SEI WEBSITE PRACTICE EXAM
QUESTIONS AND ANSWERS 100% PASS
Which of the following comparisons best describes the essential difference between primary
distribution and a secondary distribution? - ANS A primary distribution involves a sale of
newly issued shares by the issuer while secondary distribution involves the sale of already
issued and outstanding shares.
Which of the following actions is required when a firm receives cash in excess of $10,000 from
one customer in one business day? - ANS A) File a Currency Transaction Report (CTR)
The call provision of a bond stipulates which of the following factors? B) Call date and call price -
ANS B) Call date and call price
In the over-the-counter market, the term "spread" refers the difference between the: A) bid and
asked prices. B) offered and asked prices. C) indicated and firm prices. D) opening and closing
prices. - ANS A) bid and asked prices.
A member of a stock exchange responsible for providing liquidity in a security by being willing to
buy and sell at times is known as: A) a broker. B) an underwriter. C) a market maker D) a transfer
agent. - ANS C) a market maker
Under Rule 144A, an issuer of restricted stock is permitted sell to which of the following
investors? A) Financial institutions B) Accredited investors C) Qualified institutional buyers
(QIBS) D) Nonaccredited investors who have previously purchased restricted stock - ANS C)
Qualified institutional buyers (QIBS)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Stability in the value of a debt portfolio is greatest when: A) interest rates are rising. B) interest
rates are falling. C) maturities of the debt securities are long. D) maturities of the debt securities
are short - ANS D) maturities of the debt securities are short
Which of the following statements is true regarding a customer account held as tenants in
common? A) The owners must equally share the assets. B) The ownership of the decedent's
assets governed by their C) Tenants in common is permitted for use only for two individuals. -
ANS B) The ownership of the decedent's assets is governed by their will or state law.
Which of the following investment risks is the greatest risk in a variable life insurance policy? A)
Credit risk B) Market risk C) Inflation risk D) Interest rate risk - ANS B) Market risk
Which of the following security types provides investors with a stated maturity date, a floating
interest rate, and an option to put the security back to a financial intermediary on a daily or
weekly basis? A) Equity put option B) Perpetual preferred stock C) Variable rate demand note D)
Tax-deferred variable annuity - ANS C) Variable rate demand note
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis? A) 30/360 B) 30/365 C) Actual/360 D) Actual/365 - ANS A) 30/360
At issue, which of the following debt securities mature in one year or less? A) FNMA bonds B)
GNMA bonds C) Treasury notes D) Money market instruments - ANS D) Money market
instruments
Which of the following considerations should a registered representative explain to a customer
when recommending a 529 college savings plan? A) The potential deductibility of contributions
from state taxes B) The potential deductibility of contributions from federal taxes C) The income
eligibility restrictions to contribute to the account D) The rights of the account beneficiary to the
assets at the age of majority - ANS A) The potential deductibility of contributions from state
taxes
Which of the following Form U4 reportable events results in statutory disqualification? A) A
personal bankruptcy filing B) A written customer complaint alleging misappropriation of assets
C) A felony theft charge D) A felony conviction for a driving under the influence (DUI) charge -
ANS D) A felony conviction for a driving under the influence (DUI) charge
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS 100% PASS
Which of the following comparisons best describes the essential difference between primary
distribution and a secondary distribution? - ANS A primary distribution involves a sale of
newly issued shares by the issuer while secondary distribution involves the sale of already
issued and outstanding shares.
Which of the following actions is required when a firm receives cash in excess of $10,000 from
one customer in one business day? - ANS A) File a Currency Transaction Report (CTR)
The call provision of a bond stipulates which of the following factors? B) Call date and call price -
ANS B) Call date and call price
In the over-the-counter market, the term "spread" refers the difference between the: A) bid and
asked prices. B) offered and asked prices. C) indicated and firm prices. D) opening and closing
prices. - ANS A) bid and asked prices.
A member of a stock exchange responsible for providing liquidity in a security by being willing to
buy and sell at times is known as: A) a broker. B) an underwriter. C) a market maker D) a transfer
agent. - ANS C) a market maker
Under Rule 144A, an issuer of restricted stock is permitted sell to which of the following
investors? A) Financial institutions B) Accredited investors C) Qualified institutional buyers
(QIBS) D) Nonaccredited investors who have previously purchased restricted stock - ANS C)
Qualified institutional buyers (QIBS)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Stability in the value of a debt portfolio is greatest when: A) interest rates are rising. B) interest
rates are falling. C) maturities of the debt securities are long. D) maturities of the debt securities
are short - ANS D) maturities of the debt securities are short
Which of the following statements is true regarding a customer account held as tenants in
common? A) The owners must equally share the assets. B) The ownership of the decedent's
assets governed by their C) Tenants in common is permitted for use only for two individuals. -
ANS B) The ownership of the decedent's assets is governed by their will or state law.
Which of the following investment risks is the greatest risk in a variable life insurance policy? A)
Credit risk B) Market risk C) Inflation risk D) Interest rate risk - ANS B) Market risk
Which of the following security types provides investors with a stated maturity date, a floating
interest rate, and an option to put the security back to a financial intermediary on a daily or
weekly basis? A) Equity put option B) Perpetual preferred stock C) Variable rate demand note D)
Tax-deferred variable annuity - ANS C) Variable rate demand note
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis? A) 30/360 B) 30/365 C) Actual/360 D) Actual/365 - ANS A) 30/360
At issue, which of the following debt securities mature in one year or less? A) FNMA bonds B)
GNMA bonds C) Treasury notes D) Money market instruments - ANS D) Money market
instruments
Which of the following considerations should a registered representative explain to a customer
when recommending a 529 college savings plan? A) The potential deductibility of contributions
from state taxes B) The potential deductibility of contributions from federal taxes C) The income
eligibility restrictions to contribute to the account D) The rights of the account beneficiary to the
assets at the age of majority - ANS A) The potential deductibility of contributions from state
taxes
Which of the following Form U4 reportable events results in statutory disqualification? A) A
personal bankruptcy filing B) A written customer complaint alleging misappropriation of assets
C) A felony theft charge D) A felony conviction for a driving under the influence (DUI) charge -
ANS D) A felony conviction for a driving under the influence (DUI) charge
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
