FINRA SIE Practice Test: Questions & Answers: Latest Updated Solution

Which of the following Form U4 reportable events results in a statutory disqualification? (Ans- A felony CONVICTION for a DUI charge Call protection is MOST valuable to a bond owner when the PRICES are generally (Ans- Rising (because interest RATES will be decreasing) 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? (Ans- Variable rate demand note What is the cost basis of an inherited mutual fund? (Ans- The NAV of the shares when the owner dies Blue-sky laws are regulated by which of the following entities? (Ans- Stated securities regulatorsUnder FINRA rules, which of the following activities by a registered representative requires written notification to her firm? (Ans- Driving part time for a transportation network company on weekends (anything that receives compensation) Which of the following actions violates FINRA rules regarding selling away? (Ans- Engaging in private securities transactions without written prior consent of the employing BD The computation of dollar prices and accrued interest on municipal bonds is normally on what calendar basis? (Ans- 30/360 A transaction in which a WRITER covers a position by PURCHASING an option is called: (Ans- a closing purchase Which of the following responses describes an advantage of index funds? (Ans- Lower management fees due to passive management of the fundFinCEN accomplishes its mission to safeguard the financial system from the abuses of financial crime, including terrorist financing and money laundering, by enforcing: (Ans- The Bank Secrecy Act A firm is a participant in a public offering. To sell a substantial amount of the securities to its customers, the firm agrees to repurchase the shares at no less than the original sales price. Such agreements are: (Ans- Prohibited as fraudulent and manipulative The last transaction in XYZ 5.50s 2030 was at 102, this bond is selling at (Ans- a premium A savings account at a BANK is guaranteed by which of the following entities? (Ans- FDIC 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- File a Currency Transaction Report (CTR)