STC SIE Exam Final Practice Questions With Correct
Answers
Which |of |the |following |statements |is |TRUE |concerning |periodic |payment |variable |annuities?
A. |A |client's |number |of |annuity |units |never |changes
B. |A |client's |number |of |accumulation |units |never |changes
C. |Annuity |contracts |never |have |a |beneficiary
D. |The |monthly |payout |is |fixed |by |the |inflation |index |- |CORRECT |ANSWER✔✔-A. |A |client's |
number |of |annuity |units |never |changes
Which |of |the |following |securities |would |be |subject |to |federal |securities |registration |
requirements?
A. |Securities |offered |through |a |private |placement
B. |GNMA |securities
C. |Municipal |bonds
D. |Mutual |fund |shares |- |CORRECT |ANSWER✔✔-D. |Mutual |fund |shares
Mutual |fund |shares |would |be |subject |to |registration |requirements |at |the |state |and |federal |
level. |The |other |securities |are |exempt |from |federal |and |state |registration |requirements.
Which |of |the |following |is |the |likely |result |of |persistent |deflation?
A. |A |decrease |in |interest |rates
B. |A |decrease |in |the |level |of |inflation
,C. |A |decrease |in |bond |prices
D. |An |increase |in |the |value |of |equities |- |CORRECT |ANSWER✔✔-A. |A |decrease |in |interest |rates
Which |of |the |following |statements |is |NOT |TRUE |about |a |fidelity |bond?
A. |It |protects |customers |in |the |event |their |broker-dealer |goes |bankrupt.
B. |It's |insurance |that |protects |a |broker-dealer |in |case |of |fraud |such |as |forgery |or |counterfeit |
currency.
C. |FINRA |must |be |notified |if |the |bond |is |cancelled |or |substantially |modified.
D. |It |covers |securities |that |are |held |at |the |brokerage |firm |as |well |as |those |in |transit. |- |
CORRECT |ANSWER✔✔-A. |It |protects |customers |in |the |event |their |broker-dealer |goes |
bankrupt.
A |fidelity |bond |does |not |protect |customers |in |the |event |of |broker-dealer |bankruptcy; |that's |
the |role |of |SIPC.
If |a |market |maker |has |a |current |quote |of |50.00 |- |50.05 |(15 |x |20), |this |indicates |that |the |firm |is
|willing |to:
A. |Sell |200 |shares |at |$50.00 |and |buy |150 |shares |at |$50.05
B. |Buy |150 |shares |at |$50.00 |and |sell |200 |shares |at |$50.05
C. |Sell |1,500 |shares |at |$50.00 |and |buy |2,000 |shares |at |$50.05
D. |Buy |1,500 |shares |at |$50.00 |and |sell |2,000 |shares |at |$50.05 |- |CORRECT |ANSWER✔✔-D. |Buy |
1,500 |shares |at |$50.00 |and |sell |2,000 |shares |at |$50.05
An |investor |purchases |a |20-year |5.30% |bond |at |par |value |that |will |yield |5.75% |if |called |at |the |
first |call |date |in |five |years. |The |yield |to |maturity |on |the |bond |is:
,A. |5.30%
B. |More |than |5.30%
C. |Between |5.30% |and |5.75%
D. |5.75% |- |CORRECT |ANSWER✔✔-A. |5.30%
As |it |relates |to |private |securities |transactions |that |are |executed |by |an |associated |person |of |a |
broker-dealer, |compensation |does |NOT |include:
A. |Being |paid |a |commission |by |the |employing |broker-dealer
B. |Being |paid |a |commission |by |another |broker-dealer
C. |Receiving |tax |benefits |received |by |the |employee
D. |Being |given |warrants |by |another |firm |- |CORRECT |ANSWER✔✔-A. |Being |paid |a |commission |
by |the |employing |broker-dealer
A |convertible |bond |has |a |conversion |price |of |$50 |and |is |currently |selling |in |the |market |at |
$1,100. |The |conversion |ratio |is:
A. |20
B. |22
C. |55
D. |50 |- |CORRECT |ANSWER✔✔-A. |20
To |find |the |conversion |ratio |of |a |convertible |bond, |the |bond's |par |value |($1,000) |is |divided |by |
the |conversion |price |($50).
The |purchase |price |of |a |no-load |fund |is |determined |by |the:
, A. |Net |asset |value |plus |a |commission
B. |Net |asset |value |plus |a |sales |charge
C. |Supply |and |demand |for |the |fund
D. |Net |asset |value |- |CORRECT |ANSWER✔✔-D. |Net |asset |value
SPDR |is |considered |a |type |of:
A. |Index |option
B. |Exchange-traded |fund
C. |Mutual |fund
D. |World |currency |option |- |CORRECT |ANSWER✔✔-B. |Exchange-traded |fund
Standard |& |Poor's |Depositary |Receipt |(SPDR) |is |a |type |of |exchange-traded |fund |(ETF). |It |can |
be |used |to |refer |to |a |specific |exchange-traded |fund |that |tracks |the |S&P |500 |or |a |group |of |
ETFs.
Which |of |the |following |is |NOT |a |benefit |of |investing |in |a |real |estate |investment |trust |(REIT)?
A. |Stable |dividend |income
B. |Liquidity
C. |Passive |losses
D. |Diversification |- |CORRECT |ANSWER✔✔-C. |Passive |losses
MSRB |rules |do |NOT |apply |to:
A. |Registered |representatives
B. |Broker-dealers |that |prepare |research
Answers
Which |of |the |following |statements |is |TRUE |concerning |periodic |payment |variable |annuities?
A. |A |client's |number |of |annuity |units |never |changes
B. |A |client's |number |of |accumulation |units |never |changes
C. |Annuity |contracts |never |have |a |beneficiary
D. |The |monthly |payout |is |fixed |by |the |inflation |index |- |CORRECT |ANSWER✔✔-A. |A |client's |
number |of |annuity |units |never |changes
Which |of |the |following |securities |would |be |subject |to |federal |securities |registration |
requirements?
A. |Securities |offered |through |a |private |placement
B. |GNMA |securities
C. |Municipal |bonds
D. |Mutual |fund |shares |- |CORRECT |ANSWER✔✔-D. |Mutual |fund |shares
Mutual |fund |shares |would |be |subject |to |registration |requirements |at |the |state |and |federal |
level. |The |other |securities |are |exempt |from |federal |and |state |registration |requirements.
Which |of |the |following |is |the |likely |result |of |persistent |deflation?
A. |A |decrease |in |interest |rates
B. |A |decrease |in |the |level |of |inflation
,C. |A |decrease |in |bond |prices
D. |An |increase |in |the |value |of |equities |- |CORRECT |ANSWER✔✔-A. |A |decrease |in |interest |rates
Which |of |the |following |statements |is |NOT |TRUE |about |a |fidelity |bond?
A. |It |protects |customers |in |the |event |their |broker-dealer |goes |bankrupt.
B. |It's |insurance |that |protects |a |broker-dealer |in |case |of |fraud |such |as |forgery |or |counterfeit |
currency.
C. |FINRA |must |be |notified |if |the |bond |is |cancelled |or |substantially |modified.
D. |It |covers |securities |that |are |held |at |the |brokerage |firm |as |well |as |those |in |transit. |- |
CORRECT |ANSWER✔✔-A. |It |protects |customers |in |the |event |their |broker-dealer |goes |
bankrupt.
A |fidelity |bond |does |not |protect |customers |in |the |event |of |broker-dealer |bankruptcy; |that's |
the |role |of |SIPC.
If |a |market |maker |has |a |current |quote |of |50.00 |- |50.05 |(15 |x |20), |this |indicates |that |the |firm |is
|willing |to:
A. |Sell |200 |shares |at |$50.00 |and |buy |150 |shares |at |$50.05
B. |Buy |150 |shares |at |$50.00 |and |sell |200 |shares |at |$50.05
C. |Sell |1,500 |shares |at |$50.00 |and |buy |2,000 |shares |at |$50.05
D. |Buy |1,500 |shares |at |$50.00 |and |sell |2,000 |shares |at |$50.05 |- |CORRECT |ANSWER✔✔-D. |Buy |
1,500 |shares |at |$50.00 |and |sell |2,000 |shares |at |$50.05
An |investor |purchases |a |20-year |5.30% |bond |at |par |value |that |will |yield |5.75% |if |called |at |the |
first |call |date |in |five |years. |The |yield |to |maturity |on |the |bond |is:
,A. |5.30%
B. |More |than |5.30%
C. |Between |5.30% |and |5.75%
D. |5.75% |- |CORRECT |ANSWER✔✔-A. |5.30%
As |it |relates |to |private |securities |transactions |that |are |executed |by |an |associated |person |of |a |
broker-dealer, |compensation |does |NOT |include:
A. |Being |paid |a |commission |by |the |employing |broker-dealer
B. |Being |paid |a |commission |by |another |broker-dealer
C. |Receiving |tax |benefits |received |by |the |employee
D. |Being |given |warrants |by |another |firm |- |CORRECT |ANSWER✔✔-A. |Being |paid |a |commission |
by |the |employing |broker-dealer
A |convertible |bond |has |a |conversion |price |of |$50 |and |is |currently |selling |in |the |market |at |
$1,100. |The |conversion |ratio |is:
A. |20
B. |22
C. |55
D. |50 |- |CORRECT |ANSWER✔✔-A. |20
To |find |the |conversion |ratio |of |a |convertible |bond, |the |bond's |par |value |($1,000) |is |divided |by |
the |conversion |price |($50).
The |purchase |price |of |a |no-load |fund |is |determined |by |the:
, A. |Net |asset |value |plus |a |commission
B. |Net |asset |value |plus |a |sales |charge
C. |Supply |and |demand |for |the |fund
D. |Net |asset |value |- |CORRECT |ANSWER✔✔-D. |Net |asset |value
SPDR |is |considered |a |type |of:
A. |Index |option
B. |Exchange-traded |fund
C. |Mutual |fund
D. |World |currency |option |- |CORRECT |ANSWER✔✔-B. |Exchange-traded |fund
Standard |& |Poor's |Depositary |Receipt |(SPDR) |is |a |type |of |exchange-traded |fund |(ETF). |It |can |
be |used |to |refer |to |a |specific |exchange-traded |fund |that |tracks |the |S&P |500 |or |a |group |of |
ETFs.
Which |of |the |following |is |NOT |a |benefit |of |investing |in |a |real |estate |investment |trust |(REIT)?
A. |Stable |dividend |income
B. |Liquidity
C. |Passive |losses
D. |Diversification |- |CORRECT |ANSWER✔✔-C. |Passive |losses
MSRB |rules |do |NOT |apply |to:
A. |Registered |representatives
B. |Broker-dealers |that |prepare |research
