SIE Exam Question 14: Answer and Explanation

Question: 14

What is the limit of SIPC protection if a brokerage firm fails?

• A. $100,000
• B. $250,000
• C. $500,000
• D. $1,000,000

Correct Answer: C

Explanation:

SIPC protects the securities and cash in a brokerage account up to $500,000 if a brokerage firm fails. The $500,000 protection includes up to $250,000 in cash in the brokerage account.