FINRA SIE quiz

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FINRA Securities Industry Essentials (SIE)

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What is the primary reason for a banker’s acceptance to be issued with a maturity of 270 days or less?

(a)
To get the international trade done sooner
(b)
To ensure safety for investors
(c)
Historically speaking, they’ve always had this maturity
(d)
To avoid registration with the SEC

Banker’s acceptances (BAs) help facilitate international trade and have a maximum maturity of 270 days, therefore they are exempt securities. Exempt securities avoid registration with the SEC, which saves money and time.

What is the primary reason for a banker’s acceptance to be issued with a maturity of 270 days or less?

Select the answer

To get the international trade done sooner

To ensure safety for investors

Historically speaking, they’ve always had this maturity

To avoid registration with the SEC