Experience the Quality With Free Series 27 License Exam Questions That Helps Candidates Pass

Liquidity risk is the danger that assets cannot be sold quickly without discounting. For broker-dealers, this may impair the ability to meet obligations and maintain net capital. Thus, A is correct.

SEC Rule 17a-5 requires broker-dealers to file audited financial statements within 60 days of fiscal year-end. This ensures timely oversight of financial compliance. Rules 17a-3 and 17a-4 concern records, while 15c3-1 concerns net capital. Thus, C is correct.

A Term Repo extends beyond overnight maturity (days to months), providing longer-term secured financing. Commercial paper is unsecured, Fed Funds are overnight, and Treasuries are investments, not funding mechanisms. Thus, A is correct.