SIE Exam Online Practice Test 14

1. Which of the following statements is false regarding an upward-sloping yield curve?

A. It indicates that yields tend to increase with longer maturities.

B. The longer the time span until maturity, the greater potential for price volatility.

C. The longer the time span until maturity, the greater the risk for loss.

D. It indicates that short-term rates are higher than long-term rates.

2. What is the measure of bond price volatility that captures both price and reinvestment risks indicating how a bond will react to different interest rate environments?

6. An order to buy or sell a stock at the best available price when the order is placed is a __________ order.

A. An order to sell 100 shares of XYZ at the best price available

B. An order to sell 100 shares of XYZ (currently trading at $50) if the price drops to $45

C. An order to buy 100 shares of XYZ at the best price available

D. An order to buy 100 shares of XYZ at $40 or less

8. It is the responsibility of the _____________ to ensure that a customer receives the correct breakpoint.

A. Registered representative

C. Mutual fund company

A. Monday, January 5

B. Tuesday, January 6

C. Wednesday, January 7

D. Thursday, January 8

10. What is the maximum amount that may be contributed to a 529 plan in TY 2020?

11. What is the tax consequence to an individual who rolls over his 401(K) directly to a traditional IRA?

A. The amount that is rolled over is considered income and is subject to income taxes at the individual’s rate.

B. The amount that is rolled over is considered income and is subject to income taxes at the individual’s current rate. Plus, if the individual is under age 59 ?, he may be subject to a 10 percent penalty.

C. If the individual is under age 59 ½, he must pay a 10 percent penalty. Otherwise, there are no tax consequences.

D. None of the above. A direct rollover from a 401(K) to a traditional IRA is not a taxable event.

12. An individual who withdraws a lump sum from a qualified plan can avoid income taxes and penalties if the entire amount is rolled over into a traditional IRA within _______ days.

13. By what date must an individual take his first required minimum distribution (RMD)?

A. At any time in the year he turns 70.5

B. By April 15 in the year following the year he turns 70.5

C. By December 31 in the year he turns 70.5

D. On the date that he turns 70.5

14. What is the income limit for single individuals to contribute to a Roth IRA in TY 2020?

15. The price at which you can buy a security with a call is the ___________.

Net profit after taxes:	$18,000	Stockholder's Equity:	$170,000
Total revenues:	$615,000	Preferred dividends:	$5,000
Total assets:	$340,000	Number of common shares outstanding:	3,800
Current assets:	$280,000	Current liabilities:	$85,000
Earnings per share:	$4.75	Market price:	$49.50

Net profit after taxes:	$18,000	Stockholder's Equity:	$170,000
Total revenues:	$615,000	Preferred dividends:	$5,000
Total assets:	$340,000	Number of common shares outstanding:	3,800
Current assets:	$280,000	Current liabilities:	$85,000
Earnings per share:	$4.75	Market price:	$49.50

SIE Exam Online Practice Test 14

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