Series Final STC Exam 2025 With
100% Correct Answers
The system used to report municipal securities transactions is called: - CORRECT
ANSWER✔✔Real-Time Transaction reporting system
In a municipal issue, what is a group order? - CORRECT ANSWER✔✔An order allowing all
members to benefit
A CMO would be suitable for an investor seeking: - CORRECT ANSWER✔✔Monthly income,
assuming he does not need the entire principal returned at maturity
A municipal securities representative does an analysis of an official statement and prepares a
summary report. The report must be approved by: - CORRECT ANSWER✔✔A municipal
securities principal
An option that is about to expire will automatically be exercised by the OCC if no instructions
are given and if it is in the money by at least...? - CORRECT ANSWER✔✔one cent
A web site is being designed for a RR of a member firm. Which two of the following statements
are true regarding the design of this website? - CORRECT ANSWER✔✔1. The RR firm name must
be displayed
2. A reference to FINRA membership is permitted
Which of the following statements is TRUE concerning ECNs? - CORRECT ANSWER✔✔They can
be used to obtain automatic execution
,If a customer places an order to buy bonds at 104 net, it indicates that the customer: - CORRECT
ANSWER✔✔Wants to pay a maximum of 104 including any markup or commission
Which TWO of the following events may be reasons for a revenue bond issue to be called? -
CORRECT ANSWER✔✔1. There is a change in the tax status of the issuer
2. The facility is destroyed by fire
A municipal bond swap may be executed to: - CORRECT ANSWER✔✔1. Establish a loss for tax
purposes
2. Increase cash flow
3. Improve maturities
4. Improve yields
A put option may be written in a cash account if the investor: - CORRECT ANSWER✔✔Has a cash
balance in the account equal to the total exercise value of the contract
Long-term certificates of deposit (CDs) have which of the following characteristics? - CORRECT
ANSWER✔✔They may be sold prior to maturity at a price that is different from the client's
original cost
Which of the following items is NOT found by reviewing a company's balance sheet? - CORRECT
ANSWER✔✔The amount of interest paid on the company's bonds outstanding
Which of the following statements is NOT TRUE regarding an SEP IRA? - CORRECT
ANSWER✔✔Employees are permitted to make contributions to the account
Which of the following securities are based on the credit rating of the issuer? - CORRECT
ANSWER✔✔ETNs
, The purchaser of a variable life insurance policy bears which of the following risk? - CORRECT
ANSWER✔✔The policy may have no cash value if the separate account performance is negative
Mr. Jones has a margin account in which there is activity each month. The firm sends Mr. Jones
an account statement: - CORRECT ANSWER✔✔Each month when there is activity during the
month
Buyers of municipal bonds would normally NOT include - CORRECT ANSWER✔✔Defined benefit
plans (pension funds)
If convertible bondholders convert their bonds into the common stock of a corporation, the
effect on the balance sheet of the corporation will be: - CORRECT ANSWER✔✔1. A decrease in
total liabilities
2. An increase in stockholders' equity
Which of the following choices BEST describes Eurodollars? - CORRECT ANSWER✔✔US dollars
on deposit in foreign banks
A registered options principal (ROP) must review: - CORRECT ANSWER✔✔1. Retail
communication concerning options
2. General options prospecting letters
3. Options seminar transcripts
4. Allocation of exercise notices
Which of the following terms are synonymous - CORRECT ANSWER✔✔Net asset value and
redemption price
A secondary market exists for: - CORRECT ANSWER✔✔Dealer-placed commercial paper
100% Correct Answers
The system used to report municipal securities transactions is called: - CORRECT
ANSWER✔✔Real-Time Transaction reporting system
In a municipal issue, what is a group order? - CORRECT ANSWER✔✔An order allowing all
members to benefit
A CMO would be suitable for an investor seeking: - CORRECT ANSWER✔✔Monthly income,
assuming he does not need the entire principal returned at maturity
A municipal securities representative does an analysis of an official statement and prepares a
summary report. The report must be approved by: - CORRECT ANSWER✔✔A municipal
securities principal
An option that is about to expire will automatically be exercised by the OCC if no instructions
are given and if it is in the money by at least...? - CORRECT ANSWER✔✔one cent
A web site is being designed for a RR of a member firm. Which two of the following statements
are true regarding the design of this website? - CORRECT ANSWER✔✔1. The RR firm name must
be displayed
2. A reference to FINRA membership is permitted
Which of the following statements is TRUE concerning ECNs? - CORRECT ANSWER✔✔They can
be used to obtain automatic execution
,If a customer places an order to buy bonds at 104 net, it indicates that the customer: - CORRECT
ANSWER✔✔Wants to pay a maximum of 104 including any markup or commission
Which TWO of the following events may be reasons for a revenue bond issue to be called? -
CORRECT ANSWER✔✔1. There is a change in the tax status of the issuer
2. The facility is destroyed by fire
A municipal bond swap may be executed to: - CORRECT ANSWER✔✔1. Establish a loss for tax
purposes
2. Increase cash flow
3. Improve maturities
4. Improve yields
A put option may be written in a cash account if the investor: - CORRECT ANSWER✔✔Has a cash
balance in the account equal to the total exercise value of the contract
Long-term certificates of deposit (CDs) have which of the following characteristics? - CORRECT
ANSWER✔✔They may be sold prior to maturity at a price that is different from the client's
original cost
Which of the following items is NOT found by reviewing a company's balance sheet? - CORRECT
ANSWER✔✔The amount of interest paid on the company's bonds outstanding
Which of the following statements is NOT TRUE regarding an SEP IRA? - CORRECT
ANSWER✔✔Employees are permitted to make contributions to the account
Which of the following securities are based on the credit rating of the issuer? - CORRECT
ANSWER✔✔ETNs
, The purchaser of a variable life insurance policy bears which of the following risk? - CORRECT
ANSWER✔✔The policy may have no cash value if the separate account performance is negative
Mr. Jones has a margin account in which there is activity each month. The firm sends Mr. Jones
an account statement: - CORRECT ANSWER✔✔Each month when there is activity during the
month
Buyers of municipal bonds would normally NOT include - CORRECT ANSWER✔✔Defined benefit
plans (pension funds)
If convertible bondholders convert their bonds into the common stock of a corporation, the
effect on the balance sheet of the corporation will be: - CORRECT ANSWER✔✔1. A decrease in
total liabilities
2. An increase in stockholders' equity
Which of the following choices BEST describes Eurodollars? - CORRECT ANSWER✔✔US dollars
on deposit in foreign banks
A registered options principal (ROP) must review: - CORRECT ANSWER✔✔1. Retail
communication concerning options
2. General options prospecting letters
3. Options seminar transcripts
4. Allocation of exercise notices
Which of the following terms are synonymous - CORRECT ANSWER✔✔Net asset value and
redemption price
A secondary market exists for: - CORRECT ANSWER✔✔Dealer-placed commercial paper
