SIE EXAMPREP CERTIFICATION
EVALUATION EXAM QUESTIONS AND
ANSWERS 2026
◉ Clearing Process
Answer: Primarily establishes the obligations of funds. During
clearing, the obligations between the two parties are established and
confirmed.
◉ Settlement Process
Answer: may occur later and involves the actual transfer of funds or
securities between the two parties.
◉ Fully Disclosed Accounts
Answer: disclose the complete identity of the account holder. These
accounts are individually held and provide complete transparency
and control to individual traders.
◉ Omnibus Accounts
Answer: utilized by futures commission merchants, facilitate
managed trading for multiple individuals while ensuring their
anonymity.
,◉ Depository Trust & Clearing Corporation (DTCC)
Answer: A clearing corporation with the primary role of facilitating
the exchange, payment, and settlement process for securities
transactions. Handles Securities worth trillions of dollars daily.
◉ Options Clearing Corporation
Answer: Clearing agent for listed options contracts and is owned by
the exchanges that trade options
◉ Prime Brokerage Accounts
Answer: a suite of bundled services offered to hedge funds and other
large institutional investors by banks and wealth management firms
◉ Business Cycle
Answer: Alternating periods of economic expansion and economic
recession
◉ Expansion
Answer: A period of economic growth as measured by a rise in real
GDP. Employment is high, income rises, consumer spending is high
and debtors are paying their debts.
◉ Peak
,Answer: the height of an economic expansion, when real GDP stops
rising. The employment rate, income, and wages do not increase any
further. The demand for goods and services also stops growing,
which causes an increase in prices and ultimately, inflation.
◉ Contraction
Answer: The economic growth in this phase slows, investing
becomes cautious, and unemployment rises, which decreases
income and consumer spending leading to a tough time.
◉ Trough
Answer: Has the lowest national income and expenditure point in
the cycle. However, it also marks the beginning of the next expansion
phase. Businesses start to recover and invest in new endeavors, and
the employment rate gradually increases and starts the next phase
in the business cycle.
◉ Leading Indicators
Answer: key economic variables that economists use to predict a
new phase of a business cycle
◉ Building Permits
Answer: The number of building permits issued for private housing
plans is a leading economic indicator.
, ◉ Manufacturers' New Orders, Consumer Goods, Non-defense
Capital Goods
Answer: leading economic indicator, consumer goods produced by
manufacturers are also leading indicators.
◉ S &P 500 Index
Answer: an indicator of overall stock market performance based on
the average stock prices of 500 top U.S. companies, compiled by
Standard & Poor's
◉ Initial Claims for Unemployment Insurance
Answer: Benefits claimed by jobless citizens can serve as a leading
economic indicator. A significant number of claims indicates a weak
economy.
◉ Interest Rates Spreads
Answer: Measures the difference between a long- and short-term
interest rate. If the spread is wide, it indicates a higher growth for
future economic conditions.
◉ The Index of Industrial Production
Answer: The number of products or services industries produce as
an output. It is a coincidental indicator as it reflects the current state
of the economy.
EVALUATION EXAM QUESTIONS AND
ANSWERS 2026
◉ Clearing Process
Answer: Primarily establishes the obligations of funds. During
clearing, the obligations between the two parties are established and
confirmed.
◉ Settlement Process
Answer: may occur later and involves the actual transfer of funds or
securities between the two parties.
◉ Fully Disclosed Accounts
Answer: disclose the complete identity of the account holder. These
accounts are individually held and provide complete transparency
and control to individual traders.
◉ Omnibus Accounts
Answer: utilized by futures commission merchants, facilitate
managed trading for multiple individuals while ensuring their
anonymity.
,◉ Depository Trust & Clearing Corporation (DTCC)
Answer: A clearing corporation with the primary role of facilitating
the exchange, payment, and settlement process for securities
transactions. Handles Securities worth trillions of dollars daily.
◉ Options Clearing Corporation
Answer: Clearing agent for listed options contracts and is owned by
the exchanges that trade options
◉ Prime Brokerage Accounts
Answer: a suite of bundled services offered to hedge funds and other
large institutional investors by banks and wealth management firms
◉ Business Cycle
Answer: Alternating periods of economic expansion and economic
recession
◉ Expansion
Answer: A period of economic growth as measured by a rise in real
GDP. Employment is high, income rises, consumer spending is high
and debtors are paying their debts.
◉ Peak
,Answer: the height of an economic expansion, when real GDP stops
rising. The employment rate, income, and wages do not increase any
further. The demand for goods and services also stops growing,
which causes an increase in prices and ultimately, inflation.
◉ Contraction
Answer: The economic growth in this phase slows, investing
becomes cautious, and unemployment rises, which decreases
income and consumer spending leading to a tough time.
◉ Trough
Answer: Has the lowest national income and expenditure point in
the cycle. However, it also marks the beginning of the next expansion
phase. Businesses start to recover and invest in new endeavors, and
the employment rate gradually increases and starts the next phase
in the business cycle.
◉ Leading Indicators
Answer: key economic variables that economists use to predict a
new phase of a business cycle
◉ Building Permits
Answer: The number of building permits issued for private housing
plans is a leading economic indicator.
, ◉ Manufacturers' New Orders, Consumer Goods, Non-defense
Capital Goods
Answer: leading economic indicator, consumer goods produced by
manufacturers are also leading indicators.
◉ S &P 500 Index
Answer: an indicator of overall stock market performance based on
the average stock prices of 500 top U.S. companies, compiled by
Standard & Poor's
◉ Initial Claims for Unemployment Insurance
Answer: Benefits claimed by jobless citizens can serve as a leading
economic indicator. A significant number of claims indicates a weak
economy.
◉ Interest Rates Spreads
Answer: Measures the difference between a long- and short-term
interest rate. If the spread is wide, it indicates a higher growth for
future economic conditions.
◉ The Index of Industrial Production
Answer: The number of products or services industries produce as
an output. It is a coincidental indicator as it reflects the current state
of the economy.
