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Final Exam 04 SIE 85 Questions with Verified Answers,100% CORRECT
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Final Exam 04 SIE 85 Questions with Verified Answers
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Final Exam 04 SIE 85 Questions with Verified AnswersRegarding continuing education for a registered person of a broker-dealer, which
of the following statements is NOT TRUE?
a. He is required to retake the applicable qualification examination to meet FINRA
requirements regarding continuing education.
b. He is required to complete the Regulatory Element.
Tc. here is both a Regulatory and a Firm Element requirement.
d. The person will have all of his registrations deemed inactive if he fails to
complete the Regulatory Element of the Continuing Education program. -
CORRECT ANSWER a.
He is required to retake the applicable qualification examination to meet FINRA
requirements regarding continuing education.
The goal of which of the following entities is to increase the volume of securities
transactions by eliminating physical delivery with a book entry system?
A. SEC
B. FINRA
C. DTCC
D. OCC - CORRECT ANSWER C. DTCC
A registered representative purchased a vacation property, but it has since fallen
in value. The RR decides to sell the property short and the bank agrees to accept
the proceeds of the sale as payment in full for the mortgage. Is the registered
representative required to take any action?
,A. Yes, the RR must notify FINRA.
B. Yes, the RR must obtain her broker-dealer's preapproval of the short sale.
C. Only if the property has gone into foreclosure.
D. Only if the property was the RR's primary residence. - CORRECT ANSWER a.
Yes, the RR must notify FINRA.
Which mutual fund expense is used to pay the fund manager's fee?
A. Front-end sales charges
B. Administrative expenses
C. Operating expenses
D. 12b-1 fees - CORRECT ANSWER C. Operating expenses
The beneficiary of a Section 529 plan may make qualified withdrawals from the
plan for:
A. Buying an automobile that will be used to get to school
B. Paying the tuition for an out-of-state college
C. Buying furniture for her dorm room
D. Paying the costs of printing and mailing her résumé after graduation - CORRECT
ANSWER B. Paying the tuition for an out-of-state college
In order for a person registered at a broker-dealer to lend money to a customer of
the broker-dealer with whom he has an outside business relationship, the loan:
a. Must be disclosed in advance and preapproved by the firm
b. Must be disclosed in advance
c. May be made without notice
, d. Is not permitted - CORRECT ANSWER a. Must be disclosed in advance and
preapproved by the firm
Which of the following organizations provides clearing services for equity
securities?
a. The National Securities Clearing Corporation (NSCC)
b. The Fixed Income Clearing Corporation (FICC)
c. The Options Clearing Corporation (OCC)
d. A transfer agent - CORRECT ANSWER a. The National Securities Clearing
Corporation (NSCC)
A type of offering in which the offering is cancelled if the entire amount of the
shares is not sold is:
A. A firm-commitment underwriting
B. A best-efforts underwriting
C. An all-or-none underwriting
D. A standby underwriting - CORRECT ANSWER C. An all-or-none underwriting
A stock that generally trades at a price that's lower than its fundamentals would
indicate is referred to as a:
A. Cyclical stock
B. Defensive stock
C. Growth stock
D. Value stock - CORRECT ANSWER D. Value stock
If a client places an open (GTC) order for a stock listed on the NYSE, it will:
A. Be cancelled at the end of the day if it is not executed
B. Be cancelled if it is not executed at that day's opening price
C. Be cancelled if it is not executed within one week of being entered
D. Remain active until executed or cancelled, but must be renewed according to
exchange rules - CORRECT ANSWER D. Remain active until executed or cancelled,
but must be renewed according to exchange rules
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