SIE (MASTERY TEST) 2024-2025 QUESTIONS
WITH VERIFIED SOLUTIONS
All of the following are U.S. government agency debt securities EXCEPT
A) Government National Mortgage Association securities
B) Farm Credit Administration securities
C) Federal National Mortgage Association securities
D) Treasury notes - CORRECT ANSWER D) Treasury notes
GNMA, Freddie & Fannie, Farm Credit Admin
Numbers measuring the output of goods and services have been declining for just under
2 years. The economy would be characterized as
A) being just under the recessionary measurement threshold
B) expanding
C) being in an economic trough within the business cycle
D) being in a depression - CORRECT ANSWER D) being in a depression
a trough is the end of of of declining period
Which of the following mutual fund share classes has no back-end load, lower operating
expenses, and low or no 12b-1 fees?
A) Class A
B) Class B
C) Class C upon conversion to Class B
D) Class C - CORRECT ANSWER A) Class A
The federal act that requires registration with the SEC as a face-amount certificate
company, unit investment trust company, or management company is
A) the Securities Act of 1933
B) the Investment Company Act of 1940
, SIE (MASTERY TEST) 2024-2025 QUESTIONS
WITH VERIFIED SOLUTIONS
C) the Trust Indenture Act of 1939
D) the Securities Exchange Act of 1934 - CORRECT ANSWER Investment Company
Act of 1940
Local government investment pools (LGIPs) are established by
A) states to provide municipalities a place to invest funds short term
B) local municipalities to allow states a place to invest funds short term
C) states to provide municipalities a place to invest funds long term
D) the federal government to provide municipalities a place to invest funds long term -
CORRECT ANSWER STATES provide municipalities a place to invest funds SHORT term
Regarding stock rights and stock warrants, which of the following is TRUE?
A) Warrants are sometimes bundled with other securities.
B) Warrants have a short-term subscription length (expiry).
C) Rights cannot be sold in the open market, only exercised once received.
D) Rights are exercised to purchase shares at a premium, above the security's price
when issued. - CORRECT ANSWER A) Warrants are sometimes bundled with other
securities.
Which of the following persons would be allowed to purchase shares of an initial public
offering (IPO)?
A) An attorney acting on behalf of the managing underwriter
B) The grandparent of a member broker-dealer employee
C) Someone owning 15% of a member broker-dealer
D) The father of a member broker-dealer employee - CORRECT ANSWER B) The
grandparent of a member broker-dealer employee
Aunts, uncles, grandparents are NOT considered immediate family
WITH VERIFIED SOLUTIONS
All of the following are U.S. government agency debt securities EXCEPT
A) Government National Mortgage Association securities
B) Farm Credit Administration securities
C) Federal National Mortgage Association securities
D) Treasury notes - CORRECT ANSWER D) Treasury notes
GNMA, Freddie & Fannie, Farm Credit Admin
Numbers measuring the output of goods and services have been declining for just under
2 years. The economy would be characterized as
A) being just under the recessionary measurement threshold
B) expanding
C) being in an economic trough within the business cycle
D) being in a depression - CORRECT ANSWER D) being in a depression
a trough is the end of of of declining period
Which of the following mutual fund share classes has no back-end load, lower operating
expenses, and low or no 12b-1 fees?
A) Class A
B) Class B
C) Class C upon conversion to Class B
D) Class C - CORRECT ANSWER A) Class A
The federal act that requires registration with the SEC as a face-amount certificate
company, unit investment trust company, or management company is
A) the Securities Act of 1933
B) the Investment Company Act of 1940
, SIE (MASTERY TEST) 2024-2025 QUESTIONS
WITH VERIFIED SOLUTIONS
C) the Trust Indenture Act of 1939
D) the Securities Exchange Act of 1934 - CORRECT ANSWER Investment Company
Act of 1940
Local government investment pools (LGIPs) are established by
A) states to provide municipalities a place to invest funds short term
B) local municipalities to allow states a place to invest funds short term
C) states to provide municipalities a place to invest funds long term
D) the federal government to provide municipalities a place to invest funds long term -
CORRECT ANSWER STATES provide municipalities a place to invest funds SHORT term
Regarding stock rights and stock warrants, which of the following is TRUE?
A) Warrants are sometimes bundled with other securities.
B) Warrants have a short-term subscription length (expiry).
C) Rights cannot be sold in the open market, only exercised once received.
D) Rights are exercised to purchase shares at a premium, above the security's price
when issued. - CORRECT ANSWER A) Warrants are sometimes bundled with other
securities.
Which of the following persons would be allowed to purchase shares of an initial public
offering (IPO)?
A) An attorney acting on behalf of the managing underwriter
B) The grandparent of a member broker-dealer employee
C) Someone owning 15% of a member broker-dealer
D) The father of a member broker-dealer employee - CORRECT ANSWER B) The
grandparent of a member broker-dealer employee
Aunts, uncles, grandparents are NOT considered immediate family
