SIE PRACTICE TEST QUESTIONS WITH VERIFIED
SOLUTIONS
(2024-2025)
upon expiration, all in-the-money S&P 100 Index call options are settled by the delivery of which of
the following? - CORRECT ANSWER a) cash
b) S&P 100 Index stock
c) S&P exchange-traded funds
d) the same number of S&P 100 index put options
** answer is cash**
when is interest on treasury notes paid? - CORRECT ANSWER semiannually
** go back and review when interest on all different notes are paid**
which of the following actions is required when a firm receives cash in excess of $10,000 from one
customer in one business day - CORRECT ANSWER file a currency
transaction report (CTR)
what is the cost basis of an inherited mutual fund? - CORRECT ANSWER the net
asset value (NAV) of the shares when the owner dies
in a period of low inflation and economic recession, the federal reserve is expected to take which
of the following actions? - CORRECT ANSWER buy bonds in the open market
** go back and review**
which of the following is investment risk is the greatest risk in a variable life insurance policy -
CORRECT ANSWER market risk
* go back and study different types of risk*
which of the following considerations should a registered representative explain to a
customer when recommending a 529 college savings plan? - CORRECT ANSWER -
the potential deductibility of contributions from state taxes
SOLUTIONS
(2024-2025)
upon expiration, all in-the-money S&P 100 Index call options are settled by the delivery of which of
the following? - CORRECT ANSWER a) cash
b) S&P 100 Index stock
c) S&P exchange-traded funds
d) the same number of S&P 100 index put options
** answer is cash**
when is interest on treasury notes paid? - CORRECT ANSWER semiannually
** go back and review when interest on all different notes are paid**
which of the following actions is required when a firm receives cash in excess of $10,000 from one
customer in one business day - CORRECT ANSWER file a currency
transaction report (CTR)
what is the cost basis of an inherited mutual fund? - CORRECT ANSWER the net
asset value (NAV) of the shares when the owner dies
in a period of low inflation and economic recession, the federal reserve is expected to take which
of the following actions? - CORRECT ANSWER buy bonds in the open market
** go back and review**
which of the following is investment risk is the greatest risk in a variable life insurance policy -
CORRECT ANSWER market risk
* go back and study different types of risk*
which of the following considerations should a registered representative explain to a
customer when recommending a 529 college savings plan? - CORRECT ANSWER -
the potential deductibility of contributions from state taxes
