[Jul 29, 2023] Series-7 Exam Dumps PDF Guaranteed Success with Accurate & Updated Questions
Pass Series-7 Exam - Real Test Engine PDF with 402 Questions
The Series-7 exam covers a wide range of topics related to the securities industry, including stocks, bonds, options, mutual funds, and investment banking. Series-7 exam is divided into two parts, with the first part consisting of 125 multiple-choice questions and the second part consisting of 75 multiple-choice questions. Series-7 exam is timed, with a total of 225 minutes allocated for both parts. In order to pass the exam, individuals must score at least 72% on both parts.
FINRA Series-7 (General Securities Representative Qualification Examination) Certification Exam is a crucial certification for professionals looking to work in the securities industry. General Securities Representative Qualification Examination (GS) certification is administered by the Financial Industry Regulatory Authority (FINRA) and is a mandatory requirement for individuals looking to work as a general securities representative. Series-7 exam assesses the knowledge and skills required to perform the duties of a general securities representative, including sales of corporate securities, municipal securities, investment company securities, variable annuities, and direct participation programs.
NEW QUESTION # 163
Which of the following is identified as a funded debt instrument?
- A. US treasury bond
- B. Fannie Mae bond
- C. Series EE savings bond
- D. corporate bond
Answer: D
Explanation:
Explanation/Reference:
Explanation: corporate bond. All of the other securities are issues backed by the US government, which are not considered funded debt.
NEW QUESTION # 164
Interest rates rise from 5.10% to 5.30%. For a prospective buyer of five $1,000 bonds, what is the increase in interest payments as a result of the rise?
- A. $10
- B. $2
- C. $20
- D. $100
Answer: A
Explanation:
Explanation/Reference:
Explanation: $10. Interest rates increased by 20 basis points. One basis point is 10 cents. So 20 basis points is $2. But...since there are five bonds, that $2 x 5 = $10.
NEW QUESTION # 165
A mutual fund letter of intent may permissibly be predated for a period of time up to:
- A. 13 months
- B. 5 business days
- C. 90 calendar days
- D. 10 business days
Answer: C
Explanation:
Explanation/Reference:
Explanation: 90 calendar days. An investor has 90 days from the date of original purchase to sign a letter of intent. The maximum duration for the letter is 13 months from the initial purchase.
NEW QUESTION # 166
Bubba's pledge to purchase a specified dollar amount of a mutual fund within a specified period of time is called:
- A. a stock power
- B. a promissory note
- C. a letter of intent
- D. an investment letter
Answer: C
Explanation:
a letter of intent. This accurately describes the definition of a letter of intent.
NEW QUESTION # 167
Bubba maintains an individual cash account as well as a joint account with his wife, Bubbette. While Bubba is out of town on a fishing trip, Bubbette calls the brokerage firm with an order to buy 100 shares of Great Company, Inc., at the market value for Bubba individual account. It is a stock Bubba has previously informed the brokerage he wanted to buy at the "right price".
What does the brokerage do?
- A. enter the order only after receipt of written instructions to do so from Bubba
- B. buy the stock in the joint account and, after verification from Bubba, journal the security to his individual account
- C. execute the order as requested
- D. refuse to accept the order unless Bubba has provided a signed trading authorization in favor of Bubbette
Answer: D
Explanation:
refuse to accept the order unless Bubba has provided a signed trading authorization in favor of Bubbette. Unless Bubbette has been given written trading authorization over Bubba's account, trading orders cannot be accepted from her or any other person.
NEW QUESTION # 168
Which of the following is considered an intangible asset?
- A. accounts receivable
- B. trademarks
- C. furniture
- D. marketable securities
Answer: B
Explanation:
Explanation/Reference:
Explanation: trademarks. Intangible assets are those whose true value cannot be determined, but there is some supposed market value.
NEW QUESTION # 169
In considering the fairness of a firm's markup, the FINRA considers:
- A. amount of the transaction
- B. dealer cost for the security
- C. financial condition of the client
- D. profitability of the member firm
Answer: A
Explanation:
Explanation/Reference:
Explanation: amount of the transaction. The other choices are not FINRA considerations. The dollar amount of the transaction is one of the factors considered in markup fairness. Other factors include the type of security, the amount of service rendered, the unit price of the security, and general availability of the security.
NEW QUESTION # 170
How much money is a concession of 3/8 worth for one municipal bond?
- A. $37.50
- B. $375.00
- C. $0.375
- D. $3.75
Answer: D
Explanation:
$3.75. Three-eighths of a $1,000 bond with a par price of 100.00 equals $3.75.
NEW QUESTION # 171
If a customer fails to pay for securities purchased in a cash account, the member firm broker will do which of the following?
- A. purchase the securities for the firm's error account
- B. place the securities temporarily in a general account
- C. grant an extension for a bona fide reason
- D. liquidate the securities or otherwise cancel the transaction
Answer: D
Explanation:
liquidate the securities or otherwise cancel the transaction. Reg T requires the position closed if the customer fails to comply with the rules. An extension may be granted, but not by the member firm. Only an exchange or the FINRA grants extensions for bona fide reasons.
NEW QUESTION # 172
A call option is in the money when the market value of the underlying stock is:
- A. higher than the strike price of the option
- B. higher than the strike price plus the premium
- C. the same as the strike price of the option
- D. lower than the strike price of the option
Answer: A
Explanation:
higher than the strike price of the option. The premium paid is not relevant. All that matters are the strike price of the option relative to the market value of the underlying stock.
NEW QUESTION # 173
Bubba buys a municipal bond at 102 and holds it ten years to maturity.
For tax purposes, how is that premium treated?
- A. an ordinary loss taken as a deduction from taxable income
- B. recorded as a long-term capital loss
- C. amortized over the life of the bond resulting in no loss at maturity
- D. carried forward as a premium loss applied against profits realized on future municipal securities
Answer: C
Explanation:
Explanation/Reference:
Explanation: amortized over the life of the bond resulting in no loss at maturity. For tax purposes, premiums are amortized over the life of the bond. Some amount is taken each year.
NEW QUESTION # 174
Which of the following municipal bonds may be grouped under the classification of "revenue bonds"?
- A. limited tax
- B. special tax
- C. new housing authority
- D. general obligation
Answer: B
Explanation:
Explanation/Reference:
Explanation: special tax. The other categories are not revenue bonds. Special tax is the only type that fits the general grouping.
NEW QUESTION # 175
Bubba is age 54 and has investments in a retirement plan with his former employer valued at $104,500.
Bubba withdraws $25,000 to open a retail clothing store.
Which of the following statements is true regarding Bubba's tax consequences?
- A. only regular income tax is due on the amount withdrawn
- B. a penalty of 10% on all assets in Bubba's account is assessed
- C. a penalty of 10% of the withdrawn amount is assessed
- D. the entire account is terminated and $104,500 is immediately taxable
Answer: C
Explanation:
Explanation/Reference:
Explanation: a penalty of 10% of the withdrawn is assessed. Bubba also owes regular income tax on the withdrawn amount in addition to the 10% penalty for early withdrawal.
NEW QUESTION # 176
If a municipality has funds available to make a partial call of an issue of outstanding serial bonds, which bonds should be called first?
- A. the maturity with the largest number of bonds
- B. the shortest maturity
- C. the maturity bearing the lowest interest rate
- D. the longest maturity
Answer: D
Explanation:
Explanation/Reference:
Explanation: the longest maturity. These bonds are called first because the municipality will save the interest costs for the longest period of time.
NEW QUESTION # 177
Distribution from an IRA can begin at age 59½ and must begin by age:
- A. 70½
- B. 0
- C. whenever the individual is retired
- D. 1
Answer: A
Explanation:
Explanation/Reference:
Explanation: 70½. This the age at which IRA withdrawals are required.
NEW QUESTION # 178
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