Free SIE Exam Practice Test 44

1. ____ Regulates new securities.

2. ____ Regulates existing securities.

3. If interest rates __________ following a bond issue, a sinking-fund provision will allow the issuing company to reduce the interest rate risk of its bonds as it replaces a portion of the existing debt with __________ bonds.

4. Which of the following refers to the inverse relationship between bond prices and an investor's required rate of return?

5. Which of the following describes the process in which an underwriter intervenes in the secondary market by placing a bid for securities at or below the offering price? The goal is to protect the price from dropping if there is a lack of initial interest for a new issue.

6. Which of the following is an internal meeting between the officials of an organization that will be issuing securities and members of the syndicate that will be distributing them? The meeting is held after the registration of a new security with the SEC, but before the registration's effective date.

7. The annual report on __________ provides a comprehensive overview of a company's business and financial condition and includes audited financial statements.

8. All but which of the following are types of municipal bonds?

9. Alex, age 70, has contributed $20,000 to a Roth IRA throughout his career. The account value is now $30,000. If Alex withdraws the entire amount, how much tax will he owe if he's in the 28% tax bracket?

10. During a recent recession, your client, Charles, purchased high- yield corporate bonds that now face minimal default risk. However, he's now concerned that the various corporations may decide to call their bonds. You tell Charles that corporations are likely to call their bonds when:

11. Which of the following is an electronic filing system that facilitates investment adviser registration, exempt reporting adviser filing, regulatory review, and the public disclosure information of registered investment adviser firms and individuals?

12. Which of the following acts established the policies and procedures commonly referred to as a "Chinese wall"?

13. Which of the following describes the relationship between a security's bid-ask spread and its liquidity?

14. Which of the following is a type of debt issued by a national government in a foreign currency in order to finance the issuing country's growth and development?

15. The two broad categories of defined contribution plans are: