Customer Documentation
A customer with a cash balance and long positions, but no transactions in 18 months, must receive account statements how often?
Active accounts = monthly statements. Inactive accounts with positions = quarterly. No positions = no statement required.
Complete Analysis & Legal Rationale
For inactive accounts with positions but no activity, broker-dealers must send statements at least quarterly. Active accounts with transactions during the month require monthly statements. The quarterly minimum ensures customers can monitor their holdings and detect any unauthorized activity.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.