1|Page
SIE Practice Exam 2026 |
Comprehensive Q&A For Certification
Success
A trade surplus results from - correct-answer - a country exporting more than it
imports
William, age 56, recently retired from Epsilon Inc., and would like to take a
distribution from a retirement plan to pay for medical expenses. What plan would
allow William to take a penalty free withdrawal? - correct-answer - 401(k) from
Epsilon Inc
Match the state of the business cycle with the description that follows for
questions 19-22
A. Trough
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B. Expansion
C. Contraction
D. Peak
_______ Recession - correct-answer - contraction
_________ Utilization at its lowest level - correct-answer - Trough
_______ Recovery - correct-answer - Expansion
________ GDP at its highest point - correct-answer - Peak
All are characteristics of a REIT EXCEPT - correct-answer - it is a publicly traded
open-end investment company
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(it is closed-end)
What can an investor sign which allows him or her to receive breakpoint
discounts based upon a commitment to buy a specified number of mutual fund
shares over a period of time, usually 13 months - correct-answer - Letter of intent
What is a type of exchange rate system in which a country ties its currency to a
basket of other currencies or to another measure of value, such as gold? - correct-
answer - Fixed exchange rate system
What will result if money distributed from a 529 plan is not used to pay for
qualifying education expenses? - correct-answer - The gain is taxed as ordinary
income, and a 10% penalty is applied
SIE Practice Exam 2026 |
Comprehensive Q&A For Certification
Success
A trade surplus results from - correct-answer - a country exporting more than it
imports
William, age 56, recently retired from Epsilon Inc., and would like to take a
distribution from a retirement plan to pay for medical expenses. What plan would
allow William to take a penalty free withdrawal? - correct-answer - 401(k) from
Epsilon Inc
Match the state of the business cycle with the description that follows for
questions 19-22
A. Trough
,2|Page
B. Expansion
C. Contraction
D. Peak
_______ Recession - correct-answer - contraction
_________ Utilization at its lowest level - correct-answer - Trough
_______ Recovery - correct-answer - Expansion
________ GDP at its highest point - correct-answer - Peak
All are characteristics of a REIT EXCEPT - correct-answer - it is a publicly traded
open-end investment company
, 3|Page
(it is closed-end)
What can an investor sign which allows him or her to receive breakpoint
discounts based upon a commitment to buy a specified number of mutual fund
shares over a period of time, usually 13 months - correct-answer - Letter of intent
What is a type of exchange rate system in which a country ties its currency to a
basket of other currencies or to another measure of value, such as gold? - correct-
answer - Fixed exchange rate system
What will result if money distributed from a 529 plan is not used to pay for
qualifying education expenses? - correct-answer - The gain is taxed as ordinary
income, and a 10% penalty is applied
