FINRA SIE EXAM PREP |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which of the following would be the interest rate charged for overnight, uncollateralized
loans negotiated between two money center banks?
A) Discount rate
B) Prime rate
C) Repo rate
D) Federal funds rate
CORRECT ANSWER
D) Federal funds rate
Explanation:
The federal funds rate is the rate commercial money center banks charge each other for
an overnight, unsecured loan. It is considered a barometer of the direction of short-term
interest rates such as commercial paper and Treasury bills, which often move up or down
roughly in parallel with the funds rate.
Question 2
A supply-side approach to fiscal policy will use all of these tools except
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,A) decreasing tax rates on business entities.
B) personal income tax rebates.
C) providing tax credits to small business.
D) decreasing government regulatory costs.
CORRECT ANSWER
B) personal income tax rebates.
Explanation:
Supply-side fiscal policy seeks to create a better environment for business to thrive. The
end goal is a growing economy that creates jobs. Sometimes called trickle-down
economics, the emphasis is on the business side much more than the consumer side.
Question 3
All of the following are self-regulatory organizations (SROs) in the securities industry that
are accountable for creating industry rules, as well as supervising securities practices
within an assigned jurisdiction, except
A) the MSRB.
B) FINRA.
C) the CBOE.
D) the SEC.
CORRECT ANSWER
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, D) the SEC.
Explanation:
All SROs, including FINRA, the MSRB, and all listed exchanges, are accountable to the
Securities and Exchange Commission (SEC). The SEC is the securities industry's primary
government body, not an SRO.
Question 4
The law that provides the legal framework for state registration of securities is
A) the Uniform Securities Act.
B) the Securities Act of 1933.
C) the Trust Indenture Act of 1939.
D) the Securities Exchange Act of 1934.
CORRECT ANSWER
A) the Uniform Securities Act.
Explanation:
The Uniform Securities Act provides a legal framework for the state registration of
securities, as well as the registration requirements applicable to broker-dealers,
investment advisers, investment adviser representatives, and registered representatives.
Question 5
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@THE STUDY VAULT
, How long must record of a customer complaint be retained?
A) Six years after resolution
B) Indefinitely
C) Four years after resolution
D) Four years after receipt
CORRECT ANSWER
C) Four years after resolution
Explanation:
Any record of written complaints must be kept for four years after resolution.
Question 6
The economy appears to be moving into a strong expansion. Which of the following
companies will likely benefit the most from this expansion?
A) Dino Oil and Gas, Co.
B) Old Bess Steel, Inc.
C) Daisy Dairy Company
D) Hinckley Gold and Silver Corp.
CORRECT ANSWER
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@THE STUDY VAULT
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which of the following would be the interest rate charged for overnight, uncollateralized
loans negotiated between two money center banks?
A) Discount rate
B) Prime rate
C) Repo rate
D) Federal funds rate
CORRECT ANSWER
D) Federal funds rate
Explanation:
The federal funds rate is the rate commercial money center banks charge each other for
an overnight, unsecured loan. It is considered a barometer of the direction of short-term
interest rates such as commercial paper and Treasury bills, which often move up or down
roughly in parallel with the funds rate.
Question 2
A supply-side approach to fiscal policy will use all of these tools except
1
@THE STUDY VAULT
,A) decreasing tax rates on business entities.
B) personal income tax rebates.
C) providing tax credits to small business.
D) decreasing government regulatory costs.
CORRECT ANSWER
B) personal income tax rebates.
Explanation:
Supply-side fiscal policy seeks to create a better environment for business to thrive. The
end goal is a growing economy that creates jobs. Sometimes called trickle-down
economics, the emphasis is on the business side much more than the consumer side.
Question 3
All of the following are self-regulatory organizations (SROs) in the securities industry that
are accountable for creating industry rules, as well as supervising securities practices
within an assigned jurisdiction, except
A) the MSRB.
B) FINRA.
C) the CBOE.
D) the SEC.
CORRECT ANSWER
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@THE STUDY VAULT
, D) the SEC.
Explanation:
All SROs, including FINRA, the MSRB, and all listed exchanges, are accountable to the
Securities and Exchange Commission (SEC). The SEC is the securities industry's primary
government body, not an SRO.
Question 4
The law that provides the legal framework for state registration of securities is
A) the Uniform Securities Act.
B) the Securities Act of 1933.
C) the Trust Indenture Act of 1939.
D) the Securities Exchange Act of 1934.
CORRECT ANSWER
A) the Uniform Securities Act.
Explanation:
The Uniform Securities Act provides a legal framework for the state registration of
securities, as well as the registration requirements applicable to broker-dealers,
investment advisers, investment adviser representatives, and registered representatives.
Question 5
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@THE STUDY VAULT
, How long must record of a customer complaint be retained?
A) Six years after resolution
B) Indefinitely
C) Four years after resolution
D) Four years after receipt
CORRECT ANSWER
C) Four years after resolution
Explanation:
Any record of written complaints must be kept for four years after resolution.
Question 6
The economy appears to be moving into a strong expansion. Which of the following
companies will likely benefit the most from this expansion?
A) Dino Oil and Gas, Co.
B) Old Bess Steel, Inc.
C) Daisy Dairy Company
D) Hinckley Gold and Silver Corp.
CORRECT ANSWER
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@THE STUDY VAULT
