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Series 7 Practice Exam Guide With 100% Correct Answers.

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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 answer️️Amortization In oil and gas limited partnerships is the risk greater in developmental or exploratory programs? - correct answer️️exploratory What is the best way to measure the GNP? (gross national product) - correct answer️️constant dollars What is the broker's role in the term "broker/dealer"? - correct answer️️executing trades for client accounts What is the maximum federal tax rate for corporations on their dividends and other income? - correct answer️️35% What is the maximum federal tax rate for individuals on their dividends and other income? - correct answer️️20% What type of securities are exempt from registration under the Securities Act of 1933? - correct answer️️government 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 answer️️It is subtracted from the cost basis when the writer is assigned How much income must a REIT generate from the real estate properties? - correct answer️️75% How much must a REIT pass-through of its profits to investors? - correct answer️️90% A portfolio manager of a pension fund desires income but wants to protect the porfolio. What option position would he make? - correct answer️️Write 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 answer️️Fifth business day Self-employed people can contribute how much to thier Keogh? - correct answer️️The 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 answer️️Buy Stop order When an investor buys a corporate bond, they have how many days to pay for it? - correct answer️️3 business days What are the rating agencies for ST, LT and Muni Debt Securities? - correct answer️️1. S&P 2. Moody's 3. Fitch's 4. Best's What does Best's Rating service rate? - correct answer️️they are the one rating company that rates insurance companies instead of bonds How are CDs issued? - correct answer️️in bearer form only Where are CDs shown and for how long? - correct answer️️on Nasdaq with a minimum duration of 14 days How are CDs quoted? - correct answer️️in terms of yield Who does not issue eurodollar deposits? - correct answer️️US government What kind of taxes is the interest of corporate bonds subject to? - correct answer️️federal 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 answer️️ordinary income and capital gain If a zero-coupon bondholder hold it until maturity they will have no? - correct answer️️no capital gain What type of muni note does not get rated by MIG because they are backed by a government bond? - correct answer️️CLNs What does a bond indenture NOT include? - correct answer️️re-offering yields

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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


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,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


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, 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

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