Updated Apr-2025 Pass SIE Exam – Real Practice Test Questions [Q15-Q30] – IT Certification Exam Questions & Answers

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Updated Apr-2025 Pass SIE Exam – Real Practice Test Questions

Download Free FINRA SIE Real Exam Questions

Q15. Which of the following statements best describes a characteristic of 529 savings plan accounts?

There are no contribution limits to the account.

The number of contributors to the account is limited.

Using funds for undergraduate or graduate studies is permissible.

Earnings are taxed to the donor at the time of a qualified withdrawal.

Q16. A customer purchased $80,000 of Fund XYZ two years ago. He now wants to buy $50,000 of Fund LMN offered within the same fund family, which offers a $100,000 breakpoint under right of accumulation. Which of the following statements is true?

The additional investment qualifies for a $100,000 breakpoint.

Each fund requires contributions of $100,000 to qualify for a breakpoint.

The customer must sign a new letter of intent to receive the $100,000 breakpoint on the additional purchase.

The customer will receive a sales charge discount on his next purchase after the account balance of the fund reaches $100,000.

Q17. Which of the following statements is true about a corporation’s balance sheet?

It is also called a profit and loss statement.

It summarizes a company’s revenues and expenses for the firm’s fiscal year.

It lists a company’s assets, liabilities, and net worth on the date the statement was prepared.

It reports where a corporation’s cash is being generated and where its cash is being spent for a specific period.

Q18. Which of the following statements is true regarding the SEC’s characterization of a registration statement that has just been made effective?

The SEC has approved the security being offered for sale.

The SEC has found the information presented to be true and accurate.

The SEC has determined that no material information has been omitted.

The SEC has not passed judgment on the merits of the security being offered for sale.

Q19. Which of the following is considered nonpublic information?

Customer’s name

Customer’s address

Customer’s net worth

Customer’s telephone number

Q20. A municipal securities dealer makes a political contribution of $990 to a local mayoral candidate. At the end of the quarter, to whom, if anyone, must the dealer report the contribution?

SEC

MSRB

FINRA

No disclosure required as the amount is below the reporting threshold

Q21. Which of the following statements best describes an American Depositary Receipt (ADR)?

ADRs trade like U.S. issues and are quoted in U.S. dollars.

ADRs trade like U.S. issues and are quoted in foreign currency.

ADRs represent shares of a U.S. security held in foreign commercial banks.

ADRs represent shares of a foreign security held in foreign commercial banks.

Q22. Which of the following rates is the interest rate at which banks borrow and lend to each other on an overnight basis?

Prime rate

Discount rate

Federal funds rate

LIBOR

Q23. Which of the following types of accounts permits an investor to borrow money from a broker-dealer to help pay for a trade?

Cash

Margin

An individual retirement account (IRA)

Delivery versus payment (DVP) / receive versus payment (RVP)

Q24. The financial risk that a given security is not readily tradable in the market without impacting the market price is known as:

Credit risk

Market risk

Liquidity risk

Prepayment risk

Q25. Which of the following is the primary risk of using asset allocation models without periodic rebalancing?

Inflation

Marketability

Overweighting

Interest rate risk

Q26. When exercised, an option written on which of the following items must be settled in cash?

Equity index

Preferred stock

Master limited partnership

Exchange-traded funds (ETFs)

Q27. A customer purchases 100 shares of stock on Thursday, August 2. This transaction must settle regular way no later than:

Friday, August 3

Monday, August 6

Tuesday, August 7

Wednesday, August 8

Q28. Rising economic activity is most likely to increase revenues of which of the following sectors?

Utilities

Healthcare

Consumer staples

Consumer discretionary

Q29. A registered representative (RR) owns 500 shares of a thinly traded security. A customer of the firm calls the RR to place a sell order for 10,000 shares of the same security. The RR sells his shares before entering the customer’s order to sell. Which of the following activities has the RR just engaged in?

Selling away

Front running

Insider trading

Market manipulation

Q30. The process in which the buying firm must pay for the securities and the selling firm must deliver the securities is known as:

A corporate action

Clearing the trade

The settlement of the transaction

A delivery versus payment (DVP) transaction