FINRA SIE EVALUATION TEST QUESTIONS AND
ANSWERS SET A+
✔✔an associated person who is not a registered representative is permitted to engage
in which of the following activities?
accept an unsolicited customer order
provide account opening forms to a new customer
discuss the attributes of a particular investment product
prequalify prospective customers as to investment objectives - ✔✔provide account
opening forms to a new customer
✔✔a transaction in which a writer covers a position by purchasing an option is called:
closing sale
closing purchase
opening sale
opening purchase - ✔✔closing purchase
✔✔which of the following actions is required of a broker-dealer's anti-money laundering
program?
designating an AML compliance officer
filing of the firm's AML program with FINRA
conducting background checks of all employees
identifying to regulators the employees responsible for Currency Transaction Reports -
✔✔designating an AML compliance officer
✔✔Under the Securities Act of 1933, registration is required for which of the following
securities?
Eurodollar bonds
municipal securities
American depository receipts (ADR's)
securities issued by the federal government - ✔✔ADR's
, ✔✔Under Federal Reserve Regulation T, a 90-day restriction is imposed when a
customer opens and closes which of the following positions?
same stock on the same day in a margin account
same stock in different accounts on the same day
the same stock in different account in the same household
the same stock in a cash account without paying for the stock in full - ✔✔the same
stock in a cash account without paying for the stock in full
✔✔the last transaction in XYZ 5.50s 2030 was at 102. this bond is selling at
par
premium
discount
asset value - ✔✔premium
✔✔Upon expiration, all in-the-money S&P 100 index call options are settled by the
delivery of which of the following?
cash
S&P 100 index stocks
S&P ETF's
same number of S&P 100 index put options - ✔✔cash
✔✔Roth 401(K) and Roth individual retirement accounts (IRA's) plans share which of
the following features?
contributions are made pretax
neither account has maximum contribution limits
neither account is subject to early distribution penalties
qualified distributions are excluded from federal income tax - ✔✔qualified distributions
are excluded from federal income tax
✔✔a customer buys 1 ABC Jan 35 put for a premium 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?
$3
$32
$35
$38 - ✔✔$38
✔✔Under FINRA rules, which of the following activities by a registered representative
requires written notification to her firm?
volunteering as a youth soccer league coach
gambling resulting in winnings in excess of $10k
driving part time for a transportation network company on weekend
selling nonproprietary investment company securities products through her firm -
✔✔driving part time for a transportation network company on weekends
ANSWERS SET A+
✔✔an associated person who is not a registered representative is permitted to engage
in which of the following activities?
accept an unsolicited customer order
provide account opening forms to a new customer
discuss the attributes of a particular investment product
prequalify prospective customers as to investment objectives - ✔✔provide account
opening forms to a new customer
✔✔a transaction in which a writer covers a position by purchasing an option is called:
closing sale
closing purchase
opening sale
opening purchase - ✔✔closing purchase
✔✔which of the following actions is required of a broker-dealer's anti-money laundering
program?
designating an AML compliance officer
filing of the firm's AML program with FINRA
conducting background checks of all employees
identifying to regulators the employees responsible for Currency Transaction Reports -
✔✔designating an AML compliance officer
✔✔Under the Securities Act of 1933, registration is required for which of the following
securities?
Eurodollar bonds
municipal securities
American depository receipts (ADR's)
securities issued by the federal government - ✔✔ADR's
, ✔✔Under Federal Reserve Regulation T, a 90-day restriction is imposed when a
customer opens and closes which of the following positions?
same stock on the same day in a margin account
same stock in different accounts on the same day
the same stock in different account in the same household
the same stock in a cash account without paying for the stock in full - ✔✔the same
stock in a cash account without paying for the stock in full
✔✔the last transaction in XYZ 5.50s 2030 was at 102. this bond is selling at
par
premium
discount
asset value - ✔✔premium
✔✔Upon expiration, all in-the-money S&P 100 index call options are settled by the
delivery of which of the following?
cash
S&P 100 index stocks
S&P ETF's
same number of S&P 100 index put options - ✔✔cash
✔✔Roth 401(K) and Roth individual retirement accounts (IRA's) plans share which of
the following features?
contributions are made pretax
neither account has maximum contribution limits
neither account is subject to early distribution penalties
qualified distributions are excluded from federal income tax - ✔✔qualified distributions
are excluded from federal income tax
✔✔a customer buys 1 ABC Jan 35 put for a premium 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?
$3
$32
$35
$38 - ✔✔$38
✔✔Under FINRA rules, which of the following activities by a registered representative
requires written notification to her firm?
volunteering as a youth soccer league coach
gambling resulting in winnings in excess of $10k
driving part time for a transportation network company on weekend
selling nonproprietary investment company securities products through her firm -
✔✔driving part time for a transportation network company on weekends
