The correct answer is letter B. I and IV
The MSRB says that if a control relationship exists between a municipal securities dealer and the issuer whose bonds are recommended by that dealer, the nature of the relationship must be disclosed to the customer. Here, the Mayor of Little Rock is a director of a Little Rock broker-dealer and a control relationship exists. If the dealer recommends the purchase of Little Rock bonds, the nature of the control relationship must be disclosed to the customer.
