Final answer:
A principal in a financial institution has the duty to review and approve public communication and determine a customer's investment suitability, while trading in margin accounts and answering specific investment banking questions may fall under the responsibility of other qualified professionals.
Step-by-step explanation:
The role of a principal in a financial institution includes various administrative and supervisory duties. Among these duties, reviewing and approving communication with the public is essential as it ensures that the information being disseminated is accurate and in compliance with regulatory standards. Additionally, determining a customer's investment suitability is a critical function that principals perform to ensure that the financial advice and products offered align with the customer's financial goals, risk tolerance, and investment knowledge.
Trades in margin accounts and answering investment banking questions may be handled by qualified representatives or associates under the principal's oversight, but they are not exclusive responsibilities of the principal. The principal's role includes overarching compliance and supervision rather than executing specific trades or engaging directly in investment advisory unless the principal's role specifically includes those functions.