Series-7 by FINRA Actual Free Exam Questions And Answers

Question 1

Bubba want to buy a CMO. In general, how often should he expect to receive interest payments?

A. every week

B. every month

C. every year

D. at maturity

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 2

Bubba has a cash account and fails to make full and prompt payment for a purchase. The broker liquidated the transaction. Two weeks later, Bubba places another buy order for 100 shares of XYZ.
What does the broker do?

A. handles the order after obtaining a promise from Bubba to effect prompt settlement

B. requires a 25% down payment before executing the order

C. refuses the order

D. executes the order at its own risk

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 3

When depositors withdraw money from savings institutions to invest in US treasury securities, this is called:

A. open market operations

B. disintermediation

C. reverse repo

D. the multiplier effect

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 4

In a competitive bidding for mortgage bonds of a large public utility the winning underwriter is determined by:

A. the highest dollar amount paid to the issuer

B. the lowest net interest cost to the issuer

C. the refunding and sinking fund terms in the indenture

D. the shortest maturity date for the bonds

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 5

Bubba buys $100,000 of US Treasury 10½ s of 31 on margin. If the current market price is 92.16, what is Bubba's minimum deposit requirement?

A. $5,550

B. $25,000

C. $4,625

D. $10,000

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 6

An investment company acting as a conduit in the distribution of net investment income, pursuant to IRS rules, is called:

A. balanced

B. dual-purpose

C. regulated

D. diversified

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 7

Which of the following municipal securities carries the full faith and credit of the US government for payment of interest and principal if the issuer's funds are insufficient?

A. general obligation bonds issued municipalities

B. special tax bonds issued by municipalities

C. revenue bonds issued by municipal port authorities

D. new housing authority bonds issued by a public housing authority

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 8

When the Federal Reserve lowers reserve requirements, what is it attempting to do?

A. increase the rediscount rate

B. counter inflation

C. raise interest rates

D. ease credit

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Question 9

Under which of the following was SIPC established?

A. Securities Investor Protection Act of 1970

B. Securities Exchange Reform Act of 1975

C. Securities Exchange Act of 1934

D. Securities Act of 1933

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

FINRA General Securities Representative Qualification Examination (GS) - Series-7 Exam Practice Test

Contact Us

Useful Links

Latest Updated