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FINRA Series-7 - Series 7 General Securities Representative Qualification Examination (GS)

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Page: 12 / 12
Total 400 questions

A management group may serve an investment company as its:

A.

underwriter

B.

custodian

C.

investment advisor

D.

both A and C

When does a call option provide the most value to its holder?

A.

when the underlying stock is extremely volatile

B.

in the month prior to its expiration

C.

when there is a large open interest in that class of option

D.

when the underlying stock price is rising

After an extended period of backing and filling, a stock moves up sharply through a resistance level on heavy volume. A technical analyst would likely call this a:

A.

buy-in

B.

technical rally

C.

buying climax

D.

breakout

When a member firm buys or sells securities directly as principal with a public customer, it is acting as:

A.

a dealer

B.

a broker

C.

an agent

D.

none of the above

The accounting statement that represents a company’s financial position on a particular date is the:

A.

income statement

B.

balance sheet

C.

Profit and Loss

D.

cash flow statement

Regulation T is set at 50%. Bubba’s account contains long positions in the following securities with the prices listed:

100 ABC $30

200 XYZ $70

200 QBB $40

200 KKK $25

Total market value = $30,000

Debit balance in the account = $12,000

Net equity balance of the account = $18,000

Bubba wants to buy 100 shares of DUM at $30 per share and 100 shares of OUT at $120. How much additional money must be deposited?

A.

$6,000

B.

$7,000

C.

$4,500

D.

$1,500

Which of the following is not an attribute of US treasury bills?

A.

an unusually high degree of liquidity

B.

always sells at a discount to face value

C.

is most often issued with three-month, six-month, and one-year maturities

D.

interest is exempt from federal income taxes

A four-letter symbol assigned to an issue is characteristic of an equity security that is:

A.

authorized for inclusion in the NASDAQ system

B.

listed on the NYSE

C.

admitted to unlisted trading privileges on a regional stock exchange

D.

trading in less than 100-share units on the American Stock Exchange

Municipal bond brokers generally conduct the following:

A.

trade for dealer banks

B.

trade for non-bank dealers

C.

trade for their own account

D.

both A and B

Under what circumstances may a registered investment company change its investment objective?

A.

after SEC approval

B.

after it obtains a new charter from the state secretary

C.

after approval by a majority vote of the shareholders

D.

after providing notice that is recorded in the Federal Register