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Random SIE Exam Practice Questions & Answers. 100% Accurate. Rated A+

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Random SIE Exam Practice Questions & Answers. 100% Accurate. Rated A+ When is interest on Treasury notes paid? a) Quarterly b) Semiannually c) Annually d) At maturity - ✔✔b) Semiannually 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 responses describes an advantage of index funds? a) The protection of principal during bearish markets b) High turnover to take advantage of market opportunities c) Higher management fees due to active mgmt of the fund d) Lower mgmt fees due to passive mgmt of the fund - ✔✔d) Lower mgmt fees due to passive mgmt of the fund A customer has a cash balance in her account together w/ long positions in several securities. She has made no securities transactions in the act during the past 18 months. How often must the firm send her act stmt? a) Monthly b) Quarterly c) Semiannually d) Annually - ✔✔b) Quarterly Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer opens and closes which of the following positions? a) The same stock on the same day in a margin account b) The same stock in different accounts on the same day c) The same stock in different account in the same household d) The same stock in a cash account w/o paying for the stock in full - ✔✔d) the same stock in a cash account w/o paying for the stock in full Under the Securities Act of 1933, registration is required for which of the following securities? a) Eurodollar bonds b) Municipal Securities c) American Depository Receipts (ADRs) d) Securities issued by the federal government - ✔✔d) American Depositary Receipts (ADRs) A 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 - ✔✔b) Call date and call price The computation of dollar prices and accrued interest on municipal bonds is normally on what calendar basis? a) 30/360 b) 30/365 c) Actual/360 d) Actual/365 - ✔✔a) 30/360 A registered representative is reviewing the following portfolio: -30% ABC Energy -30% XYZ Health Care Company -30% Exchange-traded fund (tracks the S&P 500) -10% Money Market Fund Which of the following risks is inherent in this portfolio? a) Credit b) Liquidity c) Political d) Nonsystematic - ✔✔d) Nonsystematic Company ABC announces a 20% stock dividend for its common shareholders. If a customer holds 1,000 shares at $50, what is the new price and number of shares following the payment of the stock dividend? a) 800 shares at $62.50 b) 1,000 shares at $41.67 c) 1,200 shares at $41.67 d) 1,200 shares at $50.00 - ✔✔c) 1,200 shares at $41.67 - 1,000 x 1.2 and $50/1.2 To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following products does a corporation issue? a) Puts b) Rights c) Futures d) Preferred stock - ✔✔b) rights Which of the following products is adversely impacted if the issuer's credit rating is downgraded? a) Mutual Funds b) Unit investment trusts (UITs) c) Exchange-traded funds (ETFs) d) Exchange-traded notes (ETNs) - ✔✔d) Exchange-traded notes (ETNs) Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the following investors? a) Financial institutions b) Accredited investors c) Qualified institutional buyers (QIBs

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