FINRA SIE Exam Questions

Question 6 of 85

Under FINRA rules, which of the following loans is a registered representative permitted to accept if it is allowed by his firm?

A loan from a long-time customer

A loan from a high net worth customer

A loan from a customer that is an industrial corporation

A loan from a customer who was a long-time friend prior to becoming associated with the firm

Correct Answer: D

Question 7 of 85

What is the frequency of interest payments for a fixed coupon municipal bond?

Monthly

Quarterly

Semiannually

Annually

Correct Answer: C

Question 8 of 85

Under FINRA rules, a broker-dealer's (BD's) anti-money laundering (AML) program is required to fulfill which of the following requirements?

Provide for independent testing by the designated AML compliance officer

Obtain FINRA approval for the initial AML program and subsequent revisions

Establish and implement AML policies reasonably designed to achieve compliance with the Bank Secrecy Act (BSA)

Identify the BD's non-associated person responsible for implementing the day-to-day operations of the AML program

Correct Answer: C

Question 9 of 85

Which of the following responses describes a role or purpose of the SEC?

To fund FINRA and the MSRB

To regulate the activities of the IRS

To approve all new securities offerings

To protect investors against violations of securities laws

Correct Answer: D

Question 10 of 85

Which of the following responses describes a potential tax advantage of a publicly traded real estate investment trust (REIT)?

Distributions are federally tax-free for individual investors.

Tax on distributions are paid by the REIT and not by the investors.

Taxes on distributions are paid only by the investors and not by the REIT itself.

Dividends and interest are federally tax-deferred for individual investors, with no tax due until the sale of the shares.

Correct Answer: C