FINRA SIE Practice Exam Questions with accurate answers, 100% Verified.

FINRA SIE Practice Exam Questions with accurate answers, 100% Verified. In a period of low inflation and economic recession, the Federal Reserve is expected to take which of the following actions? A) Decrease Taxes ...

FINRA SIE Practice Exam Questions with accurate answers, 100% Verified. In a period of low inflation and economic recession, the Federal Reserve is expected to take which of the following actions? A) Decrease Taxes B) Require banks to increase reserve C) Buy bonds in the open market - ✔✔Buy bonds in the open market Under FINRA rules which of the following activities by a registered representative requires written notification to her firm? A) Gambling resulting in winnings in excess of $10,000 B) Driving part time for a transportation network company on weekends C) Selling non proprietary investment company securities through her firm - ✔✔Driving part time for a transportation network company on weekends 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 - ✔✔The Bank Secrecy Act Call protection is most valuable to a bond owner when bond prices are generally. A) Rising B) Falling C) Stable D) Fluctuating - ✔✔Rising 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 - ✔✔Treasury Bonds 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 - ✔✔Profit limited and loss limited Under SEC regulation S-P(Consumer Privacy) which of the following information must a firm include in its customer privacy and opt-out notices? A) The address of the firms website B) The fee to opt out from the privacy program C) The deadline by which to opt out from the privacy program D) The policies to protect the security of nonpublic information - ✔✔The policies to protect the security of nonpublic information The last transaction in XYZ 5.50's 2030 was at 102. This bond is selling at: A) Par B) A premium C) A discount D) asset value - ✔✔A premium Broker-Dealer ABC seeks to underwrite a municipal securities offering by a local town in which the mayor is currently seeking re-election. A municipal finance professional who resides in the town and works for ABC contributed $200 to the mayor's re-election campaign 13 months ago. If the employee wants to support the campaign further without impacting the municipal securities business of the firm, he is permitted to make an additional contribution of up to what amount. A) $50 B) $100 C) $150 D) $250 - ✔✔$50 At issue, which of the following debt securities mature in one year or less? A) FNMA bonds B) GNMA bonds C) Treasury notes D) Money market instruments - ✔✔Money market instruments Under normal circumstances, a customer letter of intent on a mutual fund purchase is valid for what maximum period of time? A) 3 months B) 6 months C) 13 months D) 24 months - ✔✔13 months Which of the following statements is true regarding the concept of an annuity contract? A) Payouts of an investment in a non qualified 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 amounts. - ✔✔The kind of annuity selected partly determines the payment amounts to the annuitant 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 - ✔✔Maturities of the debt securities are short Which of the following investments are generally traded according to their average life rather than their stated maturity dates? A) corporate bonds B) Government bonds C) Asset-backed securities - ✔✔Asset-back securities In the even of a stock split, which of the following parties is required to maintain a record of the shareholders eligible to receive the additional shares? A) DTC B) Issuer C) Custodian D) Transfer agent - ✔✔Transfer agent Which of the following actions violates FINRA rules regarding selling away? A) Recommending to a customer the services of another broker-dealer B) Advising customers to buy mutual funds at amounts just below a discount level C) Engaging in a private securities transactions without written prior consent of the employing BD - ✔✔Engaging in private securities transactions without written prior consent of the employing BD 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 - ✔✔A closing purchase UTMA accounts are opened under the tax ID of the: A) minor B) donor C) parent D) custodian - ✔✔Minor Which of the following statements is true about treasury stock? A) It has voting rights B) It receives dividends C) It is issued stock that has been subsequently reacquired by the corporation. D) it is authorized stock that has not been issued and is held in the corporation treasury. - ✔✔It is issued stock that has been subsequently reacquired by the corporation A registered representative is reviewing the following portfolio: - 30% ABC Energy Company -30% XYZ health Care Company -30% Exchange-traded fund -10% Money market funds A) Nonsystematic B) Liquidity C) Credit D) Political - ✔✔Nonsystematic No-load mutual funds may have lower expense ratios than load mutual funds for which of the following reasons? A) No-load funds do not charge 12b-1 fess B) No-Load funds are not permitted to charge a 12b-1 fee greater then 25 basis points C) Fund management fees for no-load funds are always lower than load funds - ✔✔No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points In which of the following situations is an employee of a public company permitted to trade upon information without violating insider trading laws? A) An independent securities analyst explains to the employee why the earnings for the company next quarter could be markedly poorer than expected B) The employee's spouse works in the corporate headquarters and shares with him a conversation overheard at work regarding possible acquisition targets. C) The employees neighbor works for the government and informs him that the government will award a major contract to the company next month. - ✔✔An independent securities analyst explains to the employee why the earnings for the company next quarter could be markedly poorer than expected. Under FINRA rules, noncash compensation connected with the sale of variable contracts includes all of the following items except: A) gifts B)meals C) commisions D) lodging - ✔✔Commissions The call provision of a bond stipulates which of the following factors? A) maturity date B) Call date and call price C) Original issue discount D) Coupon rate and call date - ✔✔Call dat and call price When selling a fixed amount of a base currency to purchase a counter currency, which of the following factors is primarily used to determine how much of the counter currency the customer will receive? A) The spot exchange rate B) The counter currency inflation rate C) The trade balance between the two countries - ✔✔The spot exchange rate All of the following risks apply to both foreign and do