Which of the following statements best describes the permissibility of a borrowing arrangement between a...

Step by Step Explanation:

FINRA Rule 3240: Permits borrowing or lending arrangements between RRs and customers under specific conditions, including familial relationships, provided the arrangement complies with the firm’s policies.

Incorrect Options:

A: FINRA approval is not required; firm approval is.

B: A written agreement alone is insufficient without firm approval.

C: Commercially reasonable terms are not the sole criterion for permissibility.

References:

FINRA Rule 3240 (Borrowing from or Lending to Customers): FINRA Rule 3240.