Pass the FINRA General Securities Representative Series-7 Questions and answers with CertsForce

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Questions # 1:

If federal excise taxes were increased by the government, what would the typical investor do about his securities portfolio?

Options:

A.

sell treasuries and invest in municipal bonds


B.

sell corporate bonds and invest in treasuries


C.

sell municipal bonds and invest in high quality growth stocks


D.

take no action as a result of the tax increase


Expert Solution
Questions # 2:

Bubba buys an OTC stock from a firm that is a market -maker in the stock.

What may be said about the price he pays?

Options:

A.

it does not include a markup


B.

it includes a markup


C.

it includes a commission and a markup


D.

it includes a special fee


Expert Solution
Questions # 3:

Bubba is eligible for a Roth IRA. He may convert his SEP-IRA to a Roth IRA:

Options:

A.

without restriction


B.

only after the two-year holding period


C.

after a 90-day holding period


D.

not ever


Expert Solution
Questions # 4:

A mutual fund with an 8% load and a 1% redemption fee carries a current quote of $6.25 - $6.79. If an investor has tendered his shares for redemption on that basis, the per share price he will receive is approximately:

Options:

A.

$6.79


B.

$6.72


C.

$6.25


D.

$6.19


Expert Solution
Questions # 5:

Mutual fund salespersons may not represent that a product is like of safer than:

Options:

A.

an insurance policy


B.

a fixed annuity


C.

a corporate debt instrument


D.

all of the above


Expert Solution
Questions # 6:

The expiration date of a listed option is:

Options:

A.

the last day of the expiration month


B.

the third Saturday of the expiration month


C.

the Saturday following the third Friday of the expiration month


D.

the third Friday of the expiration month


Expert Solution
Questions # 7:

Which of the following municipal bonds may be grouped under the classification of “revenue bonds”?

Options:

A.

special tax


B.

new housing authority


C.

general obligation


D.

limited tax


Expert Solution
Questions # 8:

Which of the following organizations usually has a prominent role in guiding investment policies of mutual funds?

Options:

A.

the plan company


B.

the management group


C.

the custodian bank


D.

the underwriter


Expert Solution
Questions # 9:

What percentage load is associated with a mutual fund quoted 16.60-18.04?

Options:

A.

8.7%


B.

9%


C.

8%


D.

cannot be determined from this information


Expert Solution
Questions # 10:

Bubba buys a 5% municipal bond maturing in 15 years that is trading at a market price of 85.

What is the current yield?

Options:

A.

5.00%


B.

5.88%


C.

6.49%


D.

5.10%


Expert Solution
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