FINRA SIE Practice Test 2

1. What is the cost basis of securities received as an inheritance?

2. Which of the following securities are exempt from registration under the Securities Act of 1933?

3. __________ has the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as SROs.

4. Which of the following item(s) can affect an investor's risk tolerance?

5. Which of the following investments would not be considered appropriate for an investor with an objective of current income?

6. What is the tax advantage of owning municipal bonds?

7. _____________ is the process of buying investment vehicles that have a high degree of uncertainty regarding their future value and expected earnings.

8. Which of the following scenarios would be considered an unsuitable recommendation?

9. If a registered representative receives a customer complaint, what should he or she do first?

10. Which of the following investments would be most suitable for a young investor who can only invest a small amount each month?

11. A corporate bond would be least suitable for which of the following investors?

12. In a community property state, how are assets divided between a husband and wife in a divorce?

13. Which of the following documents may be used to give a third party trading authorization on an account?

14. Which of the following information is not required as part of the requirement to know your customer?

15. In response to which event was the USA PATRIOT Act created?

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