75 SIE FINRA Practice EXAM Questions
and Answers
UTMA Accounts are opened under the tax ID of the:
A. Minor
B. Donor
C. Parent
D. Custodian >>>A. Minor
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100
shares of ABC stock for $35 per share. The customer will break even when the stock is
selling at what price per share at expiration?
A. $3
B. $32
C. $35
D. $38 >>>D. $38
The owner of which of the following products is MOST exposed to inflationary risk?
A. Utility Stocks
B. Treasury bills
C. Treasury Bonds
D. Blue Chip Industrials >>>C. Treasury bonds
If a market maker posts a quote of 10.00 - 10.10 [25x10], which of the following actions
is the market maker willing to take?
A. Sell 1,000 shares at $10.00 and buy 2,500 shares at $10.10
B. Buy 2,500 shares at $10.00. and sell 1,000 shares at $10.10
C. Sell 100 shares at $10.00 and buy 250 shares at $10.10
D. Buy 250 shares at $10.00 and sell 100 shares at $10.10 >>>B. Buy 2,500 shares at
$10.00 and sell 1,000 shares at $10.10
Direct Participation Programs (DPPs) provide:
A. Liquidity and transparency
B. Exposure to non-correlated assets with steady returns
C. Market-related correlations with higher average returns
D. Investors with direct purchases of stock from public companies >>>B. Exposure to
non-correlated assets with steady returns
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 >>>D. Maturities of the debt securities are
short
A customer has a crash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her an account statement?
A. Monthly
B. Quarterly
C. Seminannually
D. Annually >>>B. Quarterly
FinCEN accomplishes its mission to safeguard the financial system from the abuses of
financial crime, including terrorist financing and money laundering, by enforcing:
A. SEC regulations
B. The Bank Secrecy Act
C. The Securities Act of 1933
D. The Investment Company Act of 1940 >>>B. The Bank Secrecy Act
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 >>>B. Market Risk
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 >>>A. The
potential deductibility of contributions from state taxes
An investor owns 100 shares of XYZ common stock at the current market price of $50
per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split stock
position will be:
A. 50 shares at $25 per share
B. 50 shares at $100 per share
and Answers
UTMA Accounts are opened under the tax ID of the:
A. Minor
B. Donor
C. Parent
D. Custodian >>>A. Minor
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100
shares of ABC stock for $35 per share. The customer will break even when the stock is
selling at what price per share at expiration?
A. $3
B. $32
C. $35
D. $38 >>>D. $38
The owner of which of the following products is MOST exposed to inflationary risk?
A. Utility Stocks
B. Treasury bills
C. Treasury Bonds
D. Blue Chip Industrials >>>C. Treasury bonds
If a market maker posts a quote of 10.00 - 10.10 [25x10], which of the following actions
is the market maker willing to take?
A. Sell 1,000 shares at $10.00 and buy 2,500 shares at $10.10
B. Buy 2,500 shares at $10.00. and sell 1,000 shares at $10.10
C. Sell 100 shares at $10.00 and buy 250 shares at $10.10
D. Buy 250 shares at $10.00 and sell 100 shares at $10.10 >>>B. Buy 2,500 shares at
$10.00 and sell 1,000 shares at $10.10
Direct Participation Programs (DPPs) provide:
A. Liquidity and transparency
B. Exposure to non-correlated assets with steady returns
C. Market-related correlations with higher average returns
D. Investors with direct purchases of stock from public companies >>>B. Exposure to
non-correlated assets with steady returns
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 >>>D. Maturities of the debt securities are
short
A customer has a crash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her an account statement?
A. Monthly
B. Quarterly
C. Seminannually
D. Annually >>>B. Quarterly
FinCEN accomplishes its mission to safeguard the financial system from the abuses of
financial crime, including terrorist financing and money laundering, by enforcing:
A. SEC regulations
B. The Bank Secrecy Act
C. The Securities Act of 1933
D. The Investment Company Act of 1940 >>>B. The Bank Secrecy Act
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 >>>B. Market Risk
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 >>>A. The
potential deductibility of contributions from state taxes
An investor owns 100 shares of XYZ common stock at the current market price of $50
per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split stock
position will be:
A. 50 shares at $25 per share
B. 50 shares at $100 per share
