Free SIE Exam Practice Test 42

1. Which of the following has the mission of protecting investors, municipal entities, and the public interest by promoting a fair and efficient municipal market, regulating firms that engage in municipal securities and advisory activities, and promoting market transparency?

2. ____ Invests in loans secured by real estate.

3. ____ Self-liquidating, flow-through entity that invests in real estate mortgages or mortgage-backed securities.

4. ____ Acquires ownership interests in commercial, industrial, and residential properties. Income is received from the rental of these properties.

5. According to FINRA Rule 3240, which of the following is correct regarding borrowing and lending arrangements between a Registered Investment Advisor and its customers?

6. Which of the following investments will provide tax-exempt interest if the proceeds are used to pay for qualifying education expenses?

(1) FNMA funds

(2) Series EE bonds

(3) Treasury bonds

(4) Treasury bills

7. Which of the following type of bond is unregistered, with no record kept regarding the owner or transactions involving ownership?

8. Which of the following is/are correct regarding liquidity and marketability?

(1) Liquidity is the ability to sell or redeem an investment quickly and at a known price without incurring a significant loss of principal.

(2) Marketability is the speed and ease with which an investment may be bought or sold.

9. Which of the following are among the criteria to be an "accredited investor"?

10. All but which of the following are characteristics of American Depository Receipts (ADRs)?

11. Which of the following accurately describes the difference between rights and warrants?

(1) A warrant may be attached to new debt or preferred issues to make the issues more attractive to buyers.

(2) Rights and warrants have different lifespans.

(3) Warrants usually expire within a few weeks.

(4) Rights may continue without expiring for up to several years.

12. Which of the following is the governing body of FINRA, which oversees the administration of its affairs and the promotion of its welfare, objectives, and purposes?

13. Preferred stock that does not have to pay missed dividends is considered which of the following?

14. Which of the following rules permits the public resale of restricted or control securities if a number of conditions are met, including how long the securities are held, the way in which they are sold, and the amount that can be sold at any one time?

15. Which of the following is/are correct regarding a flat yield curve?

(1) It generally indicates an economic slowdown.

(2) It occurs when there is little difference between short-term and long-term yields for debt instruments of the same credit quality.

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