SIE Understanding Products and Their Risks Practice Test 1

1. Which of the following is the main reason that a company issues stock?

2. Which of the following is considered a debt security?

3. A broker-dealer is required to be a member of which of the following organizations?

4. Which of the following satisfies an anti-dilution provision?

5. Which of the following is a method used by the U.S. government to implement fiscal policy to stimulate the economy?

6. Which of the following is a benefit of owning a Treasury zero-coupon bond?

7. Which of the following is an agency of the federal government?

8. Which of the following is an effect of municipal bond insurance?

9. Which of the following is true of an option?

10. Which of the following is a characteristic of an option that is traded over the counter?