Podcast: Play in new window | Download (Duration: 10:36 — 4.3MB)
Subscribe: Apple Podcasts | RSS | Subscribe to Podcast
This is a SIE Exam Lesson 8 Free Quiz which is covering Municipal Debt. Try it and see how you do if you need help listen to the lesson over.
SIE SIE Exam Lesson 8 Free Quiz
This is a SIE Exam Lesson 8 Free Quiz which is covering Municipal Debt. 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. Which is NOT a characteristic of municipal bonds?
A. They are issued by the states, local government, and political subdivisions.
B. They are issued in fully registered or book-entry forms.
C. They do not obtain legal opinion when they are issued.
D. All of the above are characteristics of municipal bonds.
2. How are municipal bonds issued today?
A. They are issued as bearer bonds.
B. They are issued as serial bonds.
C. They are issued both as bearer bonds and serial bonds.
D. They are issued neither as bearer bonds nor serial bonds.
3. The interest on qualified municipal bonds are always exempted from federal tax.
A. True
B. False
4. It is done by a bond counsel who examines the issue to determine if the municipal bond is legally binding on the issuer and that the interest is exempt from federal tax under the current law.
A. constitutional limiting
B. feasibility study
C. legal opinion
D. trust indenture
5. A bond counsel giving a qualified legal opinion says that there may be problems with the issue of the municipal bond such as the exemption from federal tax.
A. True
B. False
6. Which of the following is a municipal bond?
A. moral obligation bond
B. special assessment bond
C. industrial development bond
D. all of the above
7. Which of the following does NOT secure a special tax bond?
A. ad valorem tax
B. cigarette tax
C. gasoline tax
D. liquor tax
8. The issuance of this bond is backed up by a revenue source (other than an ad valorem tax or property tax) and by the full faith and credit of the taxing authority.
A. double-barreled bond
B. general obligation bond
C. limited tax bond
D. Public Housing Authority bond
9. Short-term municipal notes have a life of less than twelve months up to three years.
A. True
B. False
10. These notes are issued at the end of the year and the taxes received at the beginning of the year will be used to pay off the issued notes.
A. grant anticipation notes
B. revenue anticipation notes
C. tax anticipation notes
D. tax exempt commercial paper
SIE Exam Lesson 8 Free Quiz: Municipal Debt: Continued
11. Step up or step down variable interest notes have interest rate that goes up or down and keeps the value of the bond basically at par.
A. True
B. False
12. Which of the following does NOT contribute to a state’s income?
A. income tax
B. real property tax
C. sales tax
D. All of the above contribute to a state’s income.
13. Which of the following is NOT a characteristic of a general obligation bond?
A. It carries the full faith and credit of the issuing municipality.
B. It carries the highest ratings and therefore the highest yield.
C. It is serviced by ad valorem taxes.
D. All of the above are characteristics of a general obligation bond.
14. Which of the following is NOT a revenue bond?
A. hospital bond
B. sewer bond
C. special assessment bond
D. water bond
15. These are used for the protection of the investor in the bonds.
A. deed covenant
B. nondiscrimination covenant
C. protective covenant
D. revenue pledge covenant
16. The element of a municipal bond that allows, but not obliges, the issuer to call the bonds usually after a certain date.
A. call feature
B. mandatory redemption provision
C. optional redemption provision
D. refund feature
17. Which insurance company insure municipal bond debt?
A. American Municipal Bond Assurance Corporation (AMBAC)
B. Financial Guarantee Insurance Corporation (FGIC)
C. Municipal Bond Insurance Association Corporation (MBIA)
D. all of the above
18. A negative carry happens when the interest rate on the money borrowed to buy municipal bonds is less than the interest rate earned.
A. True
B. False
19. When a municipality sets its ___, it cannot issue additional general obligation bonds except by the majority approval of a public referendum.
A. constitutional limit
B. municipal limit
C. state limit
D. statutory limit
20. In order to issue a revenue bond, this is conducted to see if the projected revenues, the cost of the project, and whether the projected revenues are going to be able pay off the debt that will be issued.
A. bond counseling
B. feasibility study
C. revenue anticipation
D. special assessment
We hope you did well on this SIE Exam Lesson 8 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