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Series 7 Practice EXAM
GUIDE WITH 100% CORRECT
ANSWERS.
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 answer✔️✔️Amortization
In oil and gas limited partnerships is the risk greater in developmental or
exploratory programs? - correct answer✔️✔️exploratory
What is the best way to measure the GNP? (gross national product) - correct
answer✔️✔️constant dollars
What is the broker's role in the term "broker/dealer"? - correct
answer✔️✔️executing trades for client accounts
What is the maximum federal tax rate for corporations on their dividends and other
income? - correct answer✔️✔️35%
What is the maximum federal tax rate for individuals on their dividends and other
income? - correct answer✔️✔️20%
What type of securities are exempt from registration under the Securities Act of
1933? - correct answer✔️✔️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 answer✔️✔️It
is subtracted from the cost basis when the writer is assigned
SUCCESS
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How much income must a REIT generate from the real estate properties? - correct
answer✔️✔️75%
How much must a REIT pass-through of its profits to investors? - correct
answer✔️✔️90%
A portfolio manager of a pension fund desires income but wants to protect the
porfolio. What option position would he make? - correct answer✔️✔️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 answer✔️✔️Fifth business day
Self-employed people can contribute how much to thier Keogh? - correct
answer✔️✔T ️ he 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 answer✔️✔️Buy Stop
order
When an investor buys a corporate bond, they have how many days to pay for it? -
correct answer✔️✔️3 business days
What are the rating agencies for ST, LT and Muni Debt Securities? - correct
answer✔️✔️1. S&P
2. Moody's
3. Fitch's
4. Best's
SUCCESS
, 3|Page
What does Best's Rating service rate? - correct answer✔️✔️they are the one rating
company that rates insurance companies instead of bonds
How are CDs issued? - correct answer✔️✔️in bearer form only
Where are CDs shown and for how long? - correct answer✔️✔️on Nasdaq with a
minimum duration of 14 days
How are CDs quoted? - correct answer✔️✔️in terms of yield
Who does not issue eurodollar deposits? - correct answer✔️✔️US government
What kind of taxes is the interest of corporate bonds subject to? - correct
answer✔️✔f️ ederal 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 answer✔️✔️ordinary income and capital gain
If a zero-coupon bondholder hold it until maturity they will have no? - correct
answer✔️✔️no capital gain
What type of muni note does not get rated by MIG because they are backed by a
government bond? - correct answer✔️✔️CLNs
What does a bond indenture NOT include? - correct answer✔️✔r️ e-offering yields
What is required before a revenue bond can be issued? - correct
answer✔️✔f️ easibility study and engineering report
SUCCESS
Series 7 Practice EXAM
GUIDE WITH 100% CORRECT
ANSWERS.
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 answer✔️✔️Amortization
In oil and gas limited partnerships is the risk greater in developmental or
exploratory programs? - correct answer✔️✔️exploratory
What is the best way to measure the GNP? (gross national product) - correct
answer✔️✔️constant dollars
What is the broker's role in the term "broker/dealer"? - correct
answer✔️✔️executing trades for client accounts
What is the maximum federal tax rate for corporations on their dividends and other
income? - correct answer✔️✔️35%
What is the maximum federal tax rate for individuals on their dividends and other
income? - correct answer✔️✔️20%
What type of securities are exempt from registration under the Securities Act of
1933? - correct answer✔️✔️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 answer✔️✔️It
is subtracted from the cost basis when the writer is assigned
SUCCESS
,2|Page
How much income must a REIT generate from the real estate properties? - correct
answer✔️✔️75%
How much must a REIT pass-through of its profits to investors? - correct
answer✔️✔️90%
A portfolio manager of a pension fund desires income but wants to protect the
porfolio. What option position would he make? - correct answer✔️✔️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 answer✔️✔️Fifth business day
Self-employed people can contribute how much to thier Keogh? - correct
answer✔️✔T ️ he 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 answer✔️✔️Buy Stop
order
When an investor buys a corporate bond, they have how many days to pay for it? -
correct answer✔️✔️3 business days
What are the rating agencies for ST, LT and Muni Debt Securities? - correct
answer✔️✔️1. S&P
2. Moody's
3. Fitch's
4. Best's
SUCCESS
, 3|Page
What does Best's Rating service rate? - correct answer✔️✔️they are the one rating
company that rates insurance companies instead of bonds
How are CDs issued? - correct answer✔️✔️in bearer form only
Where are CDs shown and for how long? - correct answer✔️✔️on Nasdaq with a
minimum duration of 14 days
How are CDs quoted? - correct answer✔️✔️in terms of yield
Who does not issue eurodollar deposits? - correct answer✔️✔️US government
What kind of taxes is the interest of corporate bonds subject to? - correct
answer✔️✔f️ ederal 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 answer✔️✔️ordinary income and capital gain
If a zero-coupon bondholder hold it until maturity they will have no? - correct
answer✔️✔️no capital gain
What type of muni note does not get rated by MIG because they are backed by a
government bond? - correct answer✔️✔️CLNs
What does a bond indenture NOT include? - correct answer✔️✔r️ e-offering yields
What is required before a revenue bond can be issued? - correct
answer✔️✔f️ easibility study and engineering report
SUCCESS
