FINRA SIE 2023 Practice Test Questions with All Correct Answers

FINRA SIE 2023 Practice Test Questions with All Correct Answers A decline in the gross domestic product (GDP) must last for at least how many quarters to be considered a recession? - ANSWER 2 quarters Under FINRA rules, which of the following activities by a registered representative requires written notification to her firm? - ANSWER Driving part time for a transportation network company on weekends Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the following investors? - ANSWER Qualified institutional buyers (QIBs) A broker-dealer is permitted to accept payment for a new issue from a new customer when the: - ANSWER registration is effective At issue, which of the following debt securities mature in one year or less? - ANSWER money market instruments The primary purpose of a syndicate desk in the context of an equity offering is to: - ANSWER build an order book and allocate the stock In a period of low inflation and economic recession, the Federal Reserve is expected to take which of the following actions? - ANSWER Buy bonds in the open market (this will increase the money supply causing interest rates to decrease so people can borrow money) Which of the following actions is required when a firm receives cash in excess of $10,000 from one customer in one business day? - ANSWER File a Currency Transaction Report (CTR) A savings account at a bank is guaranteed by which of the following entities? - ANSWER FDIC Which of the following actions is required of a broker-dealer's anti-money laundering (AML) program? - ANSWER Designating an AML compliance officer Which of the following investment risks is the greatest risk in a variable life insurance policy? - ANSWER market risk Upon expiration, all in-the-money S&P 100 Index call options are settled by the delivery of which of the following? - ANSWER cash Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid for what maximum period of time? - ANSWER 13 months A member of a stock exchange responsible for providing liquidity in a security by being willing to buy and sell at all times is known as: - ANSWER market maker In which of the following situations is an employee of a public company permitted to trade upon information without violating insider trading laws? - ANSWER An independent securities analyst explains to the employee why the earnings for the company next quarter could be markedly poorer than expected