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Securities Industry Essentials Exam (SIE)

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Total Questions : 408

Dive into our fully updated and stable SIE practice test platform, featuring all the latest General Securities Representative exam questions added this week. Our preparation tool is more than just a FINRA study aid; it's a strategic advantage.

Our free General Securities Representative practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about SIE. Use this test to pinpoint which areas you need to focus your study on.

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Question # 51

When must a firm disclose its business continuity plan?

Options:

A.  

At account opening

B.  

During a business disruption

C.  

Within 60 days of account opening

D.  

Only upon request from a customer

Discussion 0
Question # 52

The primary function of a mutual fund custodian is to:

Options:

A.  

manage the fund ' s investments.

B.  

buy and sell securities for the fund.

C.  

hold the fund ' s cash and securities.

D.  

act as transfer agent for the fund shares.

Discussion 0
Question # 53

At which of the following prices does a 7% coupon bond have the highest current yield?

Options:

A.  

92

B.  

100

C.  

102

D.  

107

Discussion 0
Question # 54

A customer fails to make a timely payment for a substantial purchase in a cash account. Federal Reserve Regulation T requires that, in the absence of an extension, the firm must take which of following actions?

Options:

A.  

Close the account

B.  

Sell the stock and freeze the account for 90 days

C.  

Give the customer a first warning of late payment

D.  

Establish a margin account and journal the transaction to it

Discussion 0
Question # 55

A customer deposits an $8,000 cashier ' s check in their account. Later the same day, they deposit a $2,500 money order. Which of the following actions, if any, must the firm take in response to this activity?

Options:

A.  

No filing required

B.  

File Form W-9 with the IRS

C.  

File a Suspicious Activity Report (SAR)

D.  

File a Currency Transaction Report (CTR)

Discussion 0
Question # 56

Which of the following statements is true regarding American Depositary Receipts?

Options:

A.  

American Depositary Receipts pay dividends in U.S. dollars.

B.  

American Depositary Receipts are not subject to political risk.

C.  

American Depositary Receipts are not subject to currency fluctuations.

D.  

American Depositary Receipts offer a one-for-one conversion from U.S. shares to foreign shares.

Discussion 0
Question # 57

Which of the following securities has the greatest investment risk?

Options:

A.  

Blue chip stocks

B.  

Corporate bonds

C.  

Technology stocks

D.  

Government bonds

Discussion 0
Question # 58

When making a mutual fund recommendation to a customer, a registered representative must consider all of the following factors except:

Options:

A.  

the age of the customer.

B.  

the tax status of the customer.

C.  

the fund’s independent ranking

D.  

the investment objective of the fund.

Discussion 0
Question # 59

Under FINRA rules, which of the following events will prevent an individual from being eligible to register with a member firm?

Options:

A.  

Credit score below 500

B.  

Previous bankruptcy filing

C.  

False statements on their Form U4

D.  

More than 10 customer complaints

Discussion 0
Question # 60

Which of the following functions is generally associated with an introducing broker-dealer?

Options:

A.  

Accepting customer orders

B.  

Maintaining custody of customer accounts

C.  

Helping to ensure that trades are settled appropriately

D.  

Operating under a higher net capital requirement than clearing brokers

Discussion 0
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