FINRA-SERIES-7 Online Practice Questions and Answers

A registered representative is given a limited trading authorization by a client. This permits the representative to:

A. withdraw money from the account

B. enter orders for the account at the representative's discretion

C. withdraw securities from the account

D. all of the above

An "accumulation unit" of a variable annuity is used to determine which of the following?

A. the value of the annuitant's contract before annuity payments begin

B. the amount of annuity payments to be paid to the owner

C. the amount to be passed to the annuitant's beneficiary

D. the amount returned to the annuitant upon redemption of the account

Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at 47.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the preferred stock is:

A. overpriced and will quickly decline

B. selling at a 4% premium over conversion value

C. underpriced and should rise quickly

D. going to be called when the common stock price is $52

Bubba Corporation has a registered public offering of 750,000 shares at $40. An underwriter of 30,000 shares is advised by the manager that its retention will be 70%. How many shares may the underwriter sell to its own customers?

A. 30,000

B. 21,000

C. 9.000

D. as many as it can up to a maximum of 51,000

Which of the following is not good delivery on a sale of 470 shares?

A. 47 10-share certificates

B. 4 100-share certificates and one 70-share certificate

C. 8 50-share certificates, one 40-share certificate, and one 30-share certificate

D. 2 100-share certificates and 3 90-share certificates

In what broad category of municipal bonds are "limited tax" bonds placed?

A. general obligation

B. special tax

C. revenue

D. new housing authority

Regulation A permits a short form of filing for offerings of new securities provided the total amount of the offering does not exceed:

A. $1,000,000

B. $5,000,000

C. $2,000,000

D. $2,500,000

Which of the following securities has the highest amount of market risk?

A. US treasury bills

B. US treasury certificates

C. US treasury notes

D. savings bank deposits

The FINRA Conduct Rules permit a transaction made "seller's option" to be delivered earlier than the expiration of the contract if:

A. the buyer is given one-day notice in writing

B. the seller is located in New York City

C. the client requests it

D. the buyer is a non-clearing member

A front-end loan mutual fund plan is most suitable for:

A. a voluntary accumulation plan

B. a contractual plan

C. an automatic withdrawal plan

D. an optional withdrawal plan