Page |1
SEI website practice Questions and
Correct Answers/ Latest Update / Already
Graded
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.
All rights reserved © 2025/ 2026 |
, Page |2
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)
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.
All rights reserved © 2025/ 2026 |
, Page |3
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
All rights reserved © 2025/ 2026 |
SEI website practice Questions and
Correct Answers/ Latest Update / Already
Graded
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.
All rights reserved © 2025/ 2026 |
, Page |2
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)
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.
All rights reserved © 2025/ 2026 |
, Page |3
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
All rights reserved © 2025/ 2026 |
