Final answer:
A registered representative can generally make a loan to or borrow money from an institution that's in the business of borrowing or lending funds without notifying their employer. Such institutions have formal processes, including credit checks, cosigners, and collateral, to mitigate risk.
Step-by-step explanation:
The question pertains to the rules and regulations surrounding borrowing and lending activities of registered representatives in the financial sector.
According to standard industry regulations, a registered representative (RR) is typically allowed to borrow from or lend money to certain individuals or entities without having to notify their employer. These individuals or entities include a financial institution that is in the business of lending or borrowing funds, or a family member, provided certain conditions are met.
However, notification and approval may be required for borrowing from or lending to other parties, such as a personal friend or a business associate, to prevent conflicts of interest and ensure compliance with legal and ethical standards.
Regarding the options provided, a registered representative can borrow from or lend money to an institution that's in the business of borrowing or lending funds without notification to her employer.
Institutions typically have their own set of protocols for risk mitigation, such as credit checks, requiring a cosigner, or collateral as security for the loan. This formalized process of lending reduces the risk for both the financial institution and the employee's brokerage firm, thereby not necessitating notification in standard cases.