Online Access Free SIE Exam Questions

Which of the following costs associated with open-end mutual funds typically provides discounts for large- volume purchases?

• A.Front-end sales charge
• B.12b-1 fee
• C.Management fees
• D.Contingent deferred sales charge

Which of the following statements is true about a corporation ' s balance sheet?

• A.It is also called a profit and loss statement.
• B.It summarizes a company ' s revenues and expenses for the firm ' s fiscal year.
• C.It reports where a corporation ' s cash is being generated and where its cash is being spent for a specific period.
• D.It lists a company ' s assets, liabilities, and net worth on the date the statement was prepared.

An open-end mutual fund is best described as a type of investment company that pools money from multiple investors to purchase a portfolio of:

• A.cash equivalents and short-term debt instruments with end-of-day trading and pricing.
• B.diverse investments with intraday trading and pricing.
• C.diverse investments with end-of-day trading and pricing.
• D.illiquid investments with a set redemption schedule and a performance-based management fee.

Which of the following statements is true about a general obligation (GO) municipal bond?

• A.It carries no exemption from federal or state income taxes.
• B.It is payable solely from the revenues of the facility against which the bonds were issued.
• C.It does not carry an attached legal opinion.
• D.It is backed by the full faith and credit of the issuing jurisdiction.

A customer buys 100 ABC at $50 and at the same time sells an ABC April 50 call at $8. At expiration, ABC must be at what market price for the customer to break even?

• A.$42
• B.$50
• C.$58
• D.$44