Under the nasaa statement of policy, an agent of a broker-dealer that has discretionary authority would not be subject to the prohibition on excessive trading of a customer account as long as the:
a. customer consents in writing to each recommended transaction
b. account is a non-managed fee based account
c. account has consistently increased in value
d. broker-dealer discounts the commissions charged to customers that are active traders

The correct answer in the given situation is as follow:

A. customer consents in writing to each recommended transaction

Explanation:

NASAA:

It is known as The North American Securities Administrators Association which is such regulatory body that operates in North America, Canada and Mexico regarding small businesses, local communities and public funding.

According to the NASAA statement of policy, the agent of a broker-dealer can't use any discretionary authority until unless he has written consent from the client. So, according to above statement, the broker dealer that has discretionary authority would not be subject to the prohibition on excessive trading of a customer account as long as the customer consents in writing to each recommendation transaction.

government bonds investing in something is a little like "betting" when you invest money into a certain thing you are hoping that it gains more value in the future. In return of investing that money the company gives you some money if they gain money separate from the investments.