FINA 365 UNL JINSOOK LATEST
LEE EXAM 1 QUESTIONS
AND ANSWERS 2026 -
2027
Which of the following is NOT considered a trading activity of
securities firms?
A) Program trading.
B) Risk arbitrage trading.
C) Liquidity trading.
D) Position trading.
E) Pure arbitrage. - ANSWERS-C) Liquidity trading.
The largest category of liabilities of securities firms as of 2018 was
A) bank loans payable.
B) securities sold under repurchase agreements.
C) payables to non-customers.
D) short positions in securities and commodities.
E) payables to customers. - ANSWERS-?
END OF
PAGE
1
, FINA 365 UNL JINSOOK LATEST
LEE EXAM 1 QUESTIONS
AND ANSWERS 2026 -
2027
Securities firms have equity ratios that are lower than those for
commercial banks because their balance sheets contain a larger portion
of
A) long term liabilities.
B) current liabilities.
C) illiquid assets.
D) fixed assets.
E) liquid assets. - ANSWERS-E) liquid assets.
Legislation designed to deter money laundering by implementing
practices to identify and verify those seeking to open an account were
instituted by the
A) Sarbanes-Oxley Act of 2002.
B) Bank Holding Company Act of 1956.
C) U.S.A. Patriot Act of 2003.
D) National Securities Markets Improvement Act of 1996.
E) Financial Services Modernization Act of 1999. - ANSWERS-C)
U.S.A. Patriot Act of 2003
END OF
PAGE
2
, FINA 365 UNL JINSOOK LATEST
LEE EXAM 1 QUESTIONS
AND ANSWERS 2026 -
2027
The Securities Investor Protection Corporation (SIPC) protects investors
against losses of up to ___________on securities firm failures.
A) $200,000
B) $100,000
C) $500,000
D) $25,000,000
E) $1,000,000 - ANSWERS-$500,000
Considering the securities firms and investment banking industries, The
National Securities Markets Improvement Act (NSMIA) of 1996
A) allowed individual states the right to require registration of firms
operating in the state.
B) appointed the Federal Reserve System as the primary regulator of the
industry.
C) effectively affirmed the SEC as the primary regulator of the industry.
D) diminished the role of the National Association of Securities Dealers
(NASD) in regulating the industry.
END OF
PAGE
3
, FINA 365 UNL JINSOOK LATEST
LEE EXAM 1 QUESTIONS
AND ANSWERS 2026 -
2027
E) required all firms in the industry to maintain minimum amounts of
capital. - ANSWERS-C) effectively affirmed the SEC as the primary
regulator of the industry.
Which of the following two investment banks were granted approval to
be chartered as commercial banks during the most recent financial
crisis?
A) Merrill Lynch and Bear Stearns.
B) Bear Stearns and Lehman Brothers.
C) Goldman Sachs and Morgan Stanley.
D) Merrill Lynch and Morgan Stanley.
E) Lehman Brothers and Goldman Sachs. - ANSWERS-C) Goldman
Sachs and Morgan Stanley.
An investment banker agrees to underwrite an issue of 10 million shares
of stock for TWResearch, Inc. on a firm commitment basis. The
investment banker pays $10.50 per share to TWResearch, Inc. for the 10
million shares of stock. It then sells those shares to the public for $11.20
per share. How much money does TWResearch receive?
END OF
PAGE
4
LEE EXAM 1 QUESTIONS
AND ANSWERS 2026 -
2027
Which of the following is NOT considered a trading activity of
securities firms?
A) Program trading.
B) Risk arbitrage trading.
C) Liquidity trading.
D) Position trading.
E) Pure arbitrage. - ANSWERS-C) Liquidity trading.
The largest category of liabilities of securities firms as of 2018 was
A) bank loans payable.
B) securities sold under repurchase agreements.
C) payables to non-customers.
D) short positions in securities and commodities.
E) payables to customers. - ANSWERS-?
END OF
PAGE
1
, FINA 365 UNL JINSOOK LATEST
LEE EXAM 1 QUESTIONS
AND ANSWERS 2026 -
2027
Securities firms have equity ratios that are lower than those for
commercial banks because their balance sheets contain a larger portion
of
A) long term liabilities.
B) current liabilities.
C) illiquid assets.
D) fixed assets.
E) liquid assets. - ANSWERS-E) liquid assets.
Legislation designed to deter money laundering by implementing
practices to identify and verify those seeking to open an account were
instituted by the
A) Sarbanes-Oxley Act of 2002.
B) Bank Holding Company Act of 1956.
C) U.S.A. Patriot Act of 2003.
D) National Securities Markets Improvement Act of 1996.
E) Financial Services Modernization Act of 1999. - ANSWERS-C)
U.S.A. Patriot Act of 2003
END OF
PAGE
2
, FINA 365 UNL JINSOOK LATEST
LEE EXAM 1 QUESTIONS
AND ANSWERS 2026 -
2027
The Securities Investor Protection Corporation (SIPC) protects investors
against losses of up to ___________on securities firm failures.
A) $200,000
B) $100,000
C) $500,000
D) $25,000,000
E) $1,000,000 - ANSWERS-$500,000
Considering the securities firms and investment banking industries, The
National Securities Markets Improvement Act (NSMIA) of 1996
A) allowed individual states the right to require registration of firms
operating in the state.
B) appointed the Federal Reserve System as the primary regulator of the
industry.
C) effectively affirmed the SEC as the primary regulator of the industry.
D) diminished the role of the National Association of Securities Dealers
(NASD) in regulating the industry.
END OF
PAGE
3
, FINA 365 UNL JINSOOK LATEST
LEE EXAM 1 QUESTIONS
AND ANSWERS 2026 -
2027
E) required all firms in the industry to maintain minimum amounts of
capital. - ANSWERS-C) effectively affirmed the SEC as the primary
regulator of the industry.
Which of the following two investment banks were granted approval to
be chartered as commercial banks during the most recent financial
crisis?
A) Merrill Lynch and Bear Stearns.
B) Bear Stearns and Lehman Brothers.
C) Goldman Sachs and Morgan Stanley.
D) Merrill Lynch and Morgan Stanley.
E) Lehman Brothers and Goldman Sachs. - ANSWERS-C) Goldman
Sachs and Morgan Stanley.
An investment banker agrees to underwrite an issue of 10 million shares
of stock for TWResearch, Inc. on a firm commitment basis. The
investment banker pays $10.50 per share to TWResearch, Inc. for the 10
million shares of stock. It then sells those shares to the public for $11.20
per share. How much money does TWResearch receive?
END OF
PAGE
4
