FINRA SIE PRACTICE TEST QUESTIONS with correct answers.

FINRA SIE PRACTICE TEST QUESTIONS with correct answers. The owner of which of the following products is MOST exposed to inflationary risk? - correct answers.Treasury Bonds have a higher inflationary risk than Blue chip industries, T-Bills, or Utility stocks. Which of the following considerations should a registered representative explain t a customer when recommending a 529 college savings plan? - correct answers.The potential deductibility of contributions from state taxes. To offer its shareholders a privilege to obtain its shares at a fixed price, which products does a corporation issue? - correct answers.Rights Political campaign contribution limit? - correct answers.$250 A registered representative (RR) who wants to place a mutual fund advertisement must obtain written approval from from which party? - correct answers.A registered principal of the RR's firm. If a market maker post a quote of 10.00-10.10 (25x10) which of the following actions is the market maker willing to take? - correct answers.Buy 2,500 shares at $10.00 and sell 1,000 shares at 10.10. A transaction in which a writer covers a position by purchasing an option is called? - correct answers.A closing purchase. Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer opens and closes which of the following positions? - correct answers.The same stock in a cash account without paying for the stock in full. Letter of Intent is valid for? - correct answers.13 months Under rule 144A, an issuer of restricted stock is permitted to sell to which type of investor? - correct answers.Qualified institutional buyers (QB's) A member of a stock exchange responsible for providing liquidity in a security buy being willing to buy and sell at all times is known as? - correct answers.A Marker Maker. Which of the following security types provides investors with a stated maturity date, a floating interest rate, and an option to put the society back to a financial intermediary on a daily or weekly basis? - correct answers.Variable rate demand note. Which of the following statements is true regarding the concept of annuity contracts? - correct answers.The kind of annuity selected partly determines the payment amounts to the annuitant. Blue-sky laws are regulated by which of the following entities? - correct answers.State securities regulators. Under the securities act of 1933, registration is required for these securities? - correct answers.American depository receipts (ADRs) UTMA accounts are opened under the tax ID of the? - correct answers.Minor. A broker-dealer is permitted to accept payment for a new issues from a new customer when the: - correct answers.Registration is effective. Under industry regulations, an initial purchase of $3,000 of common stock in a margin account requires a cash deposit of? - correct answers.$2,000 Roth 401 (k) and Roth individual retirement account (IRA) plans share which of the following features? - correct answers.Qualified distributions are excluded from federal income tax. Accredited Investor - correct organization or individual investor who meets certain criteria established by the SEC and so qualifies to invest in unregistered securities. 200k Annual income (single) 300k married the last two yrs with a reasonable expectation of having the same income next yr. /1 mil excluding primary residence. The call provision of a bond stipulates... - correct answers.The call date and call price. Difference between a primary distribution and a secondary distribution? - correct answers.A primary distribution involves a sale of newly issued shares by the issuer while a secondary distribution involves the sale of already issued and outstanding shares. What is the cost basis of an inherited mutual fund? - correct answers.The net asset value (NAV) of the shares when the owner dies. Selling away - correct answers.Engaging in private securities transactions without written prior consent of the employing BD. Which of the following actions is required of a broker-dealer's anti-money laundering (AML) program? - correct answers.Designating an AML compliance officer Direct participation programs (Dpps) provide? - correct answers.Liquidity and transparency.