All SIE Test Inside FINRA Questions

Form U4 (Uniform Application for Securities Industry Registration or Transfer) requires disclosure of any felony convictions, regardless of whether they are securities-related. A felony conviction for drunk driving falls under this requirement.

B is correctbecause a felony conviction must be reported on Form U4.

Ais incorrect as misdemeanor speeding tickets do not require disclosure unless they involve fraud, theft, or dishonesty.

Cis incorrect as bench warrants are not reportable unless they lead to a conviction.

Dis incorrect because gross misdemeanors (except those involving fraud or dishonesty) do not require reporting.

The Options Clearing Corporation (OCC) is responsible for issuing and guaranteeing the performance of listed options contracts, including Long-term Equity Anticipation Securities (LEAPS), which are long-term options.

D is correctbecause LEAPS are a type of listed options contract cleared by the OCC.

Ais incorrect because listed stocks are not options contracts.

Bis incorrect because over-the-counter bonds are not cleared by the OCC.

Cis incorrect because ETFs are not options, though ETF options may be cleared by the OCC.

Regulation S-P mandates that broker-dealers disclose how they collect, protect, and share customers’ nonpublic personal information. The privacy notice must include:

The categories of information collected.

The firm’s policies for safeguarding data.

Opt-out rights for sharing information with unaffiliated third parties.

D is correctbecause privacy notices must describe policies for protecting customer information.

A,B, andCare incorrect because they do not relate to the required elements of Regulation S-P privacy notices.

The federal funds rate, which is the interest rate banks charge each other for overnight loans, changes frequently due to daily fluctuations in bank reserves and market conditions.

D is correctas it is the most sensitive to short-term market forces.

A,B, andCchange less frequently.