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This is a SIE Exam Lesson 7 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over.
SIE SIE Exam Lesson 7 Free Quiz
This is a SIE Exam Lesson 7 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over.
Questions covered include
Below are questions based on the previous lesson. Choose the letter of the correct answer.
To take the quiz online, click here.
1. The US government is not subject to the Securities Act of 1933.
A. True
B. False
2. Which of the following are non-callable?
A. treasury notes
B. treasury bonds
C. treasury bills
D. all of the above
3. A risk free investment guarantees a client to get back a dollar for every dollar he invests as long as he does it at par.
A. True
B. False
4. Which of the following is a risk-free investment?
A. Collateralized Mortgage Obligations
B. treasury bills
C. zero coupon bond
D. all of the above
5. Interest on direct US treasuries are exempted from ___.
A. federal taxation
B. state taxation
C. both federal taxation and state taxation
D. neither federal taxation nor state taxation
6. Which of the following is NOT a characteristic of US government bonds?
A. Their auctions are held every six months.
B. Their interest is paid semiannually.
C. They are callable.
D. They are the longest issued bonds.
7. Interest rates of Treasury Inflation Protected Securities are usually lower than treasury notes or treasury bonds because of the ___.
A. coupon rate
B. inflation protection
C. state taxation
D. all of the above
8. Which of the following is NOT a quasi-hybrid security?
A. Certificates of Accrual on Treasury Securities (CATS)
B. Separate Trading of Registered Interest and Principal Securities (STRIPS)
C. Treasury Income Growth Receipts (TIGERS)
D. All of the above are quasi-hybrid securities.
9. It is an independent federal agency created as a successor regulatory agency from the merger of the Federal Housing Finance Board, the Office of Federal Housing Enterprise Oversight and the US Department of Housing and Urban Development.
A. Federal Home Loan Agency
B. Federal Housing Finance Agency
C. Federal Intermediate Credit Agency
D. Federal Land Agency
SIE Exam Lesson 7 Free Quiz: Continued
10. The only US government agency obligation that carries the full faith and credit of the United States government
A. Farmers Housing Administration
B. Government National Mortgage Association
C. Small Business Administration
D. Student Loan Marketing Association
11. Which of the following is NOT guaranteed in a Ginnie Mae certificate?
A. duration of the investment
B. interest rate
C. principal
D. All of the above are guaranteed in a Ginnie Mae certificate.
12. Why does the investment value of a Collateralized Mortgage Obligation decline in a client’s statement?
A. The interest rate goes down making the investment value decrease.
B. The principal is adjusted based on the current inflation rate.
C. The reduction in the investment value is received by the client every month as part of the principal.
D. all of the above
13. Zero coupon bonds are created by the government.
A. True
B. False
14. These are government notes or government bonds whose interest payments are stripped out and then sold at a discount.
A. serial bonds
B. treasury bills
C. treasury bonds
D. zero coupon bonds
15. If a client owns a 20-year zero coupon treasury bond and interest rates go up, that bond in the secondary market will ___.
A. drop as much as a regular bond
B. drop significantly more than a regular bond
C. rise as much as a regular bond
D. rise significantly more than a regular bond
16. Which of the following is a characteristic of the Student Loan Marketing Association?
A. It issues normal debentures which are backed by its loans.
B. Interest is paid semi-annually on its bonds.
C. Its bonds are quoted in thirty-seconds.
D. all of the above
17. Agency debts trade in trade day plus three days.
A. True
B. False
18. Primary dealers buy small amounts of government bonds, notes, and bills directly from the government.
A. True
B. False
19. It is a pledge of collateral usually real estate to secure a loan at a fixed interest rate over the term of the loan.
A. asset
B. equity
C. mortgage
D. obligation
20. Which of the following is a risk in a Collateralized Mortgage Obligation?
A. interest rate risk
B. liquidity risk
C. prepayment risk
D. all of the above
We hope you did well on this SIE Exam Lesson 7 Free Quiz
Total Course 37 hours 10 Min
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
The full course details:
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
New Series 7 Exam and SIE Exam details.
All candidates now must now pass both the SIE exam (securities industry essentials exam) as well as the New Top-Off Series 7 Exam. A Series 7 candidate must also have an industry sponsor in order to take the examination to take the SIE Exam the candidate simply needs to be 18 years old and no broker affiliation is needed..
https://www.finra.org/industry/essentials-exam
- “Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
New Series 7 Exam
The New Series 7 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the four main job functions of a general securities representative. The table below lists the allocation of exam questions for each main job function.
Major Job Functions Percentage of Test Questions Number of Test Questions
(F1) Seeks Business for the Broker-Dealer from Customers and Potential Customers 7% 9
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 9% 11
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 73% 91
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 11% 14
TOTAL 100% 125”
The five job functions of the new Series 7 General Securities Representative Exam will be:
“Seeks business for the broker-dealer through customers and potential customers”
“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”
“Opens accounts, transfers assets and maintains appropriate account records”
“Provides customers with information on investments and makes suitable recommendations”
“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”
These five functions of the new series 7 exam are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”
https://www.finra.org/industry/series7
Here is a link to the table of Contents
Here is what my customers say about my audio lessons
Testimonials
—————————
New Series 7 Exam and SIE Exam details.
FINRA has announced major changes to the Series 7 Exam effective October 1, 2018. With the introduction of the Securities Industries Essentials Exam (SIE Exam) the new series 7 has been pared down to 125 questions from its original 250 questions.
https://www.finra.org/industry/series7
However there is now a prerequisite before taking the new Series 7 Exam all candidates now must have passed the SIE exam (securities industry essentials exam). In addition thing a series 7 candidate must also have an industry sponsor in order to take the examination.
https://www.finra.org/industry/essentials-exam
“Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
Outline of SIE Exam:
https://www.finra.org/sites/default/files/SIE%20Outline-01.12.18.pdf
https://www.finra.org/industry/series7
https://www.finra.org/sites/default/files/Series_7_Content_Outline.pdf