784 SIE FINRA Exam Questions and Answers

The Federal regulatory body that governs the securities industry is: The SEC A fully disclosed BD: is an inducing firm clearing its transactions through a carrying firm An intermediary between the buy and sell sides of a transaction is known as a clearing agent For the Depository Trust and Clearing Corporation (DTCC), all of the following are true EXCEPT: a. it is a member of the Federal Reserve System b. It acts as a retail bank servicing savings and checking accounts c. it serves for the purpose of providing custody of securities d. it is a worldwide clearing agent b. it acts as a retail bank servicing savings and checking accounts Your BD acts as a prime broker for an institutional account. In this arrangement, your BD is likely to be providing which of the following services? clearing and transaction settlement services for executing brokers An individual or institution willing to hold securities positions in its own proprietary account for the purpose of providing liquidity to the marketplace is a market maker An entity such as a corporation wishing to offer securities for sale to the public for the purpose of raising capital is an issuer A nonprofit organization requiring members to pay assessments into a general insurance fund used to meet customer claims in the event of a BD bankruptcy is the Securities Investors Protection Corporation (SIPC) The FDIC provides insurance guaranteeing the safety of a depositor's accounts in FDIC member banks for each deposit up to: $250,000 Determining monetary policy and taking actions to implement those policies is the responsibility of the Federal Reserve Board (FRB) The Magnolia Steel Corporation needs to build a refinery plant. It is estimated to cost $750 million to complete. What market can be used to raise the money needed to build the new plant? Secondary Market