SIE ADB Practice Exam Questions and
Answers
The CBOE VIX measures: - Answer-The S&P 500 Volitility
Which of the following is required to be maintained for 3 years?
- Customer account records,
- Instant Messages,
- Currency Transaction Reports
- Customer Complaints - Answer-Instant Messages — because correspondence and retail
communication are held for the shortest amount of time.
FINRA Record Keeping Requirements: - Answer-3 Years: correspondence, communication, records of
gifts
4 Years: Complaints
5 Years: CTR and SAR Reports
6 Years: Account Records, Municipal Complaints, POA
,Life +3: Articles of Incorporation, Partnership Agreement, Stock Certificate Books
Which of the following statements is true regarding the summary prospectus?
- It is also called a red herring
- it includes an application to open a new account and is offer to sell,
- is a simple ad describing the nature of the offering,
- contains supplementary information regarding the many items on the prospectus which must be
furnished upon request - Answer-It Includes an application to open a new account and is an offer to sell
If income is passed on to the partners of a DPP what can the partners do with this for tax purposes?
- use it to reinvest in the DPP to defer taxation
- invest it in a qualified retirement plan to take a tax deduction
- it can be used to offset passive losses
- use it to offset capital losses - Answer-It can be used to offset passive losses
Which of the following statements best describes the same investment company that offers various
mutual funds with different investment objectives?
- Investment Advisor
- Family of Funds
- Annuity
- Broker-Dealer - Answer-Family of Funds
Which index is the broadest measure of the market?
- Vault Line
- Wilshire Index
- S&P 500
, - Dow Jones Industrial - Answer-Wilshire Index
What do each of the major indexes measure? - Answer-Dow - best average of the market, 30 positions
S&P - 500 top companies
Wilshire - broadest measure
Value Line Index - 1,700 exchanged traded stocks
Which of the following statements concerning FINRA review of communications policy are correct?
- a log of all individual correspondence related to investment companies must be submitted to FINRA on
a quarterly basis
- all advertisements pertaining to guaranteed contracts must be submitted to FINRA within 10 days of
first use
- an investment company advertisement must be submitted to FINRA 10 days prior to first use
- all retail communication regarding investment company products must be submitted to FINRA within
10 days of first use - Answer-- all retail communication regarding investment company products must
be submitted to FINRA within 10 days of first use
ABC is quoted at 15 - 16 what's the bid?
- 15
- 15 1/2
-1
- 16 - Answer-15 because when referencing a stock and not government bonds, the two number format
is listing the bid price and ask price
Answers
The CBOE VIX measures: - Answer-The S&P 500 Volitility
Which of the following is required to be maintained for 3 years?
- Customer account records,
- Instant Messages,
- Currency Transaction Reports
- Customer Complaints - Answer-Instant Messages — because correspondence and retail
communication are held for the shortest amount of time.
FINRA Record Keeping Requirements: - Answer-3 Years: correspondence, communication, records of
gifts
4 Years: Complaints
5 Years: CTR and SAR Reports
6 Years: Account Records, Municipal Complaints, POA
,Life +3: Articles of Incorporation, Partnership Agreement, Stock Certificate Books
Which of the following statements is true regarding the summary prospectus?
- It is also called a red herring
- it includes an application to open a new account and is offer to sell,
- is a simple ad describing the nature of the offering,
- contains supplementary information regarding the many items on the prospectus which must be
furnished upon request - Answer-It Includes an application to open a new account and is an offer to sell
If income is passed on to the partners of a DPP what can the partners do with this for tax purposes?
- use it to reinvest in the DPP to defer taxation
- invest it in a qualified retirement plan to take a tax deduction
- it can be used to offset passive losses
- use it to offset capital losses - Answer-It can be used to offset passive losses
Which of the following statements best describes the same investment company that offers various
mutual funds with different investment objectives?
- Investment Advisor
- Family of Funds
- Annuity
- Broker-Dealer - Answer-Family of Funds
Which index is the broadest measure of the market?
- Vault Line
- Wilshire Index
- S&P 500
, - Dow Jones Industrial - Answer-Wilshire Index
What do each of the major indexes measure? - Answer-Dow - best average of the market, 30 positions
S&P - 500 top companies
Wilshire - broadest measure
Value Line Index - 1,700 exchanged traded stocks
Which of the following statements concerning FINRA review of communications policy are correct?
- a log of all individual correspondence related to investment companies must be submitted to FINRA on
a quarterly basis
- all advertisements pertaining to guaranteed contracts must be submitted to FINRA within 10 days of
first use
- an investment company advertisement must be submitted to FINRA 10 days prior to first use
- all retail communication regarding investment company products must be submitted to FINRA within
10 days of first use - Answer-- all retail communication regarding investment company products must
be submitted to FINRA within 10 days of first use
ABC is quoted at 15 - 16 what's the bid?
- 15
- 15 1/2
-1
- 16 - Answer-15 because when referencing a stock and not government bonds, the two number format
is listing the bid price and ask price
