SIE Exam Lesson 8 Free Quiz: Municipal Debt

01/13/22 • 10 min

SIE Exam: Securities Industry Essentials Exam Lessons and Information

This is a SIE Exam Lesson 8 Free Quiz which is covering Municipal Debt. Try it and see how you do if you need help listen to the lesson over. SIE SIE Exam Lesson 8 Free Quiz This is a SIE Exam Lesson 8 Free Quiz which is covering Municipal Debt. Try it and see how you do if you need help listen to the lesson over. Questions covered include Below are questions based on the previous lesson. Choose the letter of the correct answer. To take the quiz online, click here. 1. Which is NOT a characteristic of municipal bonds? A. They are issued by the states, local government, and political subdivisions. B. They are issued in fully registered or book-entry forms. C. They do not obtain legal opinion when they are issued. D. All of the above are characteristics of municipal bonds. 2. How are municipal bonds issued today? A. They are issued as bearer bonds. B. They are issued as serial bonds. C. They are issued both as bearer bonds and serial bonds. D. They are issued neither as bearer bonds nor serial bonds. 3. The interest on qualified municipal bonds are always exempted from federal tax. A. True B. False 4. It is done by a bond counsel who examines the issue to determine if the municipal bond is legally binding on the issuer and that the interest is exempt from federal tax under the current law. A. constitutional limiting B. feasibility study C. legal opinion D. trust indenture 5. A bond counsel giving a qualified legal opinion says that there may be problems with the issue of the municipal bond such as the exemption from federal tax. A. True B. False 6. Which of the following is a municipal bond? A. moral obligation bond B. special assessment bond C. industrial development bond D. all of the above 7. Which of the following does NOT secure a special tax bond? A. ad valorem tax B. cigarette tax C. gasoline tax D. liquor tax 8. The issuance of this bond is backed up by a revenue source (other than an ad valorem tax or property tax) and by the full faith and credit of the taxing authority. A. double-barreled bond B. general obligation bond C. limited tax bond D. Public Housing Authority bond 9. Short-term municipal notes have a life of less than twelve months up to three years. A. True B. False 10. These notes are issued at the end of the year and the taxes received at the beginning of the year will be used to pay off the issued notes. A. grant anticipation notes B. revenue anticipation notes C. tax anticipation notes D. tax exempt commercial paper SIE Exam Lesson 8 Free Quiz: Municipal Debt: Continued 11. Step up or step down variable interest notes have interest rate that goes up or down and keeps the value of the bond basically at par. A. True B. False 12. Which of the following does NOT contribute to a state’s income? A. income tax B. real property tax C. sales tax D. All of the above contribute to a state’s income. 13. Which of the following is NOT a characteristic of a general obligation bond? A. It carries the full faith and credit of the issuing municipality. B. It carries the highest ratings and therefore the highest yield. C. It is serviced by ad valorem taxes. D. All of the above are characteristics of a general obligation bond. 14. Which of the following is NOT a revenue bond? A. hospital bond B. sewer bond C. special assessment bond D. water bond 15. These are used for the protection of the investor in the bonds. A. deed covenant B. nondiscrimination covenant C. protective covenant D. revenue pledge covenant 16. The element of a municipal bond that allows, but not obliges, the issuer to call the bonds usually after a certain date. A. call feature B. mandatory redemption provision C. optional redemption provision D. refund feature 17. Which insurance company insure municipal bond debt? A. American Municipal Bond Assurance Corporation (AMBAC) B. Financial Guarantee Insurance Corporation (FGIC) C.

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SIE Exam Lesson 7 Free Quiz: Fixed Income pt. 3

This is a SIE Exam Lesson 7 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over. SIE SIE Exam Lesson 7 Free Quiz This is a SIE Exam Lesson 7 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over. Questions covered include Below are questions based on the previous lesson. Choose the letter of the correct answer. To take the quiz online, click here. 1. The US government is not subject to the Securities Act of 1933. A. True B. False 2. Which of the following are non-callable? A. treasury notes B. treasury bonds C. treasury bills D. all of the above 3. A risk free investment guarantees a client to get back a dollar for every dollar he invests as long as he does it at par. A. True B. False 4. Which of the following is a risk-free investment? A. Collateralized Mortgage Obligations B. treasury bills C. zero coupon bond D. all of the above 5. Interest on direct US treasuries are exempted from ___. A. federal taxation B. state taxation C. both federal taxation and state taxation D. neither federal taxation nor state taxation 6. Which of the following is NOT a characteristic of US government bonds? A. Their auctions are held every six months. B. Their interest is paid semiannually. C. They are callable. D. They are the longest issued bonds. 7. Interest rates of Treasury Inflation Protected Securities are usually lower than treasury notes or treasury bonds because of the ___. A. coupon rate B. inflation protection C. state taxation D. all of the above 8. Which of the following is NOT a quasi-hybrid security? A. Certificates of Accrual on Treasury Securities (CATS) B. Separate Trading of Registered Interest and Principal Securities (STRIPS) C. Treasury Income Growth Receipts (TIGERS) D. All of the above are quasi-hybrid securities. 9. It is an independent federal agency created as a successor regulatory agency from the merger of the Federal Housing Finance Board, the Office of Federal Housing Enterprise Oversight and the US Department of Housing and Urban Development. A. Federal Home Loan Agency B. Federal Housing Finance Agency C. Federal Intermediate Credit Agency D. Federal Land Agency SIE Exam Lesson 7 Free Quiz: Continued 10. The only US government agency obligation that carries the full faith and credit of the United States government A. Farmers Housing Administration B. Government National Mortgage Association C. Small Business Administration D. Student Loan Marketing Association 11. Which of the following is NOT guaranteed in a Ginnie Mae certificate? A. duration of the investment B. interest rate C. principal D. All of the above are guaranteed in a Ginnie Mae certificate. 12. Why does the investment value of a Collateralized Mortgage Obligation decline in a client’s statement? A. The interest rate goes down making the investment value decrease. B. The principal is adjusted based on the current inflation rate. C. The reduction in the investment value is received by the client every month as part of the principal. D. all of the above 13. Zero coupon bonds are created by the government. A. True B. False 14. These are government notes or government bonds whose interest payments are stripped out and then sold at a discount. A. serial bonds B. treasury bills C. treasury bonds D. zero coupon bonds 15. If a client owns a 20-year zero coupon treasury bond and interest rates go up, that bond in the secondary market will ___. A. drop as much as a regular bond B. drop significantly more than a regular bond C. rise as much as a regular bond D. rise significantly more than a regular bond 16. Which of the following is a characteristic of the Student Loan Marketing Association? A. It issues normal debentures which are backed by its loans. B. Interest is paid semi-annually on its bonds. C.

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SIE Exam Lesson 9 Free Quiz: Money Market

This is a SIE Exam Lesson 9 Free Quiz which is covering Money Market. Try it and see how you do if you need help listen to the lesson over. SIE SIE Exam Lesson 9 Free Quiz This is a SIE Exam Lesson 9 Free Quiz which is covering Money Market. Try it and see how you do if you need help listen to the lesson over. Questions covered include Below are questions based on the previous lesson. Choose the letter of the correct answer. To take the quiz online, click here. 1. Which of the following is an example of a money market instrument? A. treasury bills B. commercial paper C. banker’s acceptance D. all of the above 2. Money market instruments mature in ___. A. one year or less B. two years C. five years D. ten years or more 3. This is the only type of banker’s acceptance that the Federal Reserve buys. A. premium banker’s acceptance B. primary banker’s acceptance C. prime banker’s acceptance D. The Federal Reserve does not accept banker’s acceptance. 4. The price of repurchasing a security include a yield. A. True B. False 5. A reverse repurchase agreement is an agreement between two parties where one party agrees to sell a block of securities to another party with the agreement that those securities will be repurchased at a later date at a specific price. A. True B. False 6. The shortest repurchase agreement is ___. A. twelve hours B. overnight C. two days D. five days 7. Which is NOT a characteristic of a repurchase agreement? A. It has a liquidity risk. B. It has a purchasing power risk. C. Its interest rate can change overnight. D. Its interest rates are very low. 8. The reverse repurchase agreement is used primarily by the ___. A. Federal Reserve B. government agencies C. secondary market D. all of the above 9. A reverse repurchase agreement is also called a matched sale. A. True B. False 10. The Federal Reserve is owned by the government. A. True B. False 11. Which of the following does the President of the United States have authority to appoint in the Federal Reserve Board? A. chairman B. governors C. both the chairman and the governor D. neither the chairman nor the governor 12. The Federal Reserve having “open market operations” means ___. A. It accepts all kinds of financial instruments. B. It operates 24 hours a day, 7 days a week. C. It transacts even with those people outside the member banks. D. all of the above 13. How does the Federal Reserve create liquidity in the market? A. It buys fixed-income investments. B. It sells collateralized debt obligations. C. It sells fixed-income investments. D. all of the above 14. What does LIBOR stand for? A. Leicester Internal Bureau of Reserve B. Leicester International Bank Open Rate C. London Interbank Offered Rate D. London International Bank Official Rate 15. These are funds which a member bank of the Federal Reserve leaves on deposit at the Federal Reserve. A. Federal Asset B. Federal Deposits C. Federal Funds D. Federal Reserve Account 16. What is the Federal Fund rate? A. the overnight rate which is the daily average of the rates of most member banks B. the overnight rate which is the highest accounted rate of the day among the member banks C. the overnight rate which is the rate of the day of the Federal Reserve D. the overnight rate which is twice the rate of the day of the loaning bank 17. These are dollar-denominated deposits which are held in a bank branch outside the United States. A. Eurodollars B. Federal Funds C. Foreign Deposits D. all of the above 18. This is the rate for Eurodollars loaned overnight. A. Eurodollar Overnight Rate B. Eurodollar Standardized Rate C. Federal Fund Rate D. London Interbank Offered Rate 19. The London Interbank Offered Rate is the average of Eurodollar loan rates of five major banks which are all located in London. A. True B. False 20. Which of the following is NOT considered as eligible securitie...