1 for specific request mail
SIE STC USA Greenlight Exam 1 Questions and
Correct Answers | Latest Update
Which of the following statement is NOT TRUE regarding the Uniform
Gifts to Minors Act?
A. only one custodian is allowed for each account
B. The minor is responsible for all taxes due on dividends and interest
received from securities held in the account
C. only an adult may be a custodian
Assignment Expert
D. securities must be held in the name of the brokerage form
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Ans: D
All of the choices regarding the Uniform Gift to Minors Act are true
EXCEPT securities must be held in the name of the brokerage firm (Street
2026
name). All securities are registered in the name of the custodian for the
minor.
©
A limited partner would be in jeopardy of losing her limited liability if
the partner:
A. Received a portion of the project's income and deductions
B. assisted in the decision of which properties to acquire
C. insisted on examining the partnership's financial records
D. made a loan to the partnership
Ans: B
Limited partners have the right to receive their portion of income and
losses, examine books and records, and make loans to the partnership. If
they get involved in the management of the program, such as deciding
, 2 for specific request mail
which properties to acquire, they could be considered general partners
and lose their limited liability.
Which of the following is NOT a type of unsystematic risk?
A. Political Risk
B. Business risk
C. Credit risk
D. Market risk
Assignment Expert
Ans: D
Market risk is a form of systematic risk and cannot be avoided by
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securities investor. For example, if the overall stock market is declining,
it will negatively affect all of the stocks in the market. Conversely,
unsystematic risk is able to be reduced through appropriate
diversification.
2026
A registered person has received a gift that's valued at $150 from the
©
FINRA member firm through which her firm clears trades. This gift is
considered:
A. Excessive
B. Acceptable, but only it it's documented by the gifting firm
C. Acceptable, but only if it's documented by the receiving firm
D. Acceptable
Ans: A
If an associated person of a member firm provides a gift that exceeds
$100 from another FINRA member firm, it's unacceptable and a violation
of FINRA rules.
, 3 for specific request mail
Three-month and six-month Treasury bills are auctioned by the Federal
Reserve Board:
A. Daily
B. Weekly
C. Monthly
D. Annually
Ans: B
Assignment Expert
Three-month and six-month Treasury Bills are sold at public auctions
each Monday.
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An uncle would like to invest for his nephew's college education. Which
of the following factors is a benefit of a 529 plan?
A. Uniformity of state taxation
2026
B. Pretax contributions
©
C. Change of beneficiaries allowed
D. No limits on contributions
Ans: C
The owner of a 529 plan may change beneficiaries. Contributions are
made on an after-tax basis, and are based on state rules, which vary from
state to state. Contributions are limited, and vary by state.
A brokerage firm will generally distribute which of the folloing to
employees of the firm?
A. The restricted list
B. The watch list
, 4 for specific request mail
C. A list of the mutual funds it recommends to customers
D. A list of the stocks in which it makes a market
Ans: A
Restricted and watch lists include securities that employees are either
restricted or prohibited from trading, or issues that are subject to closer
scrutiny by the brokerage firm. The restriction or limitations associated
with the lists apply to the employee transactions and to solicited
transactions with customers. The restricted list must be distributed to
employees; however, the content of the watch list is generally known
Assignment Expert
only to selected members of the legal and compliance departments.
Which of the following is the rate that commercial banks charge on loans
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to broker-dealers for margin purposes?
A. Prime rate
2026
B. discount rate
C. Federal funds rate
©
D. Call rate
Ans: D
The call rate is what commercial banks charge on loans to broker-dealers
for margin purposes. The prime rate is the rate that commercial banks
charge to their best corporate clients. The discount rate is what the
Federal Reserve charges when lending to member banks. The federal
funds rate is the rate charged on overnight loans between member banks.
An investor has a portfolio of bonds that yields 6%. Interest rates have
been falling and most of the bonds in the portfolio are due to mature
which will force the investor to seek new bonds at lower yields. This
investor is experiencing:
SIE STC USA Greenlight Exam 1 Questions and
Correct Answers | Latest Update
Which of the following statement is NOT TRUE regarding the Uniform
Gifts to Minors Act?
A. only one custodian is allowed for each account
B. The minor is responsible for all taxes due on dividends and interest
received from securities held in the account
C. only an adult may be a custodian
Assignment Expert
D. securities must be held in the name of the brokerage form
Guru01 - Stuvia
Ans: D
All of the choices regarding the Uniform Gift to Minors Act are true
EXCEPT securities must be held in the name of the brokerage firm (Street
2026
name). All securities are registered in the name of the custodian for the
minor.
©
A limited partner would be in jeopardy of losing her limited liability if
the partner:
A. Received a portion of the project's income and deductions
B. assisted in the decision of which properties to acquire
C. insisted on examining the partnership's financial records
D. made a loan to the partnership
Ans: B
Limited partners have the right to receive their portion of income and
losses, examine books and records, and make loans to the partnership. If
they get involved in the management of the program, such as deciding
, 2 for specific request mail
which properties to acquire, they could be considered general partners
and lose their limited liability.
Which of the following is NOT a type of unsystematic risk?
A. Political Risk
B. Business risk
C. Credit risk
D. Market risk
Assignment Expert
Ans: D
Market risk is a form of systematic risk and cannot be avoided by
Guru01 - Stuvia
securities investor. For example, if the overall stock market is declining,
it will negatively affect all of the stocks in the market. Conversely,
unsystematic risk is able to be reduced through appropriate
diversification.
2026
A registered person has received a gift that's valued at $150 from the
©
FINRA member firm through which her firm clears trades. This gift is
considered:
A. Excessive
B. Acceptable, but only it it's documented by the gifting firm
C. Acceptable, but only if it's documented by the receiving firm
D. Acceptable
Ans: A
If an associated person of a member firm provides a gift that exceeds
$100 from another FINRA member firm, it's unacceptable and a violation
of FINRA rules.
, 3 for specific request mail
Three-month and six-month Treasury bills are auctioned by the Federal
Reserve Board:
A. Daily
B. Weekly
C. Monthly
D. Annually
Ans: B
Assignment Expert
Three-month and six-month Treasury Bills are sold at public auctions
each Monday.
Guru01 - Stuvia
An uncle would like to invest for his nephew's college education. Which
of the following factors is a benefit of a 529 plan?
A. Uniformity of state taxation
2026
B. Pretax contributions
©
C. Change of beneficiaries allowed
D. No limits on contributions
Ans: C
The owner of a 529 plan may change beneficiaries. Contributions are
made on an after-tax basis, and are based on state rules, which vary from
state to state. Contributions are limited, and vary by state.
A brokerage firm will generally distribute which of the folloing to
employees of the firm?
A. The restricted list
B. The watch list
, 4 for specific request mail
C. A list of the mutual funds it recommends to customers
D. A list of the stocks in which it makes a market
Ans: A
Restricted and watch lists include securities that employees are either
restricted or prohibited from trading, or issues that are subject to closer
scrutiny by the brokerage firm. The restriction or limitations associated
with the lists apply to the employee transactions and to solicited
transactions with customers. The restricted list must be distributed to
employees; however, the content of the watch list is generally known
Assignment Expert
only to selected members of the legal and compliance departments.
Which of the following is the rate that commercial banks charge on loans
Guru01 - Stuvia
to broker-dealers for margin purposes?
A. Prime rate
2026
B. discount rate
C. Federal funds rate
©
D. Call rate
Ans: D
The call rate is what commercial banks charge on loans to broker-dealers
for margin purposes. The prime rate is the rate that commercial banks
charge to their best corporate clients. The discount rate is what the
Federal Reserve charges when lending to member banks. The federal
funds rate is the rate charged on overnight loans between member banks.
An investor has a portfolio of bonds that yields 6%. Interest rates have
been falling and most of the bonds in the portfolio are due to mature
which will force the investor to seek new bonds at lower yields. This
investor is experiencing:
