FINRA SIE Practice Test 4

1. __________ are municipal bonds backed by the revenue-generating capacity of the issuer.

2. Which of the following statements is true regarding a downward-sloping yield curve?

3. If interest rates are expected to rise in the near future, which of the following statements is true regarding duration?

4.

What is the net profit margin?

5.

What is the P/E ratio?

6. What rating must a bond receive to be considered investment grade?

7. An order to buy a stock at specific price or better is what type of order?

8. A stop limit order to sell 100 shares of ABC Corporation (ABC) stock at $35 is entered when the current market price of ABC stock is $45. The company announces lower-than-expected earnings and the stock price falls dramatically. Under which of the following scenarios will the order not execute?

9. How often must customers receive account statements from a brokerage firm?

10. If an option expires without hitting its strike price, what happens to the buyer and seller?

11. What is the amount of the "catch-up" contribution to a traditional or Roth IRA that individuals aged 50 and over may make in 2020?

12. What is the tax consequence to an individual under the age of 59 ½ who withdraws a lump sum from his 401(k)?

13. Contributions made to a traditional or Roth IRA may consist of ___________.

14. What are the tax consequences to an individual who converts a traditional IRA into a Roth IRA?

15. What is the current yield of a 5 percent bond that is priced at 80?