FINRA SIE - Securities Industry Essentials Exam
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Total 85 questions
Question #6 (Topic: Exam A)
Under FINRA rules, which of the following loans is a registered representative permitted to accept if it is allowed by his firm?
A. A loan from a long-time customer
B. A loan from a high net worth customer
C. A loan from a customer that is an industrial corporation
D. A loan from a customer who was a long-time friend prior to becoming associated with the firm
Answer: D
Question #7 (Topic: Exam A)
What is the frequency of interest payments for a fixed coupon municipal bond?
A. Monthly
B. Quarterly
C. Semiannually
D. Annually
Answer: C
Question #8 (Topic: Exam A)
Under FINRA rules, a broker-dealer's (BD's) anti-money laundering (AML) program is required to fulfill which of the following requirements?
A. Provide for independent testing by the designated AML compliance officer
B. Obtain FINRA approval for the initial AML program and subsequent revisions
C. Establish and implement AML policies reasonably designed to achieve compliance with the Bank Secrecy Act (BSA)
D. Identify the BD's non-associated person responsible for implementing the day-to-day operations of the AML program
Answer: C
Question #9 (Topic: Exam A)
Which of the following responses describes a role or purpose of the SEC?
A. To fund FINRA and the MSRB
B. To regulate the activities of the IRS
C. To approve all new securities offerings
D. To protect investors against violations of securities laws
Answer: D
Question #10 (Topic: Exam A)
Which of the following responses describes a potential tax advantage of a publicly traded real estate investment trust (REIT)?
A. Distributions are federally tax-free for individual investors.
B. Tax on distributions are paid by the REIT and not by the investors.
C. Taxes on distributions are paid only by the investors and not by the REIT itself.
D. Dividends and interest are federally tax-deferred for individual investors, with no tax due until the sale of the shares.
Answer: C
