide a regular update, maintaining transparency and allowing customers to monitor their cash balance and any interest or fees that may apply. The quarterly frequency is aligned with regulatory expectations to protect investors and enhance communication between the firm and the client.

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Semiannually

Annually

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