FINRA SIE PAPER ACTUAL QUESTIONS AND
ANSWERS SET A+
✔✔when a broker-dealer charges a commission on a securities transaction, it has acted
as:
an agent
a principal
underwriter
a market maker - ✔✔agent
✔✔at issue, which of the following debt securities mature in one year or less?
FNMA bonds
GNMA bonds
treasury notes
money market instruments - ✔✔money market instruments
✔✔FinCEN accomplishes its mission to safeguard the financial system from the abuses
of financial crime, including terrorist financing and money laundering, by enforcing:
SEC regulations
the Bank Secrecy Act
the Securities Act of 1933
the Investment Company Act of 1940 - ✔✔the Bank Secrecy Act
✔✔Stability in the value of a debt portfolio is greatest when:
interest rates are rising
interest rates are falling
maturities of the debt securities are long
maturities of the debt securities are short - ✔✔maturities of the debt securities are short
✔✔which of the following investment risks is the greatest risk in a variable life insurance
policy?
credit risk
market risk
, inflation risk
interest rate risk - ✔✔market risk
✔✔under Rule 144A, an issuer of restricted stock is permitted to sell to which of the
following investors?
financial institutions
accredited investors
qualified institutional buyers
non accredited investors who have previously purchased restricted stock - ✔✔qualified
institutional buyers (QIBs)
✔✔A registered representative who wants to place a mutual fund advertisement must
obtain written approval from which of the following parties?
FINRA
each state's securities administrator
a register principal of the RR's firm
the investment management division of the appropriate regional SEC office - ✔✔a
registered principal of the RR's firm
✔✔which of the following stakeholders has first claim priority in a chapter 11
proceeding?
equity holders
secured debt holders
unsecured debt holders
administrative claim holders - ✔✔secured debt holders
✔✔a registered representative wants to participate in a private securities transaction.
which of the following actions must the RR take?
request a meeting with his supervisor to lay out the structure of the deal
call his supervisor and inform her of the deal and the RR's potential involvement
send written notice to his supervisor outlining the activity and compensation structure
initiate the paperwork required by the policies of the firm once the activity has begun -
✔✔send written notice to his supervisor outlining the activity and compensation
structure
✔✔a RR is reviewing the following portfolio: 30% ABC Energy company, 30% health
care company, 30% ETF, 10% money market funds. which of the following risks is
inherent in this portfolio?
credit
liquidity
political
nonsystematic - ✔✔nonsystematic
✔✔which of the following products is adversely impacted if the issuer's credit rating is
downgraded?
ANSWERS SET A+
✔✔when a broker-dealer charges a commission on a securities transaction, it has acted
as:
an agent
a principal
underwriter
a market maker - ✔✔agent
✔✔at issue, which of the following debt securities mature in one year or less?
FNMA bonds
GNMA bonds
treasury notes
money market instruments - ✔✔money market instruments
✔✔FinCEN accomplishes its mission to safeguard the financial system from the abuses
of financial crime, including terrorist financing and money laundering, by enforcing:
SEC regulations
the Bank Secrecy Act
the Securities Act of 1933
the Investment Company Act of 1940 - ✔✔the Bank Secrecy Act
✔✔Stability in the value of a debt portfolio is greatest when:
interest rates are rising
interest rates are falling
maturities of the debt securities are long
maturities of the debt securities are short - ✔✔maturities of the debt securities are short
✔✔which of the following investment risks is the greatest risk in a variable life insurance
policy?
credit risk
market risk
, inflation risk
interest rate risk - ✔✔market risk
✔✔under Rule 144A, an issuer of restricted stock is permitted to sell to which of the
following investors?
financial institutions
accredited investors
qualified institutional buyers
non accredited investors who have previously purchased restricted stock - ✔✔qualified
institutional buyers (QIBs)
✔✔A registered representative who wants to place a mutual fund advertisement must
obtain written approval from which of the following parties?
FINRA
each state's securities administrator
a register principal of the RR's firm
the investment management division of the appropriate regional SEC office - ✔✔a
registered principal of the RR's firm
✔✔which of the following stakeholders has first claim priority in a chapter 11
proceeding?
equity holders
secured debt holders
unsecured debt holders
administrative claim holders - ✔✔secured debt holders
✔✔a registered representative wants to participate in a private securities transaction.
which of the following actions must the RR take?
request a meeting with his supervisor to lay out the structure of the deal
call his supervisor and inform her of the deal and the RR's potential involvement
send written notice to his supervisor outlining the activity and compensation structure
initiate the paperwork required by the policies of the firm once the activity has begun -
✔✔send written notice to his supervisor outlining the activity and compensation
structure
✔✔a RR is reviewing the following portfolio: 30% ABC Energy company, 30% health
care company, 30% ETF, 10% money market funds. which of the following risks is
inherent in this portfolio?
credit
liquidity
political
nonsystematic - ✔✔nonsystematic
✔✔which of the following products is adversely impacted if the issuer's credit rating is
downgraded?
