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SIE Review
SIE Review
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1
How long must a member retain records of Form U5 filings, according to the recordkeeping requirements>
3 years
1 year
2 years
4 years
2
The term ___, as used in the Firms' Conclusions of Violations Rule, includes formal findings and adverse final actions
Found
Established
Discovered
Formed
3
Which type of quote has the foreign currency on top and domestic currency on the bottom?
Nominal
Direct
Real
Indirect
4
How many members are on the FOMC (Federal Open Market Committee)?
7
5
10
12
5
Which of these is a trust that cannot be altered once it is officially established and takes ownership of the assets?
Funded trust
Unfunded trust
Irrevocable trust
Revocable trust
6
If a covered person is subject to any disciplinary action, the ____ will be treated as the person's new base date.
Date of the completion of the disciplinary action
Original base date
Date of the disciplinary action
None of the above
7
In what phase of the business cycle show market-wide declines?
Peak
Expansion
Contraction
Trough
8
What type of bond is backed by "user-fees" and "special assessments"?
Yankee Bonds
Industrial Revenue Bonds
General Obligation Bonds
Revenue Bonds
9
All of the following securities do NOT include voting and preemptive rights, except...
Debentures
Preferred stock
Common stock
Secured bonds
10
What is the overall mission of the SEC?
To protect investors and the financial markets
To ensure investors make a good return on their investments
To regulate trade in financial markets
To regulate large financial institutions in the US
11
Portfolio rebalancing is guided by...
All of the above
The asset allocation structure of the portfolio
Current market rates
The portfolio manager's discretion
12
Which of the following is included in the term "found"?
Formal findings
Informal agreements
Examination reports
Cautionary actions
13
What type of treasury security has a maturity greater than 10 years?
T-Options
T-Bonds
T-Bills
T-Notes
14
By managing the discount rate, The Fed can influence...
All of the above
Decisions of businesses and individuals
The general level of interest rates in the market
The Federal Funds Rate
15
Which fee is based on the number of shares sold and the level of involvement in the process?
Management fee
Underwriter fee
Selling concession
None of the above
16
Which type of adviser receives a flat fee for their services?
Flat
Commission-based
Static
Fee-based
17
A ____ outlines the company's annual report & topics that will likely be voted on or discussed during an annual meeting.
10-K
Annual report
Proxy statement
Prospectus
18
FINRA is a non-profit, non-government organization.
False
True
19
In a trust, who is the individual who has control of the assets?
Tenant
Beneficiary
Trustee
Trustor
20
The following currently allow earned income contributions to be made beyond age 70 1/2 EXCEPT?
Employer sponsored 401(k)
Traditional IRA
Employer sponsored 403(b)
Roth IRA
21
The SEC is managed by 7 Commissioners who are appointed by the President of the United States to serve 10 year terms.
True
False
22
The stock price decreases in a...
Reverse stock split
Stock split
Inverse stock split
Multiple stock split
23
In most transactions, the asset is...
None of the above
Settled with cash
Physically delivered
Physically delivered or settled with cash; both are commonly used
24
If an investor was optimistic on the underlying asset, they would...
write and buy put options
Buy call options or write put options
Write call options or buy put options
write and buy call options
25
What is the minimum number of registered General Securities Principals required of each member?
There is NO minimum
Three
One
Two
26
If an individual with a permissive registration is a principal, their registered supervisor must be a...
A representative OR a principal
None of the above
Representative
Principal
27
The secondary market provides a means of liquidity for investors.
True
False
28
Which of the following is NOT a quality of REITs?
Diversification
Protection against rising interest rates
The ability to buy and sell shares easily
Stable dividend income
29
The FDIC ensures the stability and integrity of the nation's financial system through which program:
Supervision
Receivership Management
All of the above
Insurance
30
What does FINRA stand for?
Financial Industry Regulation Applicants
None of the above
Financial Industry Regulatory Authority
Financial Industry Responsible Applicants
31
Which of these is NOT used to determine the amount of liquidity risk an investment carries?
Real value
Bid-ask spread
Trading volume
Trading turnover
32
A ______ is a person's initial registration date.
Beginning date
Base date
Primary date
Active date
33
Name the US Federal Government regulatory body tasked with the protection of investors in the financial market?
All of them are
US Treasury Department
SEC
FINRA
34
What must be given to anyone who is offered the securities in a new issue?
Form S-1
Tombstone
Prospectus
Red herring
35
Who creates and manages fiscal policy?
FINRA
Congress
Presidential Administration
SEC
36
What type of securities can be issued in the primary market?
Debt Securities
Government Securities
None of the above
Equity Securities
37
What represents the total return of a fixed-income security?
Yield-to-maturity
Yield-to-call
Current yield
Total yield
38
What rule details the emergency preparedness rule and Business Continuity Plan procedures?
Rule 3340
Rule 4200
Rule 5250
Rule 4370
39
Corporate actions affecting their securities may fall into what categories?
Optional, voluntary, disclosure-based
Voluntary, mandatory, mandatory with options
Shareholder notice, bondholder notice, SEC notification
Mandatory, stipulated, optional
40
Blue Sky Laws add an additional layer of protection at what level?
The firm level
The investor level
The market level
All of the above
41
____ can also be described as the risk that unexpected inflation will have an unknown impact on the value of an asset.
Capital risk
Credit
Inflationary
Interest rate
42
Which of the following describes a broker-dealer?
An individual or firm that buys and sells financial instruments
An entity that assesses and assumes an issuer's risk for a fee
An individual who provides recommendations for a fee
A firm that gives assets with the goal of receiving financial returns
43
Government agency bonds engage in the following activities:
Provide liquiditty to the mortgage markets
Buy mortgages, securitize loans, dist through dealers
Lending liquidity of last resort
Securitize mortgages, pay interest income
44
If a corporation wants to buy/sell securities, they must provide what?
A business plan
An external auditing of the firm
A corporate resolution
A prospectus
45
What would the settlement date period for government agency bonds?
T + 1 as a government bond
T + 2 regular way
Next business day
Same business day
46
In what market do brokers or dealers trade with institutional investors?
The Fourth Market
The Third Market
Primary Market
Secondary Market
47
Which of the following is subject only to minimal SEC regulatory requirements?
An IPO
A best effort sale
A private placement sale
A seasoned issue
48
What can be used as a tool to identify different phases in the business cycle?
Composite indicator indices
Current market interest rates
GDP
The discount rate
49
After liquidating a stock position an investor reinvested the proceeds into an S&P 500 Index fund. What risk was reduced
Economic
Market
Political
Business
50
The term ____ refers to governmental regulatory bodies and authorized non-governmental regulatory bodies.
Regulatory organization
Regulatory body
Governing body
Governing organization
51
What are the primary tools used by The Fed to promote monetary policy?
The discount rate
Reserve Requirements
Open Market Operations
All of the above
52
There are currently ___ different Uniform Registration Forms that are used for electronic filing.
Five
Three
Four
Six
53
What act states that new issues must be approved by the SEC before being sold to the public?
Public Securities Act
Newly Issued Securities Act
Securities Act
New Issues Act
54
What type of order remains active until it is either executed or cancelled?
Non-discretionary order
Discretionary order
Good-till-cancelled order
Stop-limit order
55
If the settlement period of an asset is 1 day it will be notated as...
T-1
1T
T+1
T
56
Who has high exposure to currency risk?
Multinational companies
The federal government
All companies
Domestic companies
57
This market is referred to as a dark pool...
Primary Market
The Third Market
Secondary Market
The Fourth Market
58
A short position is also known as a ___ position.
Tiger
Lion
Bear
Bull
59
When does an IPO occur?
When a company issues new shares of stock
When a company issues new bonds
All of the above
When a company repurchases stock
60
Systematic risk is also known as...
Undiversifiable risk
Unavoidable risk
All of the above
Market risk
61
Any person who fails to pass a qualification exam by FINRA is permitted to retake the exam after a period of how long?
30 days
180 days
60 days
1 year
62
In what terms are interest rates normally quoted?
Weekly
Monthly
Quarterly
Annual
63
What form would a corporation file, and with what organization, when seeking to sell a primary offering?
An S-1 to the selling underwriter and SEC
A U-2 to the state administrator and SEC
A K-1 to the IRS and SEC
A form S-1 to the SEC
64
Most derivative contracts are settled...
Physically
By book-entry
Electronically
In cash
65
The Uniform Application for Broker-Dealer Registration is also known as...
Form BD
Form U6
Form BDW
Form BR
66
A ___ transaction occurs when a client makes a trade without the advice of an agent.
Unsolicited
Non-discretionary
Unprofessional
Unregistered
67
What represents the total return of a fixed income security?
Total yield
Yield-to-maturity
Yield-to-call
Current yield
