1. Which of the following events must be reported on a registered representative's Form U4?

a.) failure to file a timely tax return

b.) a missed payment on the RR's mortgage

c.) rejection of an RR's mortgage application

d.) a lenders' agreement to reduce the amount of an RR's debt

2. A person who has successfully passed only the securities industry essentials (SIE) exam:

a.) is deemed preapproved for association with a member firm

b.) is permitted to engage in a limited amount of securities business

c.) has been subjected to a statutory disqualification review process

d.) has up to four years to become registered without having to retake the exam

3. Which of the following statements is true about warrants?

a. They do not have an expiration date

b. They have less volatility then the underlying stock

c. they pay dividends but are not adjusted for stock splits

d. they entitled the holder to buy a specified number of shares at a specific price

4.Which of the following securities carries the highest degree of prepayment risk?

a. Treasury bond

b. corporate bond

c. U.S. government bond

d. Collateral mortgage obligation (CMO)