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Securities Industry Essentials Exam (SIE)
- Exam Number/Code : SIE
- Exam Name : Securities Industry Essentials Exam (SIE)
- Questions and Answers : 213 Q&As
- Update Time: 2019-01-10
- Price:
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NEW QUESTION: 1
Which of the following statements about test reports are TRUE?
I. Test reports shall be approved by the test team.
II. Test reports shall give stakeholders information as basis for decisions.
III. Test reports shall summarize what happened through a period of testing.
IV. Test reports shall be approved by the development team, the test team and the customer.
V. Test reports shall include information about remaining risks.
A. II, III, IV
B. I, III, V
C. II, III, V
D. I, II, IV
Answer: C
NEW QUESTION: 2
On the FAS3xxx and FAS6xxx controllers, FCbased storage and SATAbased storage_____.
A. can be configured on the same storage controller, but must be configured on separate loops
B. cannot be configured on the same storage controller, but on active/active systems, SATA storage can be configured on one node and FC storage on the other node
C. can be configured on the same storage system, butsoftwarebased disk ownership must be enabled
D. can be configured on the same storage controller and mixed within the same loop
Answer: A
NEW QUESTION: 3
What rule file parses data to the output file?
A. PRS
B. DCT
C. CLS
D. PAT
Answer: A
NEW QUESTION: 4
Stu Pede is an agent with broker-dealer Cavalier. A customer calls with a request to establish a classic
IRA and asks for Stu's advice regarding where the money in the IRA should be invested. Stu suggests a
municipal bond fund, explaining to his client that the interest income earned on it will be tax-free at the
federal level, and some of it may even be tax-free at the state and local levels. Has Stu engaged in any
prohibited practices?
A. No. Although municipal bonds are not suitable investments for a classic IRA, Stu obviously didn't know
this and is merely guilty of stupidity.
B. Yes. Municipal bonds are not suitable investments for a classic IRA, and Stu can have his license
revoked or suspended.
C. Yes. Stu is an agent with a broker-dealer. He is not an investment adviser representative and is not
allowed to make recommendations regarding investments to the firm's clients.
D. No. Although Stu has given investment advice, it was solicited by the client, and Stu received no
additional compensation for the advice.
Answer: B
Explanation:
Yes. When Stu recommends an investment in municipal bonds for a classic IRA account, he
has made an unsuitable recommendation, which is a prohibited practice, and he can have his license
revoked or suspended. Municipal bonds are not suitable investments for a classic IRA because municipal
bonds pay interest that is at least free from federal taxation, so they offer a lower yield than fully taxable
bonds of similar risk. The money in a classic IRA grows tax-free anyway, so the client is getting a lower
yield with no benefit.