FINRA SIE PRACTICE EXAM | 70+ QUESTIONS
AND VERIFIED ANSWERS | 100% CORRECT |
LATEST 2025/2026 GUIDE
When 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?
A) The spot exchange rate.
B) The counter currency's inflation rate.
C) The trade balance between the two countries.
D) The credit rating of the counter currency's government. - Correct
Answer - A) The spot exchange rate.
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:
A) A Broker.
B) An Underwriter.
C) A Market Maker.
D) A Transfer Agent. - Correct Answer - C) A Market Maker.
Which of the following actions is required when a firm receives cash in
excess of $10,000 from one customer in one business day?
A) File a Currency Transaction Report (CTR).
,B) File a Suspicious Activity Report (SAR) with the SEC.
C) Issue a cash transfer receipt to the customer.
D) Place a five-day hold on the customer's account for the funds
received. - Correct Answer - A) File a Currency Transaction Report
(CTR).
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. - Correct Answer - A) Profit
limited and loss limited.
Which of the following statements is true regarding a customer account
held as tenants in common?
A) The owners must equally share the assets.
B) The ownership of the decedent's assets is governed by their will or
state law.
C) Tenants in common is permitted for sue only for two individuals.
D) Tenants in common is permitted for sue only for married couples or
family members. - Correct Answer - B) The ownership of the
decedent's assets is governed by their will or state law.
, Which of the following stakeholders has first claim priority in a Chapter
11 proceeding?
A) Equity holders.
B) Secured debt holders.
C) Unsecured debt holders.
D) Preferred stockholders. - Correct Answer - B) Secured debt
holders.
When a broker-dealer charges a commission on a securities transaction,
it has acted as:
A) An Agent.
B) A Principal.
C) An Underwriter.
D) A Market Maker. - Correct Answer - A) An Agent.
The primary purpose of a syndicate desk in the context of an equity
offering is to:
A) Determine the list of selling shareholders.
B) Build an order book and allocate the stock.
C) Solicit interest from investors in the stock offering.
D) Chaperone company management during the road show. - Correct
Answer - B) Build an order book and allocate the stock.
AND VERIFIED ANSWERS | 100% CORRECT |
LATEST 2025/2026 GUIDE
When 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?
A) The spot exchange rate.
B) The counter currency's inflation rate.
C) The trade balance between the two countries.
D) The credit rating of the counter currency's government. - Correct
Answer - A) The spot exchange rate.
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:
A) A Broker.
B) An Underwriter.
C) A Market Maker.
D) A Transfer Agent. - Correct Answer - C) A Market Maker.
Which of the following actions is required when a firm receives cash in
excess of $10,000 from one customer in one business day?
A) File a Currency Transaction Report (CTR).
,B) File a Suspicious Activity Report (SAR) with the SEC.
C) Issue a cash transfer receipt to the customer.
D) Place a five-day hold on the customer's account for the funds
received. - Correct Answer - A) File a Currency Transaction Report
(CTR).
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. - Correct Answer - A) Profit
limited and loss limited.
Which of the following statements is true regarding a customer account
held as tenants in common?
A) The owners must equally share the assets.
B) The ownership of the decedent's assets is governed by their will or
state law.
C) Tenants in common is permitted for sue only for two individuals.
D) Tenants in common is permitted for sue only for married couples or
family members. - Correct Answer - B) The ownership of the
decedent's assets is governed by their will or state law.
, Which of the following stakeholders has first claim priority in a Chapter
11 proceeding?
A) Equity holders.
B) Secured debt holders.
C) Unsecured debt holders.
D) Preferred stockholders. - Correct Answer - B) Secured debt
holders.
When a broker-dealer charges a commission on a securities transaction,
it has acted as:
A) An Agent.
B) A Principal.
C) An Underwriter.
D) A Market Maker. - Correct Answer - A) An Agent.
The primary purpose of a syndicate desk in the context of an equity
offering is to:
A) Determine the list of selling shareholders.
B) Build an order book and allocate the stock.
C) Solicit interest from investors in the stock offering.
D) Chaperone company management during the road show. - Correct
Answer - B) Build an order book and allocate the stock.
