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FINRA SERIES 7 Exam Newest 2025/2026 With Complete Questions
And Correct Answers |Already Graded A+||Brand New Version!|
Which of the following is a difference between a variable and a fixed annuity?
A. the safety of the insurance company
B. the use of a separate account versus general account
C. only fixed annuities offer period certain payouts
D. the availability of a fixed interest option - ANSWER=B. the use of a separate account versus
general account
What is a mutual fund's load?
A. The net asset value per share
B. A discount for buying a certain number of shares
C. The net asset value of the entire fund
D. A sales charge paid by the shareholder - ANSWER=D. A sales charge paid by the shareholder
The piece of legislation that requires broker-dealers to register with the SEC is known as the:
A. Investment Company Act of 1940
B. Securities Exchange Act of 1934
C. Investment Advisers Act of 1940
D. Securities Act of 1933 - ANSWER=B. Securities Exchange Act of 1934
A competitive underwriting:
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A. Always provides for the lowest underwriting risk
B. Allows for substantial pre-selling because a syndicate or selling group can be chosen early in
the process
C. Is the most common type of corporate underwriting
D. Is one in which an issuer solicits bids and chooses an underwriter based on the lowest cost -
ANSWER=D. Is one in which an issuer solicits bids and chooses an underwriter based on the
lowest cost
STRIPS may be attractive to investors for which of the following reasons?
A. They offer semi-annual interest payments
B. The securities are tax-free until they mature
C. They carry almost no reinvestment risk
D. They are offered at only a 20 year maturity which is a maturity that is not offered by
traditional Treasury securities - ANSWER=C. They carry almost no reinvestment risk
The Alternative Minimum Tax (AMT):
A. Adds back in certain "tax preference items" that are deducted for purposes of regular income
tax
B. Is designed to ensure that residents of states with high taxes do not pay more tax as a
percentage of income than residents of states with lower taxes
C. Affects both corporate and individual income tax
D. Requires affected taxpayers to calculate their income tax in two ways and pay the lower
amount - ANSWER=A. Adds back in certain "tax preference items" that are deducted for
purposes of regular income tax
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A wash sale occurs when:
A. Contemporaneous purchases are made for the same security
B. A sale of a security at a capital loss occurs fewer than 30 days prior to the purchase of the
same or a similar security
C. Any sale of a security occurs within 30 days of a purchase of the same or a similar security
D. An investor reports capital gains and losses for securities issued by the same company in the
same tax year - ANSWER=B. A sale of a security at a capital loss occurs fewer than 30 days prior
to the purchase of the same or a similar security
403(b) plans are available to the following groups of people:
I. Government employees
II. Employees of public educational institutions
III. Employees of nonprofit organizations
IV. Self-employed individuals
A. II and III
B. I and II
C. I and IV
D. III and IV - ANSWER=A. II and III
The writer of a put has:
A. The right to sell
B. The obligation to buy
C. The obligation to sell
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D. The right to buy - ANSWER=B. The obligation to buy
Marilyn writes an ABC Aug20 put @ 4. What is the maximum amount she could lose on this
option?
A. $2,000
B. $1,600
C. Unlimited
D. $400 - ANSWER=B. $1,600
For a call option, the strike price is:
A. The market value of the underlying security at which the option must be exercised
B. The price at which the call holder can buy the underlying security from the call writer
C. The price at which the call writer must buy the underlying securities from the call holder
D. The breakeven point for the holder of the option - ANSWER=B. The price at which the call
holder can buy the underlying security from the call writer
Retail Communication Regarding Options Must - ANSWER=Be submitted to the firms options
regulator (an exchange or FINRA) for approval at least 10 days prior to initial use. All retail
communications must be maintained on file by the member firm for three years.
What is the maximum sales charge on a variable annuity? - ANSWER=There is no statutory
maximum sales charge on variable annuities or variable life insurance. The sales charges must
be fair and reasonable.
Keynesian Economic Theory - ANSWER=Looks at the demand side of the marketplace. States
that government intervention in the marketplace is necessary for controlling the economy.
FINRA SERIES 7 Exam Newest 2025/2026 With Complete Questions
And Correct Answers |Already Graded A+||Brand New Version!|
Which of the following is a difference between a variable and a fixed annuity?
A. the safety of the insurance company
B. the use of a separate account versus general account
C. only fixed annuities offer period certain payouts
D. the availability of a fixed interest option - ANSWER=B. the use of a separate account versus
general account
What is a mutual fund's load?
A. The net asset value per share
B. A discount for buying a certain number of shares
C. The net asset value of the entire fund
D. A sales charge paid by the shareholder - ANSWER=D. A sales charge paid by the shareholder
The piece of legislation that requires broker-dealers to register with the SEC is known as the:
A. Investment Company Act of 1940
B. Securities Exchange Act of 1934
C. Investment Advisers Act of 1940
D. Securities Act of 1933 - ANSWER=B. Securities Exchange Act of 1934
A competitive underwriting:
,2|Page
A. Always provides for the lowest underwriting risk
B. Allows for substantial pre-selling because a syndicate or selling group can be chosen early in
the process
C. Is the most common type of corporate underwriting
D. Is one in which an issuer solicits bids and chooses an underwriter based on the lowest cost -
ANSWER=D. Is one in which an issuer solicits bids and chooses an underwriter based on the
lowest cost
STRIPS may be attractive to investors for which of the following reasons?
A. They offer semi-annual interest payments
B. The securities are tax-free until they mature
C. They carry almost no reinvestment risk
D. They are offered at only a 20 year maturity which is a maturity that is not offered by
traditional Treasury securities - ANSWER=C. They carry almost no reinvestment risk
The Alternative Minimum Tax (AMT):
A. Adds back in certain "tax preference items" that are deducted for purposes of regular income
tax
B. Is designed to ensure that residents of states with high taxes do not pay more tax as a
percentage of income than residents of states with lower taxes
C. Affects both corporate and individual income tax
D. Requires affected taxpayers to calculate their income tax in two ways and pay the lower
amount - ANSWER=A. Adds back in certain "tax preference items" that are deducted for
purposes of regular income tax
,3|Page
A wash sale occurs when:
A. Contemporaneous purchases are made for the same security
B. A sale of a security at a capital loss occurs fewer than 30 days prior to the purchase of the
same or a similar security
C. Any sale of a security occurs within 30 days of a purchase of the same or a similar security
D. An investor reports capital gains and losses for securities issued by the same company in the
same tax year - ANSWER=B. A sale of a security at a capital loss occurs fewer than 30 days prior
to the purchase of the same or a similar security
403(b) plans are available to the following groups of people:
I. Government employees
II. Employees of public educational institutions
III. Employees of nonprofit organizations
IV. Self-employed individuals
A. II and III
B. I and II
C. I and IV
D. III and IV - ANSWER=A. II and III
The writer of a put has:
A. The right to sell
B. The obligation to buy
C. The obligation to sell
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D. The right to buy - ANSWER=B. The obligation to buy
Marilyn writes an ABC Aug20 put @ 4. What is the maximum amount she could lose on this
option?
A. $2,000
B. $1,600
C. Unlimited
D. $400 - ANSWER=B. $1,600
For a call option, the strike price is:
A. The market value of the underlying security at which the option must be exercised
B. The price at which the call holder can buy the underlying security from the call writer
C. The price at which the call writer must buy the underlying securities from the call holder
D. The breakeven point for the holder of the option - ANSWER=B. The price at which the call
holder can buy the underlying security from the call writer
Retail Communication Regarding Options Must - ANSWER=Be submitted to the firms options
regulator (an exchange or FINRA) for approval at least 10 days prior to initial use. All retail
communications must be maintained on file by the member firm for three years.
What is the maximum sales charge on a variable annuity? - ANSWER=There is no statutory
maximum sales charge on variable annuities or variable life insurance. The sales charges must
be fair and reasonable.
Keynesian Economic Theory - ANSWER=Looks at the demand side of the marketplace. States
that government intervention in the marketplace is necessary for controlling the economy.
