SIE STC USA Greenlight Exam 1 Practice Questions and Answers 100% Pass

SIE STC USA Greenlight Exam 1 Practice Questions and Answers 100% Pass Which of the following statement is NOT TRUE regarding the Uniform Gifts to Minors Act? A. only one custodian is allowed for each account B. The minor is responsible for all taxes due on dividends and interest received from securities held in the account C. only an adult may be a custodian D. securities must be held in the name of the brokerage form - ANSWER-D All of the choices regarding the Uniform Gift to Minors Act are true EXCEPT securities must be held in the name of the brokerage firm (Street name). All securities are registered in the name of the custodian for the minor. A limited partner would be in jeopardy of losing her limited liability if the partner: A. Received a portion of the project's income and deductions B. assisted in the decision of which properties to acquire C. insisted on examining the partnership's financial records Copyright ©SOPHIABENNETT 2025 ACADEMIC YEARALL RIGHTS RESERVED. Page 2/49 D. made a loan to the partnership - ANSWER-B Limited partners have the right to receive their portion of income and losses, examine books and records, and make loans to the partnership. If they get involved in the management of the program, such as deciding which properties to acquire, they could be considered general partners and lose their limited liability. Which of the following is NOT a type of unsystematic risk? A. Political Risk B. Business risk C. Credit risk D. Market risk - ANSWER-D Market risk is a form of systematic risk and cannot be avoided by securities investor. For example, if the overall stock market is declining, it will negatively affect all of the stocks in the market. Conversely, unsystematic risk is able to be reduced through appropriate diversification. A registered person has received a gift that's valued at $150 from the FINRA member firm through which her firm clears trades. This gift is considered: A. Excessive B. Acceptable, but only it it's documented by the gifting firm C. Acceptable, but only if it's documented by the receiving firm Copyright ©SOPHIABENNETT 2025 ACADEMIC YEARALL RIGHTS RESERVED. Page 3/49 D. Acceptable - ANSWER-A If an associated person of a member firm provides a gift that exceeds $100 from another FINRA member firm, it's unacceptable and a violation of FINRA rules. Three-month and six-month Treasury bills are auctioned by the Federal Reserve Board: A. Daily B. Weekly C. Monthly D. Annually - ANSWER-B Three-month and six-month Treasury Bills are sold at public auctions each Monday. An uncle would like to invest for his nephew's college education. Which of the following factors is a benefit of a 529 plan? A. Uniformity of state taxation B. Pretax contributions C. Change of beneficiaries allowed D. No limits on contributions - ANSWER-C The owner of a 529 plan may change beneficiaries. Contributions are made on an after- tax basis, and are based on state rules, which vary from state to state. Contributions are limited, and vary by state. Copyright ©SOPHIABENNETT 2025 ACADEMIC YEARALL RIGHTS RESERVED. Page 4/49 A brokerage firm will generally distribute which of the folloing to employees of the firm? A. The restricted list B. The watch list C. A list of the mutual funds it recommends to customers D. A list of the stocks in which it makes a market - ANSWER-A Restricted and watch lists include securities that employees are either restricted or prohibited from trading, or issues that are subject to closer scrutiny by the brokerage firm. The restriction or limitations associated with the lists apply to the employee transactions and to solicited transactions with customers. The restricted list must be distributed to employees; however, the content of the watch list is generally known only to selected members of the legal and compliance departments. Which of the following is the rate that commercial banks charge on loans to broker- dealers for margin purposes? A. Prime rate B. discount rate C. Federal funds rate D. Call rate - ANSWER-D Copyright ©SOPHIABENNETT 2025 ACADEMIC YEARALL RIGHTS RESERVED. Page 5/49 The call rate is what commercial banks charge on loans to broker-dealers for margin purposes. The prime rate is the rate that commercial banks charge to their best corporate clients. The discount rate is what the Federal Reserve charges when lending to member banks. The federal funds rate is the rate charged on overnight loans between member banks. An investor has a portfolio of bonds that yields 6%. Interest rates have been falling and most of the bonds in the portfolio are due to mature which will force the investor to seek new bonds at lower yields. This investor is exper