Finra SIE Exam Questions & Answers 2024 Latest Update!!
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Course
Finra SIE
Institution
Finra SIE
Exempt Securities from SEC Registration - ANSWER -securities listed by the U.S. or federal agencies
-Municipal Bonds
-Securities issued by banks, savings institutions and credit unions
-Public utility stocks or bonds
-Securities issued by religious, educational or nonprofit organizations
-Note...
Finra SIE Exam Questions & Answers
2024 Latest Update!!
Exempt Securities from SEC Registration - ANSWER -securities listed by the U.S. or
federal agencies
-Municipal Bonds
-Securities issued by banks, savings institutions and credit unions
-Public utility stocks or bonds
-Securities issued by religious, educational or nonprofit organizations
-Notes, bills of exchange, bankers acceptances and commercial paper with an initial
maturity of 270 days or less
-Insurance policies and fixed annuities
Exempt Transactions from SEC Registration - ANSWER -Intrastate offerings (required
at state level)
-Regulation A offerings (<$5m within 12 mo. period)
-Regulation D offerings (aka private placement) (no more than 35 unaccredited
investors per year)
T-Bills - ANSWER Maturity: 4-52 weeks
Issued at a discount and matures at par. Difference between purchase price and par is
considered interest.
T-Notes - ANSWER Maturity: 2-10 years
Pays interest semi-annually
Considered Intermediate
T-Bonds - ANSWER Maturity: 30 years
Pay interest semi-annually
T-STRIPS - ANSWER Maturity: 6 months to 30 years
Issued at a discount and mature at par
TIPS - ANSWER Maturity: 5,10,30 years
Pay interest semi-annually, par value and interest payments adjust according to
inflation.
GNMA - ANSWER (Government National Mortgage Association)
-Only agency security backed by govt.
-Support the Department of housing and urban development
FNMA - ANSWER (Federal National Mortgage Association)
-Publicly held corporation, responsible for providing capital for certain mortgages.
-Conventional, VA, FHA, etc.
, FHLMC - ANSWER (Freddie Mac)
-Designed to create a secondary market for mortgages.
-Purchases residential mortgages and packages them into mortgage-backed securities
that are sold to investors
Moral Obligation Bonds - ANSWER -backed by pledge of state govt to pay off debt if the
municipality cant
Municipal Bonds from safest to riskiest - ANSWER 1. Public Housing Authority Bonds
2.Moral obligation
3.Revenue
4. IDR
Tax Credit BABs - ANSWER Receive tax credits equal to 35 percent of the coupon rate
Direct Payment BABs - ANSWER -Municipality receives 35% reimbursement from US
treasury when issued
-Higher coupon rate than tax credit BABs
Tax Anticipation Notes (TANs) - ANSWER Provide financing for current operations in
anticipation of future taxes that the municipality will collect
Revenue Anticipation Notes (RANs) - ANSWER Provide financing for current operations
in anticipation of future revenues that the municipality will collect
Tax and Revenue Anticipation Notes (TRANs) - ANSWER combination of TANs and
RANs
Bond Anticipation Notes (BANs) - ANSWER provide interim financing for the
municipality for the while its waiting for long-term bonds to be issued
Construction Loan Notes (CLNs) - ANSWER construction of multi-family apartment
buildings
Project notes (PNs) - ANSWER building of subsidized housing for low-income families
Tax-Exempt Commercial Paper - ANSWER issued by organizations, like universities
with permission of the government.
-used to cover short-term liabilities
Section 529 Plans - ANSWER -Education savings plans
-contribution allowance varies state to state
-made from AFTER tax dollars
-withdrawals are not taxed
-no income limits
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