FINRA SIE PRACTICE TEST EXAM 48
QUESTIONS WITH COMPLETE SOLUTIONS
GRADED A+
QUESTIONS AND ANSWERS
The owner of which of the following products is MOST exposed to inflationary risk?.
ANSWER -Treasury Bonds have a higher inflationary risk than Blue chip industries,
T-Bills, or Utility stocks.
Which of the following considerations should a registered representative explain t a
customer when recommending a 529 college savings plan?. ANSWER -The potential
deductibility of contributions from state taxes.
To offer its shareholders a privilege to obtain its shares at a fixed price, which
products does a corporation issue?. ANSWER -Rights
Political campaign contribution limit?. ANSWER -$250
A registered representative (RR) who wants to place a mutual fund advertisement
must obtain written approval from from which party?. ANSWER -A registered
principal of the RR's firm.
If a market maker post a quote of 10.00-10.10 (25x10) which of the following actions
is the market maker willing to take?. ANSWER -Buy 2,500 shares at $10.00 and sell
1,000 shares at 10.10.
A transaction in which a writer covers a position by purchasing an option is called?.
ANSWER -A closing purchase.
, Under Federal Reserve Regulation T, a 90-day restriction is imposed when a
customer opens and closes which of the following positions?. ANSWER -The same
stock in a cash account without paying for the stock in full.
Letter of Intent is valid for?. ANSWER -13 months
Under rule 144A, an issuer of restricted stock is permitted to sell to which type of
investor?. ANSWER -Qualified institutional buyers (QB's)
A member of a stock exchange responsible for providing liquidity in a security buy
being willing to buy and sell at all times is known as?. ANSWER -A Marker Maker.
Which of the following security types provides investors with a stated maturity date,
a floating interest rate, and an option to put the society back to a financial
intermediary on a daily or weekly basis?. ANSWER -Variable rate demand note.
Which of the following statements is true regarding the concept of annuity
contracts?. ANSWER -The kind of annuity selected partly determines the payment
amounts to the annuitant.
Blue-sky laws are regulated by which of the following entities?. ANSWER -State
securities regulators.
Under the securities act of 1933, registration is required for these securities?.
ANSWER -American depository receipts (ADRs)
UTMA accounts are opened under the tax ID of the?. ANSWER -Minor.
QUESTIONS WITH COMPLETE SOLUTIONS
GRADED A+
QUESTIONS AND ANSWERS
The owner of which of the following products is MOST exposed to inflationary risk?.
ANSWER -Treasury Bonds have a higher inflationary risk than Blue chip industries,
T-Bills, or Utility stocks.
Which of the following considerations should a registered representative explain t a
customer when recommending a 529 college savings plan?. ANSWER -The potential
deductibility of contributions from state taxes.
To offer its shareholders a privilege to obtain its shares at a fixed price, which
products does a corporation issue?. ANSWER -Rights
Political campaign contribution limit?. ANSWER -$250
A registered representative (RR) who wants to place a mutual fund advertisement
must obtain written approval from from which party?. ANSWER -A registered
principal of the RR's firm.
If a market maker post a quote of 10.00-10.10 (25x10) which of the following actions
is the market maker willing to take?. ANSWER -Buy 2,500 shares at $10.00 and sell
1,000 shares at 10.10.
A transaction in which a writer covers a position by purchasing an option is called?.
ANSWER -A closing purchase.
, Under Federal Reserve Regulation T, a 90-day restriction is imposed when a
customer opens and closes which of the following positions?. ANSWER -The same
stock in a cash account without paying for the stock in full.
Letter of Intent is valid for?. ANSWER -13 months
Under rule 144A, an issuer of restricted stock is permitted to sell to which type of
investor?. ANSWER -Qualified institutional buyers (QB's)
A member of a stock exchange responsible for providing liquidity in a security buy
being willing to buy and sell at all times is known as?. ANSWER -A Marker Maker.
Which of the following security types provides investors with a stated maturity date,
a floating interest rate, and an option to put the society back to a financial
intermediary on a daily or weekly basis?. ANSWER -Variable rate demand note.
Which of the following statements is true regarding the concept of annuity
contracts?. ANSWER -The kind of annuity selected partly determines the payment
amounts to the annuitant.
Blue-sky laws are regulated by which of the following entities?. ANSWER -State
securities regulators.
Under the securities act of 1933, registration is required for these securities?.
ANSWER -American depository receipts (ADRs)
UTMA accounts are opened under the tax ID of the?. ANSWER -Minor.
