75 SIE FINRA Practice EXAM Questions and Answers

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75 SIE FINRA Practice EXAM Questions and Answers UTMA Accounts are opened under the tax ID of the: A. Minor B. Donor C. Parent D. Custodian >>>A. Minor A customer buys 1 ABC Jan 35 put for a pr... emium of $3 and simultaneously buys 100 shares of ABC stock for $35 per share. The customer will break even when the stock is selling at what price per share at expiration? A. $3 B. $32 C. $35 D. $38 >>>D. $38 The owner of which of the following products is MOST exposed to inflationary risk? A. Utility Stocks B. Treasury bills C. Treasury Bonds D. Blue Chip Industrials >>>C. Treasury bonds If a market maker posts a quote of 10.00 - 10.10 [25x10], which of the following actions is the market maker willing to take? A. Sell 1,000 shares at $10.00 and buy 2,500 shares at $10.10 B. Buy 2,500 shares at $10.00. and sell 1,000 shares at $10.10 C. Sell 100 shares at $10.00 and buy 250 shares at $10.10 D. Buy 250 shares at $10.00 and sell 100 shares at $10.10 >>>B. Buy 2,500 shares at $10.00 and sell 1,000 shares at $10.10 Direct Participation Programs (DPPs) provide: A. Liquidity and transparency B. Exposure to non-correlated assets with steady returns C. Market-related correlations with higher average returns D. Investors with direct purchases of stock from public companies >>>B. Exposure to non-correlated assets with steady returns Stability in the value of a debt portfolio is greatest when:A. Interest rates are rising B. Interest rates are falling C. Maturities of the debt securities are long D. Maturities of the debt securities are short >>>D. Maturities of the debt securities are short A customer has a crash balance in her account together with long positions in several securities. She has made no securities transactions in the account during the past 18 months. How often must the firm send her an account statement? A. Monthly B. Quarterly C. Seminannually D. Annually >>>B. Quarterly FinCEN accomplishes its mission to safeguard the financial system from the abuses of financial crime, including terrorist financing and money laundering, by enforcing: A. SEC regulations B. The Bank Secrecy Act C. The Securities Act of 1933 D. The Investment Company Act of 1940 >>>B. The Bank Secrecy Act Which of the following investment risks is the greatest risk in a variable life insurance policy? A. Credit Risk B. Market Risk C. Inflation Risk D. Interest Rate Risk >>>B. Market Risk Which of the following considerations should a registered representative explain to a customer when recommending a 529 college savings plan? A. The potential deductibility of contributions from state taxes B. The potential deductibility of contributions from federal taxes C. The income eligibility restrictions to contribute to the account D. The rights of the account beneficiary to the assets at the age of majority >>>A. The potential deductibility of contributions from state taxes An investor owns 100 shares of XYZ common stock at the current market price of $50 per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split stock position will be: A. 50 shares at $25 per share B. 50 shares at $100 per shareC. 200s shares$25 per share D. 200 shares at $100 per share >>>B. 50 shares at $100 per share Which of the following outcomes are possible for the writer of a covered call option? A. Profit limited and loss limited B. Profit limited and loss unlimited C. Profit unlimited and loss limited D. Profit unlimited and loss unlimited >>>A. Profit limited and loss limited All of the following risks apply to both foreign and domestic debt instruments EXCEPT: A. Political B. Exchange C. Repayment D. Interest rate >>>B. Exchange Which of the following statements is true regarding the concept of an annuity contract? A. Payouts of an investment in a nonqualified annuity are all income-tax-free B. The kind of annuity selected partly determines the payment amounts to the annuitant C. In the case of life annuity contracts, the age and sex of the annuitant do not affect the payment amonuts D. The amounts of the periodic payments to the annuitants are determined by the performance of the insurance company's investment returns >>>B. The kind of annuity selected partly determines the payment amounts to the annuitant A transaction in which a writer covers a position by purchasing an option is called: A. a closing sale B. A closing purchase C. An opening sale D. An opening purchase >>>B. a closing purchase An associated person who is not a registered representative is permitted to engage in which of the following activities? A. Accept an unsolicited customer order B. Provide account opening forms to a new customer C. Discuss the attributes of a particular investment product D. Prequalify prospective customers as to investment objectives >>>B. Provide account opening forms to a new customer A decline in the gross domestic product (GDP) must last for at least how many quarters to be considered a recession?A. 1 quarter B. 2 quarters C. 3 quarters D. 4 quarters >>>B. 2 quarters Which of the following actions violates FINRA rules regarding selling away? A. Recommending to a customer the services of another broker-dealer (BD) B. Sharing commissions with another registered representative in the same BD C. Advising customers to buy mutual funds at amounts just below a discount level D. Engaging in private securities transactions without prior consent of the employing BD >>>D. Engaging in private securities transactions without prior consent of the employing BD [Show More]

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