SIE Customer Accounts

Updated October 27, 2026

1. Two owners hold a joint account. When one dies, the account passes automatically to the other. What type of account is this?
   A.Joint tenants with right of survivorshipB.Tenants in commonC.CustodialD.Discretionary
2. In a UTMA account, who owns the assets?
   A.The custodianB.The minorC.The parents jointlyD.The broker-dealer
3. What does a discretionary account require before the representative can trade without the customer's approval for each trade?
   A.A verbal agreement onlyB.A margin agreementC.The customer's written authorizationD.Approval from FINRA
4. Under Regulation T, what is the initial margin requirement for most stock purchases?
   A.25%B.50%C.75%D.100%
5. A customer deposits $9,500 in cash on Monday and $9,500 on Tuesday, apparently to avoid a report. This is called:
   A.LayeringB.Front runningC.ChurningD.Structuring
6. When is a currency transaction report (CTR) required?
   A.For cash transactions over $10,000 in a dayB.For any cash deposit over $1,000C.For any wire transferD.Only when fraud is proven
7. Two people own an account as tenants in common. One dies. What happens to that person's share?
   A.It goes to the deceased owner's estateB.It passes automatically to the other ownerC.It is forfeited to the brokerage firmD.It is split equally among all the firm's customers
8. What is the FINRA minimum maintenance margin requirement for a long stock position in a margin account?
   A.10% of the market valueB.25% of the market valueC.50% of the market valueD.75% of the market value
9. How much protection does SIPC provide per customer if a member firm fails?
   A.Up to $100,000 totalB.Up to $500,000, of which up to $250,000 can be cashC.Up to $250,000, all of it in cashD.Unlimited protection against market losses
10. At a minimum, how often must customers receive account statements?
    A.MonthlyB.Twice a yearC.QuarterlyD.Once a year
11. Which law requires firms to verify a new customer's identity through a Customer Identification Program?
    A.The Securities Act of 1933B.The Trust Indenture ActC.The Investment Advisers ActD.The USA PATRIOT Act
12. A transfer on death (TOD) registration on an individual account:
    A.Lets assets pass directly to a named beneficiary at death, without going through probateB.Gives the beneficiary trading authority during the owner's lifeC.Makes the account a joint accountD.Is only allowed for minors
13. Which FINRA rule requires a firm to use reasonable diligence to know the essential facts about each customer?
    A.The suitability ruleB.The know your customer ruleC.The gifts ruleD.The outside business activities rule
14. Who can be the custodian on a UTMA account?
    A.Any number of adults togetherB.The minorC.One custodian for one minor per accountD.Only a bank