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SIE Practice Test 4 (2024) Questions With Complete Solutions!!
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SIE Practice Test 4 (2024) Questions With Complete Solutions!!
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Name: Score:85 Multiple choice questions
Term 1 of 85
All of the following are typically services provided in a prime brokerage account EXCEPT
Investment advice
Securities lending
Centralized trade settlement while still using multiple executing brokers
Calculating a total return on all investments
Term 2 of 85
The Depository Trust & Clearing Corporation's (DTCC's) Continuous Net Settlement (CNS) System
acts as central counterparty for clearance and settlement of broker-to-broker transactions in
most equity, corporate bond, and municipal bond transactions in the United States.
mostly equity securities transactions, with little or no involvement in corporate and
municipal debt transactions.
mostly corporate and municipal debt transactions, with little or no involvement in equity
securities transactions.
equity options only, with no involvement in other equity or debt transactions.
Term 3 of 85
Which of the following activities would not be done by a designated market maker on the floor of
an Exchange?
handling the execution of odd lot orders
recording open orders in the book
handling the distribution of new issues
trading for their own account
,Term 4 of 85
The calculation of the contingent deferred sales load upon the redemption of a mutual fund is
based on
the NAV at the time the fund shares are redeemed
the NAV at the time the fund shares were purchased
either the NAV at the time of purchase or the NAV at the time of redemption, whichever is
greater
a percentage of either the NAV at the time of purchase or the NAV at the time of
redemption, whichever is less, and generally the fee may not exceed 2%
Term 5 of 85
Broker-dealers charge their margin customers interest on the debit balances held in the
customers' margin accounts. What is the interest rate called that is the basis for margin rates
charged to customers?
The current federal funds rate
The current broker call rate
The discount rate established by the FED
The going prime rate found in the open market
Term 6 of 85
You are an RR and one of your clients informs you that they will now be participating in a pension
plan offered at work. The plan takes the average salary of the employee over the last three years
of service and pays 50% of that figure. Which of the following best describes this type of plan?
The client has an annuity plan that is tax-deferred.
The client has a defined contribution plan.
The client has a defined benefit plan.
The client has a deferred compensation plan.
, Term 7 of 85
All of the following documentation is required to open a customer margin account for the
president of a bank EXCEPT:
a new account report form
a margin agreement
a hypothecation agreement
authorization from the bank's board of directors
Term 8 of 85
Which of the following taxes would be deferred on contributions made by an individual to her
401(k) plan?
Unemployment tax at the Federal Level
Income tax
Medicare taxes
Real estate taxes
Term 9 of 85
A corporate bond called at 108 1/8 would pay the bondholder:
$1,084.50
$1,081.25 plus accrued interest
$1,081.25 minus accrued interest
$1,000 plus accrued interest of $1.25
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