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This is a SIE Exam Lesson 6 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over.
SIE Exam Lesson 6 Free Quizz
This is a SIE Exam Lesson 6 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
1. Which of the following is the correct set of government bills in order of increasing length in which they are set?
A. bills, notes, bonds
B. notes, bonds, bills
C. bonds, notes, bills
D. All of the above government bills have equal duration in which they are set.
2. Which of the following is NOT a US government sponsored entity?
A. Fannie Mae
B. Freddie Mac
C. Ginnie Mae
D. Sallie Mac
3. A call feature is a compulsory redemption of the bond at a specific price.
A. True
B. False
4. A call protection period is _____.
A. a period of time which protects the bond holder from an increase in the interest rate
B. a period of time which protects the bond holder from a decrease in the dividend
C. a period of time which protects the bond holder from a call from the issuer
D. a period of time which protects the bond holder from a call from the transfer agent
5. It is best to quote a bond to a client in the most conservative yield.
A. True
B. False
6. It is the right of the bond holder to redeem the bond from the issuer on a specific date.
A. call feature
B. put feature
C. tending feature
D. refund feature
7. US treasury bonds are quoted in ___.
A. eighths
B. sixteenths
C. thirty-seconds
D. sixty-fourths
8. Corporate bonds are quoted in ___.
A. eighths
B. sixteenths
C. thirty-seconds
D. sixty-fourths
9. Bonds that trade flat are bonds without accrued interest.
A. True
B. False
10. Which of the following is a bond that trade flat?
A. defaulted bond
B. commercial paper
C. zero coupon bond
D. all of the above
SIE Exam Lesson 6 Free Quiz: Fixed Income pt. 2: Continued
11. A basis point is 10th of a percentage point.
A. True
B. False
12. In calculating the price of a serial bond, the following are needed EXCEPT ___.
A. call date
B. maturity date
C. settlement date
D. yield basis quote
13. In corporate bonds, in the event of dissolution, which of the following is the correct set of obligation in order of decreasing priority?
A. preferred stockholders secured creditors debentures unpaid wages, taxes, trade creditors
B. secured creditors preferred stockholders debentures unpaid wages, taxes, trade creditors
C. secured creditors unpaid wages, taxes, trade creditors debentures preferred stockholders
D. unpaid wages, taxes, trade creditors debentures secured creditors preferred stockholders
14. The Trust Indenture Act of 1939 includes which of the following?
A. the terms of the issuance of bond
B. specific protections for the bondholders
C. important information for the full disclosure of the terms of that bond offering
D. all of the above
15. All of the following are secured debts EXCEPT ___.
A. debentures
B. equipment trust certificates
C. mortgage bonds
D. All of the above are secured debts.
16. Which of the following is NOT a characteristic of a commercial paper?
A. It is registered in the Securities and Exchange Commission.
B. It is usually in very large denominations.
C. It is usually issued at a discount.
D. Its maturity does not exceed 270 days.
17. It gives the bond holder the option of converting his debt in common stock at a set conversion ratio.
A. collateral trust certificates
B. convertible corporate debt
C. direct paper
D. income bonds
18. Why would a bond be called by the issuer?
A. to convert the bond into common stock
B. to exchange the bond for another bond
C. to make interest payments tax deductible
D. to put a ceiling price on the bond if the interest rates go down
19. When the bond and stock are trading at equivalent values and there’s no theoretical reason for conversion or non-conversion, there is parity.
A. True
B. False
20. When stocks rise above parity, corporate treasures may force the conversion of the debt into equity by ___.
A. calling the bond
B. tending offer
C. refunding the bond
D. all of the above
We hope you did well on this SIE Exam Lesson 6 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