Which statements are true regarding MSRB gifts and gratuities?

• A. II and IV
• B. I and IV
• C. I and III
• D. II and III

Answer: (C)

Gifts and gratuities to municipal securities professionals are tightly regulated to prevent any appearance of buying favorable treatment. Cash or cash equivalents are not allowed at all. Only gifts of de minimis value may be given, and they must fit within an annual limit per recipient and not be tied to obtaining or rewarding business.

That’s why the statements described as true align with these protections: cash gifts are prohibited, and there is a limit on non-cash gifts of minimal value that can be given to a single recipient in a year. The other statements would conflict with these safeguards—such as implying cash gifts are permissible, or suggesting there’s no annual limit or reporting requirement—so they’re not correct.