FINRA SERIES 7 EXAM
(2026) (TESTING
ACTUAL EXAM
QUESTIONS) AND
VERIFIED ANSWERS
(MULTIPLE CHOICES)
||A+ GRADED |100%
CORRECT!!
STRIPSBmayBbeBattractiveBtoBinvestorsBforBwhichBofBtheBfollowingBreasons?
A.BTheyBofferBsemi-annualBinterestBpayments
B.BTheBsecuritiesBareBtax-freeBuntilBtheyBmature
C.BTheyBcarryBalmostBnoBreinvestmentBrisk
D.BTheyBareBofferedBatBonlyBaB20ByearBmaturityBwhichBisBaBmaturityBthatBisBnotBoffer
edBbyBtraditionalBTreasuryBsecuritiesB-
BAnswerC.BTheyBcarryBalmostBnoBreinvestmentBrisk
TheBAlternativeBMinimumBTaxB(AMT):
A.BAddsBbackBinBcertainB"taxBpreferenceBitems"BthatBareBdeductedBforBpurposesBofBre
gularBincomeBtax
B.BIsBdesignedBtoBensureBthatBresidentsBofBstatesBwithBhighBtaxesBdoBnotBpayBmoreBt
axBasBaBpercentageBofBincomeBthanBresidentsBofBstatesBwithBlowerBtaxes
C.BAffectsBbothBcorporateBandBindividualBincomeBtax
,D.BRequiresBaffectedBtaxpayersBtoBcalculateBtheirBincomeBtaxBinBtwoBwaysBandBpayBth
eBlowerBamountB-
BAnswerA.BAddsBbackBinBcertainB"taxBpreferenceBitems"BthatBareBdeductedBforBpurpos
esBofBregularBincomeBtax
ABwashBsaleBoccursBwhen:
A.BContemporaneousBpurchasesBareBmadeBforBtheBsameBsecurity
B.BABsaleBofBaBsecurityBatBaBcapitalBlossBoccursBfewerBthanB30BdaysBpriorBtoBtheBpurc
haseBofBtheBsameBorBaBsimilarBsecurity
C.BAnyBsaleBofBaBsecurityBoccursBwithinB30BdaysBofBaBpurchaseBofBtheBsameBorBaBsim
ilarBsecurity
D.BAnBinvestorBreportsBcapitalBgainsBandBlossesBforBsecuritiesBissuedBbyBtheBsameBco
mpanyBinBtheBsameBtaxByearB-
BAnswerB.BABsaleBofBaBsecurityBatBaBcapitalBlossBoccursBfewerBthanB30BdaysBpriorBtoB
theBpurchaseBofBtheBsameBorBaBsimilarBsecurity
403(b)BplansBareBavailableBtoBtheBfollowingBgroupsBofBpeople:
I.BGovernmentBemployees
II.BEmployeesBofBpublicBeducationalBinstitutions
III.BEmployeesBofBnonprofitBorganizations
IV.BSelf-employedBindividuals
A.BIIBandBIII
B.BIBandBII
C.BIBandBIV
D.BIIIBandBIVB-BAnswerA.BIIBandBIII
TheBwriterBofBaBputBhas:
,A.BTheBrightBtoBsell
B.BTheBobligationBtoBbuy
C.BTheBobligationBtoBsell
D.BTheBrightBtoBbuyB-BAnswerB.BTheBobligationBtoBbuy
seBonBthisBoption?
A.B$2,000
B.B$1,600
C.BUnlimited
D.B$400B-BAnswerB.B$1,600
ForBaBcallBoption,BtheBstrikeBpriceBis:
A.BTheBmarketBvalueBofBtheBunderlyingBsecurityBatBwhichBtheBoptionBmustBbeBexercis
ed
B.BTheBpriceBatBwhichBtheBcallBholderBcanBbuyBtheBunderlyingBsecurityBfromBtheBcallB
writer
C.BTheBpriceBatBwhichBtheBcallBwriterBmustBbuyBtheBunderlyingBsecuritiesBfromBtheBca
llBholder
D.BTheBbreakevenBpointBforBtheBholderBofBtheBoptionB-
BAnswerB.BTheBpriceBatBwhichBtheBcallBholderBcanBbuyBtheBunderlyingBsecurityBfromBt
heBcallBwriter
AnBintervalBfundBisBaBtypeBofBinvestmentBcompanyBthatBis:
A.BRedeemableBatBanyBtime
B.BMustBbeBpurchasedBinBperiodicBintervals
C.BHighlyBliquid
, D.BLegallyBclassifiedBasBaBclosed-endBfundB-BAnswerD.BLegallyBclassifiedBasBaBclosed-
endBfund
IntervalBfundsBareBaBtypeBofBinvestmentBcompanyBthatBoffersBhigherByieldsBbutBpermit
sBshareholdersBtoBsellBtheirBsharesBonlyBatBspecificBtimeBperiodsBorB"intervals."BLegally
BclassifiedBasBaBclosed-
endBfund,BintervalBfundsBshareBcharacteristicsBwithBmutualBfundsBsuchBasBtheBfactBtha
tBthereBisBnoBtradingBorBsecondaryBmarketBforBintervalBfunds;BinsteadBsharesBmustBbe
BpurchasedBandBsoldB(redeemed)BwithBtheBfund.BAnBinvestmentBinBanBintervalBfundBis
BmuchBlessBliquidBthanBsharesBinBotherBtypesBofBinvestmentBcompanies,BsuchBasBmut
ualBfunds,Bclosed-endBfunds,BandBETFs.
WhichBofBtheBfollowingBwouldByouBbeBtheBleastBinterestedBinBlookingBatBtoBanalyzeBa
BrevenueBbond?
A.BFlowBofBfunds
B.BNetBoverallBdebtBperBcapita
C.BProtectiveBcovenants
D.BFeasibilityBstudyB-BAnswerB.BNetBoverallBdebtBperBcapita
ABcorporateBbondBhasBaBcouponBrateBofB2.75%.BWhatBisBtheBamountBofBaBsingleBsem
iannualBinterestBpayment?
A.B$13.75
B.B$27.50
C.B$275.00
D.B$137.50B-BAnswerA.B$13.75
JoannaBisBaBregisteredBrepresentativeBwhoBworksBfromBherBvacationBhomeBoccasionally
.BWhatBisBtheBmaximumBnumberBofBbusinessBdaysBsheBcanBworkBfromBherBvacationBh
omeBwithoutBitBbeingBclassifiedBasBaBbranchBoffice?
(2026) (TESTING
ACTUAL EXAM
QUESTIONS) AND
VERIFIED ANSWERS
(MULTIPLE CHOICES)
||A+ GRADED |100%
CORRECT!!
STRIPSBmayBbeBattractiveBtoBinvestorsBforBwhichBofBtheBfollowingBreasons?
A.BTheyBofferBsemi-annualBinterestBpayments
B.BTheBsecuritiesBareBtax-freeBuntilBtheyBmature
C.BTheyBcarryBalmostBnoBreinvestmentBrisk
D.BTheyBareBofferedBatBonlyBaB20ByearBmaturityBwhichBisBaBmaturityBthatBisBnotBoffer
edBbyBtraditionalBTreasuryBsecuritiesB-
BAnswerC.BTheyBcarryBalmostBnoBreinvestmentBrisk
TheBAlternativeBMinimumBTaxB(AMT):
A.BAddsBbackBinBcertainB"taxBpreferenceBitems"BthatBareBdeductedBforBpurposesBofBre
gularBincomeBtax
B.BIsBdesignedBtoBensureBthatBresidentsBofBstatesBwithBhighBtaxesBdoBnotBpayBmoreBt
axBasBaBpercentageBofBincomeBthanBresidentsBofBstatesBwithBlowerBtaxes
C.BAffectsBbothBcorporateBandBindividualBincomeBtax
,D.BRequiresBaffectedBtaxpayersBtoBcalculateBtheirBincomeBtaxBinBtwoBwaysBandBpayBth
eBlowerBamountB-
BAnswerA.BAddsBbackBinBcertainB"taxBpreferenceBitems"BthatBareBdeductedBforBpurpos
esBofBregularBincomeBtax
ABwashBsaleBoccursBwhen:
A.BContemporaneousBpurchasesBareBmadeBforBtheBsameBsecurity
B.BABsaleBofBaBsecurityBatBaBcapitalBlossBoccursBfewerBthanB30BdaysBpriorBtoBtheBpurc
haseBofBtheBsameBorBaBsimilarBsecurity
C.BAnyBsaleBofBaBsecurityBoccursBwithinB30BdaysBofBaBpurchaseBofBtheBsameBorBaBsim
ilarBsecurity
D.BAnBinvestorBreportsBcapitalBgainsBandBlossesBforBsecuritiesBissuedBbyBtheBsameBco
mpanyBinBtheBsameBtaxByearB-
BAnswerB.BABsaleBofBaBsecurityBatBaBcapitalBlossBoccursBfewerBthanB30BdaysBpriorBtoB
theBpurchaseBofBtheBsameBorBaBsimilarBsecurity
403(b)BplansBareBavailableBtoBtheBfollowingBgroupsBofBpeople:
I.BGovernmentBemployees
II.BEmployeesBofBpublicBeducationalBinstitutions
III.BEmployeesBofBnonprofitBorganizations
IV.BSelf-employedBindividuals
A.BIIBandBIII
B.BIBandBII
C.BIBandBIV
D.BIIIBandBIVB-BAnswerA.BIIBandBIII
TheBwriterBofBaBputBhas:
,A.BTheBrightBtoBsell
B.BTheBobligationBtoBbuy
C.BTheBobligationBtoBsell
D.BTheBrightBtoBbuyB-BAnswerB.BTheBobligationBtoBbuy
seBonBthisBoption?
A.B$2,000
B.B$1,600
C.BUnlimited
D.B$400B-BAnswerB.B$1,600
ForBaBcallBoption,BtheBstrikeBpriceBis:
A.BTheBmarketBvalueBofBtheBunderlyingBsecurityBatBwhichBtheBoptionBmustBbeBexercis
ed
B.BTheBpriceBatBwhichBtheBcallBholderBcanBbuyBtheBunderlyingBsecurityBfromBtheBcallB
writer
C.BTheBpriceBatBwhichBtheBcallBwriterBmustBbuyBtheBunderlyingBsecuritiesBfromBtheBca
llBholder
D.BTheBbreakevenBpointBforBtheBholderBofBtheBoptionB-
BAnswerB.BTheBpriceBatBwhichBtheBcallBholderBcanBbuyBtheBunderlyingBsecurityBfromBt
heBcallBwriter
AnBintervalBfundBisBaBtypeBofBinvestmentBcompanyBthatBis:
A.BRedeemableBatBanyBtime
B.BMustBbeBpurchasedBinBperiodicBintervals
C.BHighlyBliquid
, D.BLegallyBclassifiedBasBaBclosed-endBfundB-BAnswerD.BLegallyBclassifiedBasBaBclosed-
endBfund
IntervalBfundsBareBaBtypeBofBinvestmentBcompanyBthatBoffersBhigherByieldsBbutBpermit
sBshareholdersBtoBsellBtheirBsharesBonlyBatBspecificBtimeBperiodsBorB"intervals."BLegally
BclassifiedBasBaBclosed-
endBfund,BintervalBfundsBshareBcharacteristicsBwithBmutualBfundsBsuchBasBtheBfactBtha
tBthereBisBnoBtradingBorBsecondaryBmarketBforBintervalBfunds;BinsteadBsharesBmustBbe
BpurchasedBandBsoldB(redeemed)BwithBtheBfund.BAnBinvestmentBinBanBintervalBfundBis
BmuchBlessBliquidBthanBsharesBinBotherBtypesBofBinvestmentBcompanies,BsuchBasBmut
ualBfunds,Bclosed-endBfunds,BandBETFs.
WhichBofBtheBfollowingBwouldByouBbeBtheBleastBinterestedBinBlookingBatBtoBanalyzeBa
BrevenueBbond?
A.BFlowBofBfunds
B.BNetBoverallBdebtBperBcapita
C.BProtectiveBcovenants
D.BFeasibilityBstudyB-BAnswerB.BNetBoverallBdebtBperBcapita
ABcorporateBbondBhasBaBcouponBrateBofB2.75%.BWhatBisBtheBamountBofBaBsingleBsem
iannualBinterestBpayment?
A.B$13.75
B.B$27.50
C.B$275.00
D.B$137.50B-BAnswerA.B$13.75
JoannaBisBaBregisteredBrepresentativeBwhoBworksBfromBherBvacationBhomeBoccasionally
.BWhatBisBtheBmaximumBnumberBofBbusinessBdaysBsheBcanBworkBfromBherBvacationBh
omeBwithoutBitBbeingBclassifiedBasBaBbranchBoffice?
