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SIE Practice Questions (301-350 out of 719) Questions With Correct Answers!!
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SIE Practice Questions (301-350 out of 719) Questions With Correct Answers!!
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Name: Score:104 Multiple choice questions
Term 1 of 104
All of the following statements concerning the taxation of capital gains upon liquidation of mutual
fund shares are correct EXCEPT:
A taxpayer can offset a short-term loss against a short-term gain
For net long-term gains on assets held longer than 12 months, the maximum tax rate is 15%
or 20%
A taxpayer can offset a net long-term gain against a net short-term loss
A taxpayer cannot offset a net short-term gain against a net long-term loss, but may carry
over the loss
Term 2 of 104
Under FINRA Rules, who can buy shares of an IPO?
A broker-dealer who is not part of the underwriting group
A mutual fund portfolio manager buying for the fund portfolio
A registered representative who works for a firm that is not in the underwriting group
The sister-in-law of a representative whose firm is in the underwriting group
,Term 3 of 104
Each year, the municipal broker-dealers and municipal advisors must deliver a statement to their
customers containing instructions on how to access a copy of an investor brochure on the MSRB's
website. The investor brochure describes:
How to file a customer complaint
The risks associated with a wide range of investment products
The Uniform Practice Code
The tax advantages of municipal securities
Term 4 of 104
Eurodollars are:
European currencies held on deposit in the branches of domestic banks located in the US
European currencies held on deposit in offshore branches of US banks
US dollar deposits held in foreign branches of US banks or foreign banks
US dollar deposits held in domestic branches of foreign banks
Term 5 of 104
General obligation (GO) bonds are:
Secured bonds backed by the full faith and credit of the municipality
Unsecured bonds backed by taxpayers
Bonds that pay higher interest rates than revenue bonds
Used to fund specific projects and paid for by revenue stream generated by the project
,Term 6 of 104
Which statement is true regarding the mutual fund LOI:
The LOI can be backdated a maximum 30 days and can cover a maximum time period of 12
months
The LOI can be backdated a maximum 30 days and can cover a maximum time period of 13
months
The LOI can be backdated a maximum 90 days and can cover a maximum time period of 12
months
The LOI can be backdated a maximum 90 days and can cover a maximum time period of 13
months
Term 7 of 104
When a broker-dealer or associated person makes a recommendation to a retail customer, it must
disclose all the material facts about the terms and relationship between the firm and the
customer:
Within 24 hours after the recommendation is made
In writing
Only if the customer is a new customer
Only if the customer decides to make a transaction based on the recommendation
Term 8 of 104
An income fund would likely invest in all of the following securities EXCEPT:
Debentures
STRIPS
Preferred Stock
High Yield Bonds
, Term 9 of 104
Which statement is TRUE about HSAs?
HSAs have a @2,500 maximum annual contribution
HSAs have the same contribution limits as IRAs
HSAs are funded with tax-deductible contributions
HSAs are funded with non tax-deductible contributions
Term 10 of 104
Regulation T applies to transactions in all of the following securities EXCEPT:
Corporate bonds traded OTC
Munis traded OTC
Common stocks traded on exchanges
Preferred stocks traded OTC
Term 11 of 104
Prepayment risk refers to the risk that:
Homeowners will refinance their mortgages at a lower interest rate
MBS holders have an unpredictable and volatile reinvestment risk
Future cash flows to MBS holders will be reduced
All of the other choices
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