FINRA SERIES 7 Exam Newest 2025/2026 With
Complete Questions And Correct Answers |Already
Graded A+||Brand New Version!|
Which of the following investment types would be least suitable for an investor who has
liquidity as a primary investing goal?
A. Common stock issued by a small-cap company
B. Shares issued by a mutual fund
C. Securities issued under Regulation D
D. Securities issued under Regulation A - answers :-C. Securities issued under Regulation D
Which of the following would generally occur as a result of an economic downturn?
I. Increasing foreign trade deficits
II. Declining Producer Price Index
III. Increase in non-farm payroll
IV. Declining unemployment
A. I and II
B. I and IV
C. II and III
D. III and IV - answers :-A. I and II
Pat has an IRA, and so does Pat's non-working spouse. They are both 50 years of age. How much
may Pat contribute in total to the two IRAs?
,A. $7,000
B. $12,000
C. $6,000
D. $14,000 - answers :-D. $14,000
When a registered person ends his service with a broker-dealer, the firm must file which of the
following forms with FINRA?
A. Form U-5
B. Form CRD
C. Form U-4
D. Form BD - answers :-A. Form U-5
Which of the following employees of BB Brokerage must register with FINRA?
A. Janet, who works in a clerical capacity
B. Micah, who works in customer service but who sometimes accepts securities orders
C. Kathleen, who works in IT
D. Reba, who serves as general counsel and does not supervise other employees - answers :-B.
Micah, who works in customer service but who sometimes accepts securities orders
How does the discount rate differ from the Federal Funds rate?
A. The discount rate is only applied to loans offered by the Fed
B. The discount rate is set by the Federal Reserve Bank
C. The discount rate is not used by banks as a regular source of funding
D. All of the above - answers :-D. All of the above
,Which of the following equations is correct?
A. Outstanding shares - treasury shares = issued shares
B. Outstanding shares = issued shares + treasury shares
C. Outstanding shares - issued shares = treasury shares
D. Outstanding shares = issued shares - treasury shares - answers :-D. Outstanding shares =
issued shares - treasury shares
Which of the following would be considered a violation of FINRA's prohibition of outside
business activities?
A. Without notifying his employer in advance, the registered representative earns $200 house-
sitting his neighbor's house whenever his neighbor goes out of town for long business trips
B. The registered representative invests $5,000 in a Direct Participation Program
C. All of these are considered violations
D. The registered representative invests $25,000 in a limited partnership outside of his state of
residence - answers :-A. Without notifying his employer in advance, the registered
representative earns $200 house-sitting his neighbor's house whenever his neighbor goes out of
town for long business trips
A convertible bond has a conversion price of $20. The bond contains a non-dilutive covenant. A
2 for 1 stock split has just occurred. Which of the following is true?
A. The conversion price will stay the same
B. The conversion price will be affected, but it is impossible to say whether it will increase or
decrease
C. The conversion price will decrease
, D. The conversion price will increase - answers :-C. The conversion price will decrease
Which of these characteristics of a margin account does not change as a result of market
fluctuations?
A. LMV
B. Debit balance
C. Equity
D. SMV - answers :-B. Debit balance
A municipal bond that is offered at a yield-to-maturity lower than its coupon rate is recognized
as trading:
A. At par
B. At a premium
C. At a discount
D. At its yield-to-worst - answers :-B. At a premium
Mary is an investor in her thirties. She makes $50,000 a year and is hoping to find an investment
that will provide capital appreciation. At the same time, she would not mind supplementing her
income by receiving regular income payments from her investment. Which of the following
would be most suitable for her?
A. A municipal bond fund
B. A small-cap stock fund
C. A growth and income fund
D. Penny stocks - answers :-C. A growth and income fund
Complete Questions And Correct Answers |Already
Graded A+||Brand New Version!|
Which of the following investment types would be least suitable for an investor who has
liquidity as a primary investing goal?
A. Common stock issued by a small-cap company
B. Shares issued by a mutual fund
C. Securities issued under Regulation D
D. Securities issued under Regulation A - answers :-C. Securities issued under Regulation D
Which of the following would generally occur as a result of an economic downturn?
I. Increasing foreign trade deficits
II. Declining Producer Price Index
III. Increase in non-farm payroll
IV. Declining unemployment
A. I and II
B. I and IV
C. II and III
D. III and IV - answers :-A. I and II
Pat has an IRA, and so does Pat's non-working spouse. They are both 50 years of age. How much
may Pat contribute in total to the two IRAs?
,A. $7,000
B. $12,000
C. $6,000
D. $14,000 - answers :-D. $14,000
When a registered person ends his service with a broker-dealer, the firm must file which of the
following forms with FINRA?
A. Form U-5
B. Form CRD
C. Form U-4
D. Form BD - answers :-A. Form U-5
Which of the following employees of BB Brokerage must register with FINRA?
A. Janet, who works in a clerical capacity
B. Micah, who works in customer service but who sometimes accepts securities orders
C. Kathleen, who works in IT
D. Reba, who serves as general counsel and does not supervise other employees - answers :-B.
Micah, who works in customer service but who sometimes accepts securities orders
How does the discount rate differ from the Federal Funds rate?
A. The discount rate is only applied to loans offered by the Fed
B. The discount rate is set by the Federal Reserve Bank
C. The discount rate is not used by banks as a regular source of funding
D. All of the above - answers :-D. All of the above
,Which of the following equations is correct?
A. Outstanding shares - treasury shares = issued shares
B. Outstanding shares = issued shares + treasury shares
C. Outstanding shares - issued shares = treasury shares
D. Outstanding shares = issued shares - treasury shares - answers :-D. Outstanding shares =
issued shares - treasury shares
Which of the following would be considered a violation of FINRA's prohibition of outside
business activities?
A. Without notifying his employer in advance, the registered representative earns $200 house-
sitting his neighbor's house whenever his neighbor goes out of town for long business trips
B. The registered representative invests $5,000 in a Direct Participation Program
C. All of these are considered violations
D. The registered representative invests $25,000 in a limited partnership outside of his state of
residence - answers :-A. Without notifying his employer in advance, the registered
representative earns $200 house-sitting his neighbor's house whenever his neighbor goes out of
town for long business trips
A convertible bond has a conversion price of $20. The bond contains a non-dilutive covenant. A
2 for 1 stock split has just occurred. Which of the following is true?
A. The conversion price will stay the same
B. The conversion price will be affected, but it is impossible to say whether it will increase or
decrease
C. The conversion price will decrease
, D. The conversion price will increase - answers :-C. The conversion price will decrease
Which of these characteristics of a margin account does not change as a result of market
fluctuations?
A. LMV
B. Debit balance
C. Equity
D. SMV - answers :-B. Debit balance
A municipal bond that is offered at a yield-to-maturity lower than its coupon rate is recognized
as trading:
A. At par
B. At a premium
C. At a discount
D. At its yield-to-worst - answers :-B. At a premium
Mary is an investor in her thirties. She makes $50,000 a year and is hoping to find an investment
that will provide capital appreciation. At the same time, she would not mind supplementing her
income by receiving regular income payments from her investment. Which of the following
would be most suitable for her?
A. A municipal bond fund
B. A small-cap stock fund
C. A growth and income fund
D. Penny stocks - answers :-C. A growth and income fund
