Series 7 Practice Questions with correct answers 2024\2025
GradeA+
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
,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 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 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
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 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 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 re-offering yields
What is required before a revenue bond can be issued?
- correct answer feasibility study and engineering report
What must a muni bond being issued obtain from a bond counsel?
- correct answer legal opinion
GradeA+
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
,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 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 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
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 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 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 re-offering yields
What is required before a revenue bond can be issued?
- correct answer feasibility study and engineering report
What must a muni bond being issued obtain from a bond counsel?
- correct answer legal opinion
