STC Series 7 Progress Exam 2B 2025
With 100% Correct Answers
A customer purchases a municipal bond at $960 in the secondary market that will mature in
four years. Which of the following statements regarding the purchase is NOT TRUE? - CORRECT
ANSWER✔✔The customer will need to pay a tax on the prorated amount of the discount each
year.
Which of the following is the highest S&P speculative grade bond rating? - CORRECT
ANSWER✔✔BB
An auction rate security (ARS) is a type of investment that has its interest rate or dividend rate
reset periodically. The reset rate is referred to as the: - CORRECT ANSWER✔✔The clearing rate
Private label CMOs are more likely than government-sponsored CMOs to be subject to which of
the following risks? - CORRECT ANSWER✔✔Credit
A customer is most interested in safety of principal and wants to avoid risk. List the securities
that should be recommended to the customer from those with the LEAST risk to those with the
MOST risk. - CORRECT ANSWER✔✔Treasury bills, Treasury notes, general obligation bonds,
revenue bonds
If Dealer A offers bonds on a firm basis to Dealer B with a recall, which of the following
statements is NOT TRUE? - CORRECT ANSWER✔✔A time to sell the bonds has not been set.
An announcement in The Wall Street Journal states that New York State plans an advance
refunding of its 7 1/2% Dormitory Bonds through the issuance of a special $50,000,000 bond
issue. This means that: - CORRECT ANSWER✔✔Proceeds from the sale of a new bond issue will
be put in an escrow account to retire the existing bond issue
With 100% Correct Answers
A customer purchases a municipal bond at $960 in the secondary market that will mature in
four years. Which of the following statements regarding the purchase is NOT TRUE? - CORRECT
ANSWER✔✔The customer will need to pay a tax on the prorated amount of the discount each
year.
Which of the following is the highest S&P speculative grade bond rating? - CORRECT
ANSWER✔✔BB
An auction rate security (ARS) is a type of investment that has its interest rate or dividend rate
reset periodically. The reset rate is referred to as the: - CORRECT ANSWER✔✔The clearing rate
Private label CMOs are more likely than government-sponsored CMOs to be subject to which of
the following risks? - CORRECT ANSWER✔✔Credit
A customer is most interested in safety of principal and wants to avoid risk. List the securities
that should be recommended to the customer from those with the LEAST risk to those with the
MOST risk. - CORRECT ANSWER✔✔Treasury bills, Treasury notes, general obligation bonds,
revenue bonds
If Dealer A offers bonds on a firm basis to Dealer B with a recall, which of the following
statements is NOT TRUE? - CORRECT ANSWER✔✔A time to sell the bonds has not been set.
An announcement in The Wall Street Journal states that New York State plans an advance
refunding of its 7 1/2% Dormitory Bonds through the issuance of a special $50,000,000 bond
issue. This means that: - CORRECT ANSWER✔✔Proceeds from the sale of a new bond issue will
be put in an escrow account to retire the existing bond issue
