STC SIE Final Exam Prep #5 Questions and Answers

STC SIE Final Exam Prep #5 Questions and 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 - 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 - 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 - 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 - 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%. - Answer- B. It stays the same.