The correct answer is B, Quarterly. Under FINRA rules, specifically those governing customer account statements, broker-dealers are required to provide account statements to customers at least quarterly if there is no activity in the account.
Step-by-step, if an account has activity (such as trades, deposits, or withdrawals), statements must be sent monthly. However, if there is no activity during a given period, the firm is still required to provide an update so the customer can review holdings, balances, and account status. In such cases, the minimum requirement is once every calendar quarter.
Choice A (monthly) applies only when there is account activity, not inactivity. Choice C (semiannually) and Choice D (annually) are incorrect because they do not meet FINRA’s minimum reporting standards and would fail to provide sufficient oversight and transparency to customers.
Providing regular statements—even when there is no activity—is an important investor protection measure. It allows customers to monitor their accounts, verify holdings, and detect any unauthorized activity or discrepancies.
Thus, for inactive accounts, firms must send statements at least quarterly, making Answer B correct.
