NEW 784 SIE FINRA Exam Questions
and Answers
The Federal regulatory body that governs the securities industry is: >>>The
SEC
A fully disclosed BD: >>>is an inducing firm clearing its transactions
through a carrying firm
An intermediary between the buy and sell sides of a transaction is
known as >>>a clearing agent
For the Depository Trust and Clearing Corporation (DTCC), all of the
following are true EXCEPT:
a. it is a member of the Federal Reserve System
b. It acts as a retail bank servicing savings and checking
accounts c. it serves for the purpose of providing custody
of securities
d. it is a worldwide clearing agent >>>b. it acts as a retail bank servicing
savings and checking accounts
Your BD acts as a prime broker for an institutional account. In this
arrangement, your BD is likely to be providing which of the following
services? >>>clearing and transaction settlement services for executing
brokers
An individual or institution willing to hold securities positions in its own
proprietary account for the purpose of providing liquidity to the marketplace
is >>>a market maker
An entity such as a corporation wishing to offer securities for sale to the
public for the purpose of raising capital is >>>an issuer
A nonprofit organization requiring members to pay assessments into a
general insurance fund used to meet customer claims in the event of a BD
bankruptcy is >>>the Securities Investors Protection Corporation (SIPC)
The FDIC provides insurance guaranteeing the safety of a depositor's accounts
in FDIC member banks for each deposit up to: >>>$250,000
Determining monetary policy and taking actions to implement those policies is
the responsibility of >>>the Federal Reserve Board (FRB)
NEW 784 SIE FINRA Exam Questions and
Answers
,NEW 784 SIE FINRA Exam Questions
and Answers
The Magnolia Steel Corporation needs to build a refinery plant. It is estimated
to cost
$750 million to complete. What market can be used to raise the money
needed to build the new plant? >>>Secondary Market
NEW 784 SIE FINRA Exam Questions and
Answers
,NEW 784 SIE FINRA Exam Questions
and Answers
When securities are sold to the investing public in what are known as
issuer transactions, the transactions are being done in: >>>the
primary market
If an investment company bought stock directly from a bank, bypassing
any intermediary or broker, this trade took place in >>>the fourth
market
Which of the following statements regarding the third market is TRUE?
a. it refers to trading of unlisted stocks directly between institutional
investors b. the services of a broker acting as an agent or
intermediary are not used
c. It is composed of listed securities traded OTC
d. it is composed only of unlisted securities >>>c. It is composed of listed
securities traded OTC
An investor enters an order to purchase shares of XYZ stock. Another
investor enters an order to sell XYZ stock. These two orders meet on the
floor of a US Stock Exchange where they are executed. This transaction too
place in: >>>the secondary market
Assuming all other factors to remain constant, an increase in imports would
most likely cause GDP to >>>decrease
Which state of the business cycle is characterized by rising interest rates
and higher wages? >>>Expansion
An economic environment with little or no economic growth, but where
inflation is present, is best described as >>>Stagflation
It is generally agreed that the two primary policies impacting the U.S.
economy are fiscal and monetary. Which of the following would be
considered tools of fiscal policy?
I. Government Spending
II. Operations of the Federal Open Market Committee
(FOMC) III. Changing the reserve requirements
IV. Taxation >>>Government Spending and Taxation
Which of the following is added to M2 to arrive at M3? >>>$100,000 and
NEW 784 SIE FINRA Exam Questions and
Answers
, NEW 784 SIE FINRA Exam Questions
and Answers
larger time deposits
Which of the following actions of the Federal Reserve Board (FRB) would
likely have the effect of causing interest rates to increase?
I. The FOMC buying securities
II. Raising the reserve
requirements III. Raising the
discount rate
IV. Raising the prime rate >>>Raising the reserve requirements & Raising the
discount rate
Economic data shows that the GDP has been declining steadily over the past
two quarters. This would suggest >>>a recession
All of the following would be considered a defensive industry security EXCEPT:
A. Tobacco stock
B. Food chain
stock
C. Steel company stock
D. Utility company stock >>>steel company stock
Which of the following would be a leading economic indicator?
a. S&P 500 Index
b. Industrial production
c. Duration of
unemployment d. GDP
>>>S&P 500 Index
When a government actively manipulates the economy through tax
and spending policies, this is referred to as >>>Keynesian Economics
A major distinction of secondary offering is >>>proceeds are not received
by the issuer of the securities
How many primary offerings can a corporation issue? >>>Unlimited
A corporation can only have one initial public offering (IPO), but there is no
limit on the number of subsequent public offerings (SPOs) or additional
public offerings (APOs) issued.
NEW 784 SIE FINRA Exam Questions and
Answers
and Answers
The Federal regulatory body that governs the securities industry is: >>>The
SEC
A fully disclosed BD: >>>is an inducing firm clearing its transactions
through a carrying firm
An intermediary between the buy and sell sides of a transaction is
known as >>>a clearing agent
For the Depository Trust and Clearing Corporation (DTCC), all of the
following are true EXCEPT:
a. it is a member of the Federal Reserve System
b. It acts as a retail bank servicing savings and checking
accounts c. it serves for the purpose of providing custody
of securities
d. it is a worldwide clearing agent >>>b. it acts as a retail bank servicing
savings and checking accounts
Your BD acts as a prime broker for an institutional account. In this
arrangement, your BD is likely to be providing which of the following
services? >>>clearing and transaction settlement services for executing
brokers
An individual or institution willing to hold securities positions in its own
proprietary account for the purpose of providing liquidity to the marketplace
is >>>a market maker
An entity such as a corporation wishing to offer securities for sale to the
public for the purpose of raising capital is >>>an issuer
A nonprofit organization requiring members to pay assessments into a
general insurance fund used to meet customer claims in the event of a BD
bankruptcy is >>>the Securities Investors Protection Corporation (SIPC)
The FDIC provides insurance guaranteeing the safety of a depositor's accounts
in FDIC member banks for each deposit up to: >>>$250,000
Determining monetary policy and taking actions to implement those policies is
the responsibility of >>>the Federal Reserve Board (FRB)
NEW 784 SIE FINRA Exam Questions and
Answers
,NEW 784 SIE FINRA Exam Questions
and Answers
The Magnolia Steel Corporation needs to build a refinery plant. It is estimated
to cost
$750 million to complete. What market can be used to raise the money
needed to build the new plant? >>>Secondary Market
NEW 784 SIE FINRA Exam Questions and
Answers
,NEW 784 SIE FINRA Exam Questions
and Answers
When securities are sold to the investing public in what are known as
issuer transactions, the transactions are being done in: >>>the
primary market
If an investment company bought stock directly from a bank, bypassing
any intermediary or broker, this trade took place in >>>the fourth
market
Which of the following statements regarding the third market is TRUE?
a. it refers to trading of unlisted stocks directly between institutional
investors b. the services of a broker acting as an agent or
intermediary are not used
c. It is composed of listed securities traded OTC
d. it is composed only of unlisted securities >>>c. It is composed of listed
securities traded OTC
An investor enters an order to purchase shares of XYZ stock. Another
investor enters an order to sell XYZ stock. These two orders meet on the
floor of a US Stock Exchange where they are executed. This transaction too
place in: >>>the secondary market
Assuming all other factors to remain constant, an increase in imports would
most likely cause GDP to >>>decrease
Which state of the business cycle is characterized by rising interest rates
and higher wages? >>>Expansion
An economic environment with little or no economic growth, but where
inflation is present, is best described as >>>Stagflation
It is generally agreed that the two primary policies impacting the U.S.
economy are fiscal and monetary. Which of the following would be
considered tools of fiscal policy?
I. Government Spending
II. Operations of the Federal Open Market Committee
(FOMC) III. Changing the reserve requirements
IV. Taxation >>>Government Spending and Taxation
Which of the following is added to M2 to arrive at M3? >>>$100,000 and
NEW 784 SIE FINRA Exam Questions and
Answers
, NEW 784 SIE FINRA Exam Questions
and Answers
larger time deposits
Which of the following actions of the Federal Reserve Board (FRB) would
likely have the effect of causing interest rates to increase?
I. The FOMC buying securities
II. Raising the reserve
requirements III. Raising the
discount rate
IV. Raising the prime rate >>>Raising the reserve requirements & Raising the
discount rate
Economic data shows that the GDP has been declining steadily over the past
two quarters. This would suggest >>>a recession
All of the following would be considered a defensive industry security EXCEPT:
A. Tobacco stock
B. Food chain
stock
C. Steel company stock
D. Utility company stock >>>steel company stock
Which of the following would be a leading economic indicator?
a. S&P 500 Index
b. Industrial production
c. Duration of
unemployment d. GDP
>>>S&P 500 Index
When a government actively manipulates the economy through tax
and spending policies, this is referred to as >>>Keynesian Economics
A major distinction of secondary offering is >>>proceeds are not received
by the issuer of the securities
How many primary offerings can a corporation issue? >>>Unlimited
A corporation can only have one initial public offering (IPO), but there is no
limit on the number of subsequent public offerings (SPOs) or additional
public offerings (APOs) issued.
NEW 784 SIE FINRA Exam Questions and
Answers
