STC SIE Final Exam 2025 With 100%
Correct Answers
When warrants are issued, the exercise price is:
A. Lower than the current market price of the stock
B. Higher than the current market price of the stock
C. Equal to the current market price of the stock
D. Based on the average price of the stock over the last year - CORRECT ANSWER✔✔B. Higher
than the current market price of the stock
A individual has a mix of small-cap growth stocks, large-cap stocks from mature industries,
investment-grade bonds, speculative bonds, preferred stock, and foreign securities. She is
attempting to reduce:
A. Liquidity risk
B. Credit risk
C. Money-rate risk
D. Market risk - CORRECT ANSWER✔✔D. Market risk
The U.S. government does NOT guarantee the payment of interest and principal for which of the
following securities?
A. GNMA (Ginnie Mae) securities
B. Treasury notes
C. Treasury Receipts
, D. FHLMC (Freddie Mac) securities - CORRECT ANSWER✔✔D. FHLMC (Freddie Mac) securities
The Municipal Securities Rulemaking Board (MSRB) does NOT regulate which of the following?
A. Municipal dealers
B. Municipal salespersons
C. Municipal advertising
D. Municipal issuers - CORRECT ANSWER✔✔D. Municipal issuers
If an investment's distribution increases by 3% while inflation has increased by 3%, what's the
impact on the investment's purchasing power?
A. It decreases.
B. It stays the same.
C. It increases.
D. It increases by 3%. - CORRECT ANSWER✔✔B. It stays the same.
When an investment's distribution increases by the same amount as inflation, the purchasing
power remains the same. If inflation outpaces an investment's return, the purchasing power will
decrease. If the rate of inflation is lower than an investment's return, the purchasing power will
increase. (17591)
Which of the following stipulations is NOT included in a letter of intent?
A. The maximum time limit for the letter of intent is 13 months.
B. The letter of intent may be backdated for up to 90 days.
C. The fund may stop redemptions during the duration of the letter of intent.
Correct Answers
When warrants are issued, the exercise price is:
A. Lower than the current market price of the stock
B. Higher than the current market price of the stock
C. Equal to the current market price of the stock
D. Based on the average price of the stock over the last year - CORRECT ANSWER✔✔B. Higher
than the current market price of the stock
A individual has a mix of small-cap growth stocks, large-cap stocks from mature industries,
investment-grade bonds, speculative bonds, preferred stock, and foreign securities. She is
attempting to reduce:
A. Liquidity risk
B. Credit risk
C. Money-rate risk
D. Market risk - CORRECT ANSWER✔✔D. Market risk
The U.S. government does NOT guarantee the payment of interest and principal for which of the
following securities?
A. GNMA (Ginnie Mae) securities
B. Treasury notes
C. Treasury Receipts
, D. FHLMC (Freddie Mac) securities - CORRECT ANSWER✔✔D. FHLMC (Freddie Mac) securities
The Municipal Securities Rulemaking Board (MSRB) does NOT regulate which of the following?
A. Municipal dealers
B. Municipal salespersons
C. Municipal advertising
D. Municipal issuers - CORRECT ANSWER✔✔D. Municipal issuers
If an investment's distribution increases by 3% while inflation has increased by 3%, what's the
impact on the investment's purchasing power?
A. It decreases.
B. It stays the same.
C. It increases.
D. It increases by 3%. - CORRECT ANSWER✔✔B. It stays the same.
When an investment's distribution increases by the same amount as inflation, the purchasing
power remains the same. If inflation outpaces an investment's return, the purchasing power will
decrease. If the rate of inflation is lower than an investment's return, the purchasing power will
increase. (17591)
Which of the following stipulations is NOT included in a letter of intent?
A. The maximum time limit for the letter of intent is 13 months.
B. The letter of intent may be backdated for up to 90 days.
C. The fund may stop redemptions during the duration of the letter of intent.
