SIE (Securities Industry Essentials) Practice Exam

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Prepare for the SIE (Securities Industry Essentials) Exam. With comprehensive questions and detailed explanations, enhance your knowledge and readiness for this crucial finance exam.

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What is the maximum coverage offered per separate customer under SIPC insurance?

$250,000 for securities and cash combined
$500,000 for securities and cash combined
$1,000,000 for securities and cash combined
No limit on coverage

The correct answer is: $500,000 for securities and cash combined

SIPC insurance offers a maximum coverage of $250,000 for securities and cash combined for each separate customer. While option B may seem like the correct answer with a higher coverage amount, this is incorrect as it exceeds the maximum coverage amount offered by SIPC. Option A and C are also incorrect as they both fall below the maximum coverage limit. Option D, while attractive, is also incorrect as there is a limit on coverage offered by SIPC. Therefore, option B is the correct answer with the maximum coverage offered per separate customer being $250,000 for securities and cash combined.