FINRA SIE Exam Latest Update -

FINRA SIE Exam Latest Update - Actual Exam from Credible Sources with 225 Questions and Verified Correct Answers Golden Ticket to Guaranteed A+ Verified by Professor

A 23-year-old recent college graduate has just inherited $28,000 from a family member.The recent graduate is a novice investor whose only exposure to the market consists of a few shares of a local utility company given as a gift 15 years ago. After seeking advice from a registered representative, the investor is unsure if the suggested 50% stock, 30% bond, 20% cash allocation is the right investment. Which investment should be made with the funds until the new investor decides?

A Place the funds in a taxable money market B Place the funds in a tax-free money market C Invest 25% of the money until the investor gets accustomed to the fluctuations of the market D Execute the original plan, since the investor is not knowledgeable enough to hold a valid

opinion - CORRECT ANSWER: A

Place the funds in a taxable money market

A bankers' acceptance is used for which of the following purposes?A To finance credit card receivables B To guarantee collateral used in creating an ADR

C 1 / 4

To facilitate the trading of foreign exchange D To finance a transaction between companies in two separate countries - CORRECT

ANSWER: D

To finance a transaction between companies in two separate countries

A broker-dealer holds client securities with the firm's securities. This practice is:

A Prohibited, unless approved by the customer B Acceptable, provided proper paperwork is kept C Prohibited and defined as commingling D

Acceptable when it only involves cash not securities - CORRECT ANSWER: C

Prohibited and defined as commingling

A broker-dealer must forward, to its customers, all financial reports and voter proxies related to securities held in customers' accounts. Is the broker-dealer allowed to charge for this service?

A The broker-dealer may charge customers for forwarding the voter proxies but not for delivery of financial reports B The broker-dealer may charge the customer for this service C The broker-dealer is not allowed to charge for this service

D 2 / 4

The broker-dealer may charge the issuer of these materials - CORRECT ANSWER: D

The broker-dealer may charge the issuer of these materials

A broker-dealer who buys and sells for its own account is acting as a(n):

A Agent B Syndicate C Underwriter D

Principal - CORRECT ANSWER: D

Principal

A client has $10,000 cash available in their cash account with XYZ broker-dealer. On Tuesday the client purchases $15,000 of ABC stock, intending on sending a payment of $5,000 by Thursday through an electronic funds transfer. On Wednesday, ABC stock has a sizable increase in price due to a rumor of a potential merger. The client decides to sell the shares of ABC stock for $20,000 on Wednesday. What violation has the client engaged in?

A Ghosting B Backing away C Freeriding D

Front running - CORRECT ANSWER: C

Freeriding 3 / 4

A client is considering saving money for their child's education. The client wants the money to grow on a tax-deferred basis but wants to retain the ability to use the investment for both private high school and college expenses. Which of the following options would be the best vehicle for this investor?

A Coverdell savings account B UGMA account C 403(b) plan D

Roth IRA - CORRECT ANSWER: A

Coverdell savings account

A client puts $1,000 a month into a variable annuity. The client is considering decreasing their monthly investments to a quarterly basis. At present, the client has $275,000 in the annuity and wants to start withdrawing the money upon retirement. What is the term used to describe the current holdings?

A Accumulation shares B Accumulation units C Annuity units D

Annuity shares - CORRECT ANSWER: B

Accumulation units

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