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

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Viewing questions 11-20 out of questions
Questions # 11:

Bubba is concerned about the liquidity of a possible municipal bond purchase. He is therefore probably most interested in the rating supplied by which of the following?

Options:

A.

the bond buyers


B.

Moody’s


C.

White’s


D.

Dow Jones


Expert Solution
Questions # 12:

A leveraged company is best described as one that has a small portion of its capitalization represented by:

Options:

A.

common stock


B.

preferred stock


C.

debentures


D.

convertible bonds


Expert Solution
Questions # 13:

Which of the following have a stated interest rate on the face of the certificates?

Options:

A.

treasury bills


B.

treasury notes


C.

treasury bonds


D.

both B and C


Expert Solution
Questions # 14:

Bubba has a short margin account with a short market value of $22,000, a credit balance of $42,000, and SMA of $500.

What is the equity in Bubba’s account?

Options:

A.

$500


B.

$20,000


C.

$20,500


D.

$37,000


Expert Solution
Questions # 15:

After an extended period of backing and filling, a stock moves up sharply through a resistance level on heavy volume. A technical analyst would likely call this a:

Options:

A.

buy-in


B.

technical rally


C.

buying climax


D.

breakout


Expert Solution
Questions # 16:

Which of the following is not prohibited of a general partner?

Options:

A.

acting in such a way as to impede the orderly business of the partnership


B.

buying or selling assets of the partnership except to foster the business of the partnership


C.

competing in any way with the partnership


D.

accepting compensation from any other partnership


Expert Solution
Questions # 17:

Bonds are most often quoted as a percentage of:

Options:

A.

face value


B.

book value


C.

market value


D.

whatever value the broker says


Expert Solution
Questions # 18:

Bubba sells short 100 XYZ at $60 and makes the required Regulation T deposit of 50%. XYZ then rises I price to $65.

At this point what is the credit balance?

Options:

A.

$2,500


B.

$3,500


C.

$6,000


D.

$9,000


Expert Solution
Questions # 19:

What expression is used to describe the application of income and revenues derived from the operation of a facility financed from proceeds of a revenue bond?

Options:

A.

debt service


B.

flow of funds


C.

revenue funding


D.

disbursement of priorities


Expert Solution
Questions # 20:

Bubba buys 100 shares of XYZ stock at $40 per share and sells a listed July XYZ call at 45 for a $2 premium.

What is his loss potential?

Options:

A.

$3,800


B.

$4,000


C.

$4,200


D.

$4,500


Expert Solution
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