SIE Practice Exam | 60 Questions with 100% Correct Answers

Document Content and Description Below

Which of the following statements is true regarding the concept of an annuity contract? a) Payouts of an investment in a nonqualified annuity are all income tax-free b) The kind of annuity selected ... partly determines the payment amounts to the annuitant c) In the case of life annuity contracts, the age and sex of the annuitant do not affect the payment amounts d) The amounts of the periodic payments to the annuitant are determined by the performance of the insurance company's investment returns - ✔✔b) The kind of annuity selected partly determines the payment amounts to the annuitant Which of the following Form U4 reportable events results in a statutory disqualification? a) A personal bankruptcy filing b) A written customer complaint alleging misappropriation of assets c) A felony theft charge d) A felony conviction for a driving under the influence (DUI) charge - ✔✔d) A felony conviction for a driving under the influence (DUI) charge Under SEC Regulation S-P (Consumer Privacy), which of the following information must a firm include in its customer privacy and opt-out notices? a) The addresses of the firm's website b) The fee and opt out from the privacy program c) The deadline by which to out from the privacy program d) The policies to protect the security of nonpublic information - ✔✔d) The policies to protect the security of nonpublic information Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid for what maximum period of time? a) 3 months b) 6 months c) 13 months d) 24 months - ✔✔c) 13 months No-load mutual funds may have lower expense than load mutual funds for which of the following reasons? a) No-load funds do not charge 12b-1 fees b) No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points c) Sales charges for load mutual funds increase their annual expense ratios d) Fund management fees for no-load funds are always lower than load funds - ✔✔b) No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points [Show More]

Last updated: 5 months ago

Preview 1 out of 11 pages