Securities Industry Essentials Exam

member firms who act as securities "dealers" must maintain minimum net capital of?

$100,000

for a clearing broker-dealer, what is the minimum required net capital?

$250,000

for an introducing broker-dealer, the required minimum net capital is which of the following, depending on their activities?

$5,000;$50,000

Carrying on clearing members are not allowed to expand their business operations if their net capital is deficient for?

15 consecutive business days

which of the folowing is not required to be registered with the SEC?

A Rule 147 Transaction offered exclusively in the issuer's State to investors in the state

In an IPO, often both the issuing company and the early investors offer shares to the public for the first time. this is known as?

A combined offering

Securities exempt from the Securities Act of 1933's registration requirements include which of the following?

A municipal bond issued by a US State, a municipal issued by a county or city of the united states, a bond issued by a charitable or fraternal organization

which of the following holds customers assets, receives deposits of cash and securities, and processes withdrawals of cash securities?

Clearing Broker-Dealer

fiscal policy is enacted by?

Congress

of these two,the type of broker-dealer whose minimum net capital is $100000 is a?

Dealer

to which of the following do member broker-dealers remit payment for securities purchases?

Depository Trust Company

Monetary policy is enacted by?

Federal Reserve Board

Japanese nationals working temporarily at a toyota plant in alabama are counted towards? for the US

GDP

Japanese nationals working temporarily at a toyota plant in alabama are counted towards? for Japan

GNP

Which of the following is associated with the secondary-rather then the primary-market?

Market Maker

When an issuer files exclusively with the State Securities Department where it operates, the exemption claimed under the securities act of 1933 is referred to as?

Rule 147

in which of the following types of underwriting engagements does the syndicate act as a principal by taking on the obligation to pay for any unsold securities?

Standby

an offering of which of the following securities is required to be registered under the securities act of 1933?

a stock authorized for listing on NASDAQ

a graph showing the yields of debt securities of similar credit quality across various maturities is known as which of the following?

a yield curve

in a private placement effected through Regulation D, Which of the following is accurate?

accredited investor includes a married couple with $1 million of liquid assets

which of the following accurately describes a broker-dealer's responsibility to customers concerning financial condition?

all broker-dealer's, regardless of their activities,must provide a copy of their most recent balance sheet to any customer upon request.

When a public company completes an offer of common stock several years after the IPO, this is known as?

an additional primary distribution

The Securities Act of 1933?

applies exclusively to the primary market

A principal registered as a "FINOP" can supervise which of the following activities?

back office operations, preparation and maintenance

the issuer is required to file notice with the SEC when?

completing an exempt transaction

The Securities Exchange act of 1934?

covers broad aspects of the securities market

durable goods such as refrigerators and dishwashers represent A?

cyclical industry

inflation is thought to result under which of the following scenarios?

demand for goods and services exceeds supply

which of the following industry spaces is most likely "counter Cyclical" in nature?

employment placement services

when an issuer completes a private placement, they are required to do which of the following?

file a form D- notice of exempt offering of securities, if no ppm is to be used, file a report to FINRA of this fact

which of the following must maintain a minimum net capital of $25,000

firms who engage in the sale of redeemable shares of registered investment companies

when a nations ties its currency to a fixed weight of gold, we refer to this monetary system as which of the following?

fixed exchange rate

if yields for short term, intermediate-term, and long-term treasuries are the same, the yield curve is said to be?

flat

core inflation excludes?

food and energy

liabilities of a broker dealer to customers which are subject to immediate cash payment to customers on demand, whether resulting from sales of securities, dividends, interest,deposits, or otherwise are defined by FINRA as which of the following?

free credit balance

when calculating its net capital, a broker-dealer takes its tentative net capital and subtracts?

haircuts

to stimulate the American economy, Congress could?

increase spending

which of the following fiscal policy initiatives tend to stimulate a sluggish economy?

increase spending

in a private placement offered under Regulation D, a?

maximum of 35 non accredited purchases can purchase shares

The cooling off period for an offer of securities is a?

minimum of 20 days

A true statement of the cooling off period imposed under the securities act of 1933 is?

no final sales are made until the SEC grants the issuer a release date

securities are issued on the?

primary market

In a firm commitment underwriting, syndicate members act as a?

principal for the issuer

which of the following actions taken by the "Fed" would tend to stimulate a sluggish economy?

relaxing the reserve requirement

securities are traded on the?

secondary market

deflation is sought to occur when?

supply exceeds demand

Best efforts underwriting

the issuer will accept what the underwriters raise in a?

when the securities and exchange commission establishes the effective or release date for an offer of securities,investors can accurately conclude which of the following?

the securities are listed for trading on either the NYSE or NASDAQ

The FOMC is expected to sell US Treasuries on the secondary market when pursuing a?

tight monetary policy

An American holding an ADR in a Japanese company benefits when the US Dollar, relative to the Yen?

weakens