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Free SIE Practice Questions

10 free, exam-style Securities Industry Essentials (SIE) (SIE) practice questions with answers and explanations. No signup required. Work through them below, then take the full free SIE practice test to study every exam domain.

Question 1

Which federal law created the Securities and Exchange Commission (SEC)?

  1. Securities Act of 1933
  2. Securities Exchange Act of 1934
  3. Investment Company Act of 1940
  4. Securities Investor Protection Act of 1970
Show answer & explanation

Correct answer: B - Securities Exchange Act of 1934

Question 2

The SEC has authority over all of the following EXCEPT:

  1. Registering broker-dealers
  2. Approving SRO rules
  3. Setting monetary policy
  4. Enforcing federal securities laws
Show answer & explanation

Correct answer: C - Setting monetary policy

Question 3

Which of the following best describes the SEC?

  1. A self-regulatory organization
  2. A federal government agency
  3. A non-profit corporation
  4. A private industry association
Show answer & explanation

Correct answer: B - A federal government agency

Question 4

The SEC oversees all of the following EXCEPT:

  1. FINRA
  2. MSRB
  3. Stock exchanges
  4. The Federal Reserve Board
Show answer & explanation

Correct answer: D - The Federal Reserve Board

Question 5

Which of the following is a primary function of the SEC?

  1. Insuring customer deposits at banks
  2. Protecting customers of failed broker-dealers
  3. Enforcing federal securities laws and regulating the securities industry
  4. Writing rules for municipal securities dealers
Show answer & explanation

Correct answer: C - Enforcing federal securities laws and regulating the securities industry

Question 6

A new self-regulatory organization wants to implement a rule change. Which entity must approve the change?

  1. FINRA
  2. The Federal Reserve
  3. The SEC
  4. The Department of the Treasury
Show answer & explanation

Correct answer: C - The SEC

Question 7

FINRA is best described as:

  1. A federal government agency
  2. A self-regulatory organization
  3. A division of the SEC
  4. An independent federal commission
Show answer & explanation

Correct answer: B - A self-regulatory organization

Question 8

Which organization administers qualification exams such as the SIE and Series 7?

  1. The SEC
  2. FINRA
  3. MSRB
  4. NASAA
Show answer & explanation

Correct answer: B - FINRA

Question 9

FINRA has regulatory authority over:

  1. Banks and savings institutions
  2. Broker-dealers and their associated persons
  3. Insurance companies
  4. Municipal issuers
Show answer & explanation

Correct answer: B - Broker-dealers and their associated persons

Question 10

A registered representative violates a FINRA rule. Which entity is primarily responsible for enforcing disciplinary action?

  1. The SEC
  2. FINRA
  3. The state securities administrator
  4. The Department of Justice
Show answer & explanation

Correct answer: B - FINRA

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