[2023] New Series-7 exam dumps Use Updated FINRA Exam
Verified Series-7 Dumps Q&As - Series-7 Test Engine with Correct Answers
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How much FINRA Series 7 Certification Exam cost
The Series 7 exam is officially known as the general exam of securities representatives. It is a highly regulated exam that must be taken in an official test center. The cost to take the test is at least $ 265, with some areas in charge a little more.
NEW QUESTION 21
For an FINRA member firm to exercise discretionary power in any customer account requires written authorization by that customer except when:
- A. the customer has given an oral approval after the transaction
- B. the customer is a spouse of the registered representative
- C. only time and price of execution are involved
- D. both B and C
Answer: C
Explanation:
Explanation/Reference:
Explanation: only time and price of execution are involved. The only exception to the discretionary rule is when the customer gives discretion regarding time and price of execution.
NEW QUESTION 22
Bubba Corporation owes income tax. Which of the following may be tendered at par value for payment of the tax?
- A. term bond
- B. pre-issue bond
- C. special tax bond
- D. tax anticipation bill
Answer: D
Explanation:
tax anticipation bill. These are specifically designated securities that may be used at face value for payment of corporate taxes.
NEW QUESTION 23
An ERISA benefits plan qualified under Section 401(a) of the Internal Revenue Code may:
- A. purchase only securities issued by the state or federal government
- B. apply for an exemption
- C. purchase any IPO security provided the plan is not sponsored solely by a broker/dealer
- D. only purchase securities rated "A" or better
Answer: C
Explanation:
purchase any IPO security provided the plan is not sponsored solely by a broker/dealer. An ERISA plan that is qualified under Section 401(a) may purchase any IPO security provided that the plan sponsor is not a broker/dealer.
NEW QUESTION 24
A corporate bond is quoted as having a net change in value of plus one point.
By how much did the bond price increase?
- A. $100
- B. $1
- C. $1,000
- D. $10
Answer: D
Explanation:
$10. A point is 1% and bonds are priced in $1,000 increments. Multiplying $1,000 by 1% equals $10.
NEW QUESTION 25
A syndicate manager has just been informed that its bid has been accepted and all syndicate members are duly notified. Public information on the award will be most quickly available from:
- A. the daily Bond Buyer
- B. the Blue List
- C. the Wall Street Journal
- D. Munifacts
Answer: D
Explanation:
Explanation/Reference:
Explanation: Munifacts. This is a wire service provided by the daily Bond Buyer. It displays information on municipal traders, underwriters, and other participants in the fixed income markets.
NEW QUESTION 26
Which of the following does not affect the public offering price of a new issue?
- A. the selling group's determination of value in the prevailing market conditions
- B. dividend projections for the next year
- C. anticipated earnings of the issuer in the next year
- D. the book value of the issuer
Answer: A
Explanation:
Explanation/Reference:
Explanation: the selling group's determination of value in the prevailing market conditions. The offering price is determined by factors related to the issuer.
NEW QUESTION 27
When the market value in a long margin account decreases, the SMA will:
- A. stay the same
- B. decrease
- C. increase
- D. fluctuate
Answer: A
Explanation:
stay the same. The SMA does not decline as the market value declines.
NEW QUESTION 28
Under which of the following conditions are homeowners most likely to refinance existing mortgages?
- A. when the yield curve is inverted
- B. when interest rates fall
- C. when interest rates are stable
- D. when interest rates rise
Answer: B
Explanation:
Explanation/Reference:
Explanation: when interest rates fall. Homeowners are most likely to refinance when rates are lower than the past.
NEW QUESTION 29
In a monthly review of customer statements, Bubba notices that one of his firm's clients has paid for seven purchases five days late.
What does he do?
- A. ascertains that extensions had been obtained under Reg T
- B. ascertains whether the client had a sufficient bank balance on settlement date
- C. nothing because this is not a violation provided the securities were not listed on the NYSE
- D. decides this situation is acceptable provided payment was received before any securities were sold
Answer: A
Explanation:
Explanation/Reference:
Explanation: ascertains that extensions had been obtained under Reg T.
If valid reasons exist, extension of time for payment may be obtained.
NEW QUESTION 30
In a 401(k) plan, when are employee's contributions of compensation deferral vested?
- A. immediately
- B. after 2 years
- C. after 5 years
- D. the same as the employer's contributions
Answer: A
Explanation:
Explanation/Reference:
Explanation: immediately. The employer's contributions may be subject to a vesting schedule, but the employee's contributions are immediately vested.
NEW QUESTION 31
The initial Federal Reserve Bank margin requirement is set at 60% and Bubba purchases 100 shares of XYZ at $100 per share. He deposits $6,000 of the $10,000 purchase price in his account.
If XYZ increases in value to $150 per share, how much excess equity would Bubba have in his account?
- A. $2,000
- B. $1,500
- C. $1,000
- D. $3,000
Answer: A
Explanation:
$2,000. Bubba started with $6,000 of equity and a debit balance of $4,000. The market value of his XYZ stock increased by $5,000 ($15,000 - $10,000). Therefore, his equity increased to $11,000. Since Bubba only needs 60% equity, his Reg T requirement is $9,000 ($15,000 x 60%). His equity exceeds the requirement by $2,000.
NEW QUESTION 32
In a triple net lease, which of the following is the tenant not responsible for paying?
- A. taxes
- B. insurance premiums
- C. maintenance
- D. financing charges
Answer: D
Explanation:
Explanation/Reference:
Explanation: financing charges. In a triple net lease, the tenant is responsible for taxes, insurance, and maintenance.
NEW QUESTION 33
Which of the following is least relevant in evaluating the safety of a general obligation bond?
- A. total GO debt as a percentage of market value of property
- B. total debt service as a percentage of net operating revenue
- C. per capital debt
- D. total GO debt as a percentage of assessed value of property
Answer: B
Explanation:
total debt service as a percentage of net operating revenue. This ratio is applicable to revenue bonds but not general obligation bonds. The other choices are all used in measuring credit risk in a GO bond.
NEW QUESTION 34
Which of the following would be least useful to an analyst making a technical market report?
- A. new highs and lows
- B. the short interest
- C. advances and declines
- D. predictions of recession in the economy
Answer: D
Explanation:
Explanation/Reference:
Explanation: predictions of recession in the economy. All of the other choices are technical market indicators. An economic forecast is "fundamental" market data.
NEW QUESTION 35
Which of the following is not provided for by Blue Sky laws?
- A. registration of securities dealers
- B. registration of representatives
- C. registration of securities offered in the state
- D. interstate mail fraud in securities offerings
Answer: D
Explanation:
interstate mail fraud in securities offerings. Blue Sky laws are state security laws and do not cover interstate regulations.
NEW QUESTION 36
Bubba opens a margin account and sells short 100 shares of XYZ at $50. Assuming a Reg T requirement of 50%, what is the opening balance in Bubba's account?
- A. $7,500
- B. $5,000
- C. $10,000
- D. $2,500
Answer: A
Explanation:
Explanation/Reference:
Explanation: $7,500. The short sale transaction is $5,000. The Reg T required deposit is $2,500 ($5,000 x
50%). Adding both results in $7,500.
NEW QUESTION 37
Which of the following organizations usually has a prominent role in guiding investment policies of mutual funds?
- A. the plan company
- B. the custodian bank
- C. the management group
- D. the underwriter
Answer: C
Explanation:
the management group. The management group is actually comprised of the management company (including the underwriter) and the investment advisor.
NEW QUESTION 38
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