Stc Sie Exam Final Practice

Which of the following statements is TRUE concerning periodic payment variable annuities? A. A client's number of annuity units never changes B. A client's number of accumulation units never changes C. Annuity contracts never have a beneficiary D. The monthly payout is fixed by the inflation index - Answer- A. A client's number of annuity units never changes Which of the following securities would be subject to federal securities registration requirements? A. Securities offered through a private placement B. GNMA securities C. Municipal bonds D. Mutual fund shares - Answer- D. Mutual fund shares Mutual fund shares would be subject to registration requirements at the state and federal level. The other securities are exempt from federal and state registration requirements. Which of the following is the likely result of persistent deflation? A. A decrease in interest rates B. A decrease in the level of inflation C. A decrease in bond prices D. An increase in the value of equities - Answer- A. A decrease in interest rates Which of the following statements is NOT TRUE about a fidelity bond? A. It protects customers in the event their broker-dealer goes bankrupt. B. It's insurance that protects a broker-dealer in case of fraud such as forgery or counterfeit currency. C. FINRA must be notified if the bond is cancelled or substantially modified. D. It covers securities that are held at the brokerage firm as well as those in transit. - Answer- A. It protects customers in the event their broker-dealer goes bankrupt. A fidelity bond does not protect customers in the event of broker-dealer bankruptcy; that's the role of SIPC. If a market maker has a current quote of 50.00 - 50.05 (15 x 20), this indicates that the firm is willing to: