Series 7 Practice Questions WITH
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
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
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
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
