SIE – Practice Exam 8

To help regulate the money supply, The Fed will sometimes initiate:

Loan principals are paid back at the end of the loan term on the:

Which of the following is true about treasury notes?

1. They are intermediate-term borrowings (2 to 10 years)
2. Interest is paid at maturity
3. They are short-term borrowings (1 year or less)
4. Interest is paid semi-annually

Which of the following is true about corporate and municipal bonds?

1. The number of business settlement days is 3
2. The number of days in the year is 360
3. The number of business settlement days is 1
4. The number of days in the year is 365

City A is issuing general obligation bonds for the construction of a utility line. These bonds will be backed by the city’s:

A bond with a face value of $5,000 and $75 semiannual interest payments has a coupon rate of:

Brokerage firms are required to provide the following document, which describes options and their potential risks, to investors at or prior to account opening:

When the current price of the underlying stock equals the strike price, an option is said to be:

Investor A has the right to buy 100 shares of Company ABC stock at a strike price of $225. Company ABC is currently trading on the New York Stock Exchange at $200. This option is:

An investor who borrows shares from a broker, immediately sells them at the current market price, and then, after the market price has declined, buys them back on the open market to return the borrowed shares is using a strategy known as: