Series 7 Practice Questions || with Errorless Solutions 100%.
An investor tells his rr to purchase 50m EGG 11.7% debenture bonds. The order goes through
and the bonds are purchased for 113. A year before the bond matures, it is valued at 103. What is
this called? correct answers Amortization
In oil and gas limited partnerships is the risk greater in developmental or exploratory programs?
correct answers exploratory
What is the best way to measure the GNP? (gross national product) correct answers constant
dollars
What is the broker's role in the term "broker/dealer"? correct answers executing trades for client
accounts
What is the maximum federal tax rate for corporations on their dividends and other income?
correct answers 35%
What is the maximum federal tax rate for individuals on their dividends and other income?
correct answers 20%
What type of securities are exempt from registration under the Securities Act of 1933? correct
answers government agency issues
Suppose a put is assigned to the writer. Under federal guidlines, the premium received by the
writer of the put is treated in what manner? correct answers It is subtracted from the cost basis
when the writer is assigned
How much income must a REIT generate from the real estate properties? correct answers 75%
How much must a REIT pass-through of its profits to investors? correct answers 90%
A portfolio manager of a pension fund desires income but wants to protect the porfolio. What
option position would he make? correct answers Write calls against the market index for income
and protection.
A rr should request an extension of time for an invest to pay for stock that he has purchased by
the: correct answers Fifth business day
Self-employed people can contribute how much to thier Keogh? correct answers The lesser of
100% of their income or $51,000
Your customer thinks that the stock is aobut to hit the resistance level and break through to the
next level. She would like to take advantage of the situation. Whay type of ORDER would you
suggest she place? correct answers Buy Stop order
, When an investor buys a corporate bond, they have how many days to pay for it? correct answers
3 business days
What are the rating agencies for ST, LT and Muni Debt Securities? correct answers 1. S&P
2. Moody's
3. Fitch's
4. Best's
What does Best's Rating service rate? correct answers they are the one rating company that rates
insurance companies instead of bonds
How are CDs issued? correct answers in bearer form only
Where are CDs shown and for how long? correct answers on Nasdaq with a minimum duration
of 14 days
How are CDs quoted? correct answers in terms of yield
Who does not issue eurodollar deposits? correct answers US government
What kind of taxes is the interest of corporate bonds subject to? correct answers federal income
tax and state income tax
If a zero-coupon bond is held for one year and sold above its original value, the investor will
have? correct answers ordinary income and capital gain
If a zero-coupon bondholder hold it until maturity they will have no? correct answers no capital
gain
What type of muni note does not get rated by MIG because they are backed by a government
bond? correct answers CLNs
What does a bond indenture NOT include? correct answers re-offering yields
What is required before a revenue bond can be issued? correct answers feasibility study and
engineering report
What must a muni bond being issued obtain from a bond counsel? correct answers legal opinion
What 3 things does the bond counsel help do while making its opinion? correct answers 1.
research laws to check into tax-exempt status requirements
2. assist in getting favorable legislation passed in locality
3. supplies information to the underwriters for official statement
What are the 3 major bond rating organizations? correct answers 1.S&P
2. Moody's
An investor tells his rr to purchase 50m EGG 11.7% debenture bonds. The order goes through
and the bonds are purchased for 113. A year before the bond matures, it is valued at 103. What is
this called? correct answers Amortization
In oil and gas limited partnerships is the risk greater in developmental or exploratory programs?
correct answers exploratory
What is the best way to measure the GNP? (gross national product) correct answers constant
dollars
What is the broker's role in the term "broker/dealer"? correct answers executing trades for client
accounts
What is the maximum federal tax rate for corporations on their dividends and other income?
correct answers 35%
What is the maximum federal tax rate for individuals on their dividends and other income?
correct answers 20%
What type of securities are exempt from registration under the Securities Act of 1933? correct
answers government agency issues
Suppose a put is assigned to the writer. Under federal guidlines, the premium received by the
writer of the put is treated in what manner? correct answers It is subtracted from the cost basis
when the writer is assigned
How much income must a REIT generate from the real estate properties? correct answers 75%
How much must a REIT pass-through of its profits to investors? correct answers 90%
A portfolio manager of a pension fund desires income but wants to protect the porfolio. What
option position would he make? correct answers Write calls against the market index for income
and protection.
A rr should request an extension of time for an invest to pay for stock that he has purchased by
the: correct answers Fifth business day
Self-employed people can contribute how much to thier Keogh? correct answers The lesser of
100% of their income or $51,000
Your customer thinks that the stock is aobut to hit the resistance level and break through to the
next level. She would like to take advantage of the situation. Whay type of ORDER would you
suggest she place? correct answers Buy Stop order
, When an investor buys a corporate bond, they have how many days to pay for it? correct answers
3 business days
What are the rating agencies for ST, LT and Muni Debt Securities? correct answers 1. S&P
2. Moody's
3. Fitch's
4. Best's
What does Best's Rating service rate? correct answers they are the one rating company that rates
insurance companies instead of bonds
How are CDs issued? correct answers in bearer form only
Where are CDs shown and for how long? correct answers on Nasdaq with a minimum duration
of 14 days
How are CDs quoted? correct answers in terms of yield
Who does not issue eurodollar deposits? correct answers US government
What kind of taxes is the interest of corporate bonds subject to? correct answers federal income
tax and state income tax
If a zero-coupon bond is held for one year and sold above its original value, the investor will
have? correct answers ordinary income and capital gain
If a zero-coupon bondholder hold it until maturity they will have no? correct answers no capital
gain
What type of muni note does not get rated by MIG because they are backed by a government
bond? correct answers CLNs
What does a bond indenture NOT include? correct answers re-offering yields
What is required before a revenue bond can be issued? correct answers feasibility study and
engineering report
What must a muni bond being issued obtain from a bond counsel? correct answers legal opinion
What 3 things does the bond counsel help do while making its opinion? correct answers 1.
research laws to check into tax-exempt status requirements
2. assist in getting favorable legislation passed in locality
3. supplies information to the underwriters for official statement
What are the 3 major bond rating organizations? correct answers 1.S&P
2. Moody's
