Valid SIE Exam Tutorial & Free Download Reliable SIE Test Dumps: Securities Industry Essentials Exam (SIE)
Valid SIE Exam Tutorial & Free Download Reliable SIE Test Dumps: Securities Industry Essentials Exam (SIE)
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Tags: SIE Exam Tutorial, Reliable SIE Test Dumps, Exam SIE Questions Pdf, Latest SIE Braindumps Files, SIE Latest Real Test
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Reliable FINRA SIE Test Dumps, Exam SIE Questions Pdf
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FINRA SIE Exam Syllabus Topics:
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FINRA Securities Industry Essentials Exam (SIE) Sample Questions (Q102-Q107):
NEW QUESTION # 102
Which of the following statements best describes a characteristic of 529 savings plan accounts?
- A. Earnings are taxed to the donor at the time of a qualified withdrawal.
- B. Using funds for undergraduate or graduate studies is permissible.
- C. There are no contribution limits to the account.
- D. The number of contributors to the account is limited.
Answer: B
Explanation:
Step by Step Explanation:
* 529 Savings Plans: These plans allow tax-advantaged savings for education expenses. They can be used for both undergraduate and graduate studies, as well as certain K-12 expenses.
* Contribution Limits: Contributions are subject to gift tax limits but have no specific statutory maximum under federal law.
* Tax Treatment: Earnings grow tax-deferred and are tax-free if used for qualified education expenses.
References:
* IRS Section 529 Guidance: IRS 529 Plans.
NEW QUESTION # 103
A registered representative (RR) opens a new account for a customer whose investment objectives are growth and income. She makes an initial deposit of $5,500 using a series of money orders drawn from different sources, and she makes no investments for the first 30 days the account is open. At the end of that time, the customer asks to have the funds wired to an account at a different firm as her needs have changed. The RR's first course of action should be to:
- A. Freeze the account.
- B. Deny the request.
- C. Report internally as a suspicious activity.
- D. Accept the instructions and wire the funds.
Answer: C
Explanation:
Step by Step Explanation:
* Suspicious Activity: The use of multiple money orders, lack of investment activity, and request to wire funds to another firm raise red flags for potential money laundering.
* FINRA Rules: The RR should escalate the issue by reporting internally and potentially filing a Suspicious Activity Report (SAR).
* Incorrect Options:
* A: Denying the request without investigation may violate customer instructions.
* B: Freezing the account requires a valid legal or regulatory basis.
* D: Processing the request without investigation could facilitate illegal activity.
References:
* FINRA Anti-Money Laundering (AML) Guidance: FINRA AML Rules.
NEW QUESTION # 104
Rising economic activity is most likely to increase revenues of which of the following sectors?
- A. Healthcare
- B. Consumer staples
- C. Consumer discretionary
- D. Utilities
Answer: C
Explanation:
Step by Step Explanation:
* Consumer Discretionary Sector: Includes products and services that are not essential, such as luxury items, travel, and entertainment. Revenues increase as disposable income rises during economic expansion.
* Consumer Staples and Utilities: These sectors are defensive and less impacted by economic cycles.
* Healthcare: Also less correlated with economic cycles due to its essential nature.
References:
* SEC and FINRA Guidance on Sectors: Investopedia Sector Overview.
NEW QUESTION # 105
Which of the following must a registered representative disclose as an outside business activity (OBA) on his Form U4?
- A. Board member serving without compensation for a not-for-profit entity
- B. Board member for a publicly traded company
- C. Volunteer work for a local charity
- D. Trustee on a grandparent's estate account
Answer: B
Explanation:
FINRA Rule 3270 requires registered representatives to disclose all outside business activities that involve compensation or could reasonably be perceived as a conflict of interest.
* C is correctbecause serving as a board member for a publicly traded company is a business activity requiring disclosure, even if compensation is indirect.
* Ais incorrect because volunteer work for charities does not require disclosure.
* Bis incorrect because acting as a trustee for a personal or family estate is generally not considered an OBA.
* Dis incorrect because unpaid board membership for a not-for-profit entity does not typically require disclosure.
NEW QUESTION # 106
Offering 403(b) tax-sheltered annuity accounts to which of the following groups is permissible?
- A. Active duty military personnel
- B. Employees of a nonprofit hospital
- C. Volunteer workers
- D. Small business owners
Answer: B
NEW QUESTION # 107
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