FINRA SIE PRACTICE EXAM REVIEW
QUESTIONS & ACTUAL CORRECT
ANSWERS 100%
Direct Participation Programs (DPPs) provide: - Correct Answer ✔✔ exposure to non-
correlated assets with steady returns
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer
opens and closes which of the following positions? - Correct Answer ✔✔ The same
stock in a cash account without paying for the stock in full
Under the securities act of 1933, registration is required for which of the following
securities - Correct Answer ✔✔ American Depository Receipts (ADRs)
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must her firm send her and account statement? - Correct Answer
✔✔ Quarterly
Under SEC Regulation S-P (Consumer Privacy), which of the following information must
a firm include in its customer privacy and opt-out notices? - Correct Answer ✔✔ The
policies that protect the security of non-public information
What action is required of a broker dealer's anti money laundering (AML) program? -
Correct Answer ✔✔ Designating an AML compliance officer
Which investment risk is the greatest risk in a variable life insurance policy - Correct
Answer ✔✔ Market risk
What consideration should a registered representative explain to a customer when
recommending a 529 college savings plan - Correct Answer ✔✔ potential deductibility
of contributions from state taxes
The redemption value of an open-end investment company's shares is based on the: -
Correct Answer ✔✔ NAV computed after the order is received
Describe treasury stocks - Correct Answer ✔✔ They are issued stocks that have been
subsequently reacquired by the corporation
Call protection is most valuable to a bond owner when bond prices are generally: -
Correct Answer ✔✔ rising
QUESTIONS & ACTUAL CORRECT
ANSWERS 100%
Direct Participation Programs (DPPs) provide: - Correct Answer ✔✔ exposure to non-
correlated assets with steady returns
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer
opens and closes which of the following positions? - Correct Answer ✔✔ The same
stock in a cash account without paying for the stock in full
Under the securities act of 1933, registration is required for which of the following
securities - Correct Answer ✔✔ American Depository Receipts (ADRs)
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must her firm send her and account statement? - Correct Answer
✔✔ Quarterly
Under SEC Regulation S-P (Consumer Privacy), which of the following information must
a firm include in its customer privacy and opt-out notices? - Correct Answer ✔✔ The
policies that protect the security of non-public information
What action is required of a broker dealer's anti money laundering (AML) program? -
Correct Answer ✔✔ Designating an AML compliance officer
Which investment risk is the greatest risk in a variable life insurance policy - Correct
Answer ✔✔ Market risk
What consideration should a registered representative explain to a customer when
recommending a 529 college savings plan - Correct Answer ✔✔ potential deductibility
of contributions from state taxes
The redemption value of an open-end investment company's shares is based on the: -
Correct Answer ✔✔ NAV computed after the order is received
Describe treasury stocks - Correct Answer ✔✔ They are issued stocks that have been
subsequently reacquired by the corporation
Call protection is most valuable to a bond owner when bond prices are generally: -
Correct Answer ✔✔ rising
