Free SIE Questions for FINRA SIE Exam

Question #1

A primary purpose of the IRS is to perform which of the following activities?

A. Administer and supervise the execution of tax laws

B. Issue criminal penalties for intentional circumvention of federal banking laws

C. Apply Office of Foreign Assets Control requirements to sanction wrongdoing by targeted foreign entities

D. Regulate broker-dealers by enforcing federal securities laws

Discussion 0

Correct Answer: A Vote an answer

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Question #2

Which of the following events requires reporting on a Form U4?

A. A bench warrant for missing a court date

B. A misdemeanor speeding ticket

C. A felony conviction for drunk driving

D. A gross-misdemeanor domestic assault conviction

Discussion 0

Correct Answer: C Vote an answer

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Question #3

An individual investor has $300,000 in cash and $400,000 in securities held with a financially troubled SIPC member firm for which liquidation has begun. The individual investor's cash is protected for what amount?

A. $700,000

B. $250,000

C. $300,000

D. $150,000

Discussion 0

Correct Answer: B Vote an answer

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Question #4

Callable preferred stock is most likely to be called when interest rates are:

A. Fluctuating

B. Stable

C. Rising

D. Falling

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Correct Answer: D Vote an answer

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Question #5

Which of the following statements is true about U.S. government agency issues?

A. They are backed by the full faith and credit of the U.S. government.

B. They usually sell at a higher yield than Treasury securities of equal maturity.

C. They are traded only on the NYSE.

D. They pay interest quarterly.

Discussion 0

Correct Answer: B Vote an answer

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Question #6

Which of the following entities settles broker-to-broker equity, listed corporate and municipal bond, and unit investment trust (UIT) transactions in the U.S. equities markets?

A. National Securities Clearing Corporation (NSCC)

B. FINRA

C. Federal Reserve

D. SEC

Discussion 0

Correct Answer: A Vote an answer

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Question #7

Which of the following portfolios is diversified across asset classes?

A. A portfolio of municipal bonds that is laddered to include various maturity dates

B. A portfolio that invests in regional banks located in the Midwest

C. A portfolio of real estate investment trusts that contains residential and commercial properties

D. A portfolio that includes a mix of equity and fixed income investments

Discussion 0

Correct Answer: D Vote an answer

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Question #8

Assume that the economy is operating at nearly full capacity. The initial results of an oversupply of money are most likely to have the greatest impact on which of the following macroeconomic factors?

A. Real output

B. Velocity of money

C. Inflation rate

D. Unemployment rate

Discussion 0

Correct Answer: C Vote an answer

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Question #9

Which of the following responses describes a covered call?

A. Short stock and long calls

B. Long calls and long puts

C. Long two calls and short one call

D. Long stock and short calls

Discussion 0

Correct Answer: D Vote an answer

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Question #10

Which of the following types of stock refers to the maximum number of shares a corporation is legally permitted to issue, as specified in its articles of incorporation?

A. Treasury stock

B. Restricted stock

C. Authorized stock

D. Issued stock

Discussion 0

Correct Answer: C Vote an answer

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Question #11

When opening an account for an employee of another member firm, FINRA rules require a member firm to meet all of the following requirements except:

A. Forward duplicate confirmations and statements to the employer firm if requested by the employer firm to do so.

B. Request prior written approval from FINRA.

C. Advise the employee that it will notify the employer firm of the account opening.

D. Send written notice to the employer firm prior to executing the initial order for the employee's account.

Discussion 0

Correct Answer: B Vote an answer

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Question #12

Which of the following investments provides foreign investment exposure?

A. Treasury bills

B. American Depositary Receipts (ADRs)

C. SPDR S & P 500 ETF (SPY)

D. Municipal bonds

Discussion 0

Correct Answer: B Vote an answer

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Question #13

Which of the following information is typically contained in the preliminary prospectus for a company conducting an initial public offering (IPO)?

A. SEC approval of the merits of the offering

B. Ownership structure

C. Anticipated trading volume

D. FINRA determination that the preliminary prospectus is accurate

Discussion 0

Correct Answer: B Vote an answer

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Question #14

Which of the following statements is permissible for a registered representative (RR) to say to their customer?

A. "This stock has a beta coefficient of 2.0; therefore, it will outperform the market."

B. "Having considered your risk tolerance, investment objectives and liquidity needs, I believe that an investment in Company XYZ is the best choice for you at this time."

C. "Since your investment objective is preservation of capital, you should look at low-risk investments to minimize the chances of losing money. Considering the low-risk nature of investing in Company ABC, my firm has decided that it will guarantee against any downside, which makes this the best choice for you at this time."

D. "Based on the firm's most recent 'Buy' recommendation, the firm will reimburse you in the unlikely event of a loss."

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Correct Answer: B Vote an answer

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Question #15

The provision that allows a bond issuer to purchase bonds from customers prior to the maturity date on the bond is known as a:

A. Put

B. Call

C. Conversion

D. Defeasement

Discussion 0

Correct Answer: B Vote an answer

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