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

SIE Exam: Securities Industry Essentials Exam Lessons and Information

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.