FINRA SIE Practice Exam Correct
Questions & Answers(GRADED A)
In a period of low inflation and economic recession, the Federal Reserve is expected to
take which of the following actions?
A) Decrease Taxes
B) Require banks to increase reserve
C) Buy bonds in the open market - ANSWER Buy bonds in the open market
Under FINRA rules which of the following activities by a registered representative
requires written notification to her firm?
A) Gambling resulting in winnings in excess of $10,000
B) Driving part time for a transportation network company on weekends
C) Selling non proprietary investment company securities through her firm - ANSWER
Driving part time for a transportation network company on weekends
FinCEN accomplishes its mission to safeguard the financial system from the abuses of
financial crime, including terrorist financing and money laundering, by enforcing.
A) SEC regulations
B) The Bank Secrecy Act
C) The Securities Act of 1933
D) The investment Company Act of 1940 - ANSWER The Bank Secrecy Act
Call protection is most valuable to a bond owner when bond prices are generally.
A) Rising
B) Falling
C) Stable
D) Fluctuating - ANSWER Rising
The owner of which of the following products is most exposed to inflationary risk?
A) Utility Stocks
B) Treasury Bills
C) Treasury bonds
D) Blue chip industrials - ANSWER Treasury Bonds
Which of the following outcomes are possible for the writer of a covered call option?
A) Profit limited and loss limited
B) Profit limited and loss unlimited
, C) Profit unlimited and loss limited
D) Profit unlimited and loss unlimited - ANSWER Profit limited and loss limited
Under SEC regulation S-P(Consumer Privacy) which of the following information must a
firm include in its customer privacy and opt-out notices?
A) The address of the firms website
B) The fee to opt out from the privacy program
C) The deadline by which to opt out from the privacy program
D) The policies to protect the security of nonpublic information - ANSWER The policies
to protect the security of nonpublic information
The last transaction in XYZ 5.50's 2030 was at 102. This bond is selling at:
A) Par
B) A premium
C) A discount
D) asset value - ANSWER A premium
Broker-Dealer ABC seeks to underwrite a municipal securities offering by a local town in
which the mayor is currently seeking re-election. A municipal finance professional who
resides in the town and works for ABC contributed $200 to the mayor's re-election
campaign 13 months ago. If the employee wants to support the campaign further
without impacting the municipal securities business of the firm, he is permitted to make
an additional contribution of up to what amount.
A) $50
B) $100
C) $150
D) $250 - ANSWER $50
At issue, which of the following debt securities mature in one year or less?
A) FNMA bonds
B) GNMA bonds
C) Treasury notes
D) Money market instruments - ANSWER Money market instruments
Under normal circumstances, a customer letter of intent on a mutual fund purchase is
valid for what maximum period of time?
A) 3 months
B) 6 months
Questions & Answers(GRADED A)
In a period of low inflation and economic recession, the Federal Reserve is expected to
take which of the following actions?
A) Decrease Taxes
B) Require banks to increase reserve
C) Buy bonds in the open market - ANSWER Buy bonds in the open market
Under FINRA rules which of the following activities by a registered representative
requires written notification to her firm?
A) Gambling resulting in winnings in excess of $10,000
B) Driving part time for a transportation network company on weekends
C) Selling non proprietary investment company securities through her firm - ANSWER
Driving part time for a transportation network company on weekends
FinCEN accomplishes its mission to safeguard the financial system from the abuses of
financial crime, including terrorist financing and money laundering, by enforcing.
A) SEC regulations
B) The Bank Secrecy Act
C) The Securities Act of 1933
D) The investment Company Act of 1940 - ANSWER The Bank Secrecy Act
Call protection is most valuable to a bond owner when bond prices are generally.
A) Rising
B) Falling
C) Stable
D) Fluctuating - ANSWER Rising
The owner of which of the following products is most exposed to inflationary risk?
A) Utility Stocks
B) Treasury Bills
C) Treasury bonds
D) Blue chip industrials - ANSWER Treasury Bonds
Which of the following outcomes are possible for the writer of a covered call option?
A) Profit limited and loss limited
B) Profit limited and loss unlimited
, C) Profit unlimited and loss limited
D) Profit unlimited and loss unlimited - ANSWER Profit limited and loss limited
Under SEC regulation S-P(Consumer Privacy) which of the following information must a
firm include in its customer privacy and opt-out notices?
A) The address of the firms website
B) The fee to opt out from the privacy program
C) The deadline by which to opt out from the privacy program
D) The policies to protect the security of nonpublic information - ANSWER The policies
to protect the security of nonpublic information
The last transaction in XYZ 5.50's 2030 was at 102. This bond is selling at:
A) Par
B) A premium
C) A discount
D) asset value - ANSWER A premium
Broker-Dealer ABC seeks to underwrite a municipal securities offering by a local town in
which the mayor is currently seeking re-election. A municipal finance professional who
resides in the town and works for ABC contributed $200 to the mayor's re-election
campaign 13 months ago. If the employee wants to support the campaign further
without impacting the municipal securities business of the firm, he is permitted to make
an additional contribution of up to what amount.
A) $50
B) $100
C) $150
D) $250 - ANSWER $50
At issue, which of the following debt securities mature in one year or less?
A) FNMA bonds
B) GNMA bonds
C) Treasury notes
D) Money market instruments - ANSWER Money market instruments
Under normal circumstances, a customer letter of intent on a mutual fund purchase is
valid for what maximum period of time?
A) 3 months
B) 6 months
