SIE Knopman

SIE Knopman Marks Practice Exam Question and Answer 2023. When a broker-dealer act on an agency basis to help a customer complete trades, the firm normally is compensated through Correct Answer: commissions Investment company financial statements are sent to shareholders Correct Answer: semiannually The credit quality of an exchange-traded note is Correct Answer: based on the credit worthiness of the issuer, typically the investment bank that structures the note When opening a margin account, the agreement that customers sign to pledge their securities as collateral for a loan from the broker-dealer is the Correct Answer: hypothecation agreement When comparing rights and warrants, which of the following statements is true? Correct Answer: The exercise price of a right is generally below the price of the stock when the right is issued; the exercise price of the warrant is generally above the price often stock when it is issued A registered representative located in California makes a 7:30pm cold call to a potential customer in NJ. This is Correct Answer: prohibited because cold calls can only be made between 8am and 9pm in the potential customer's time zone Investors whose bonds have been called as interest rates have fallen are now facing Correct Answer: reinvestment rate risk Helen opened a Roth IRA last year and wants to know what part of this year's contributions she can deduct. The answer is Correct Answer: she can't deduct any amount During the accumulation phase of a variable annuity, dividends, interest, and capital gains Correct Answer: may be reinvested without any current tax liability Dollar limits on a 529 plan contributions per beneficiary are set by Correct Answer: various states With regard to the price of closed-end fund shares held by investors which of the following statements is TRUE? Correct Answer: Shares may be sold at a discount or premium to their NAV A customer requests in writing that his account statements be held by the firm while he spends the winter in Florida. In response to the customer's request, the firm is permitted to honor the request Correct Answer: for a maximum of three months Which of the following is not an example of a restricted person under FINRA rules? Correct Answer: The uncle of a restricted person The order of liquidation in a limited partnership Correct Answer: secured bondholder, unsecured bondholder, limited partner, general partner All of the following sectors are considered cyclical EXCEPT Correct Answer: healthcare Which of the following interest rates is established by the Federal Reserve Board? Correct Answer: discount rate Pursuant to Regulation S-P, a broker-dealer must provide a privacy notice to a customer Correct Answer: prior to engaging in any securities business with that customer Which of the following events would subject an individual to a statutory disqualification Correct Answer: a conviction for a securities related misdemeanor 9 years ago Noreen and her husband Jeff, residents of New York City, have just had their first child Ali. They are interested in opening a 529 Plan for Ali in order to save for her future college education. As a registered representative, it would be most appropriate to tell them Correct Answer: to invest in a NY state 529 as there may be certain tax advantages at the state level Which of the following regulators enforce the MSRB rules for securities firms? Correct Answer: FINRA