FINRA SIE practice exam: Securities Industry Essentials (SIE) Exam Review: Questions & Answers: Guaranteed A+ Score Solution

A registered representative (RR) wants to participate in a private securities transaction. Which of the following actions must the RR take? (Ans- Send written notice to his supervisor outlining the activity and compensation structure A member of a stock exchange responsible for providing liquidity in a security by being willing to buy and sell at all times is known as: (Ans- a market maker In a period of low inflation and economic recession, the Federal Reserve is expected to take which of the following actions? (Ans- Buy bonds in the open market In the over-the-counter market, the term "spread" refers to the difference between the: (Ans- bid and asked prices Which of the following statements is true regarding the concept of an annuity contract? (Ans- The kind of annuity selected partly determines the payment amounts to the annuitantWhen selling a fixed amount of a base currency to purchase a counter currency, which of the following factors is primarily used to determine how much of the counter currency the customer will receive? (Ans- The spot exchange rate If a market maker posts a quote of 10.00 - 10.10 [25×10], which of the following actions is the market maker willing to take? (Ans- Buy 2,500 shares at $10.00 and sell 1,000 shares at $10.10 No-load mutual funds may have lower expense ratios than load mutual funds for which of the following reasons? (Ans- No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points Under FINRA rules, noncash compensation connected with the sale of variable contracts includes all of the following items except: (Ans- commissionsA customer has a cash balance in her account together with long positions in several securities. She has made no securities transactions in the account during the past 18 months. How often must the firm send her an account statement? (Ans- Quarterl