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FINRA Series7 Practice Q&A's

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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers9%- Customer acquisition and prospecting
  • 1. Business development activities
  • 2. Communications with the public
Topic 2: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Investment products
  • 1. Debt securities
  • 2. Investment companies and variable products
  • 3. Government securities
  • 4. Municipal securities
  • 5. Equity securities
  • 6. Options
  • 7. Direct participation programs
- Customer recommendations and transactions
  • 1. Portfolio and risk considerations
  • 2. Suitability and best interest obligations
  • 3. Asset transfers and record maintenance
Topic 3: Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions7%- Trade execution and settlement
  • 1. Settlement and confirmations
  • 2. Trade processing
  • 3. Books and records requirements
  • 4. Order handling
Topic 4: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives11%- Customer accounts and documentation
  • 1. Account types and registrations
  • 2. Suitability and customer profile
  • 3. Customer identification requirements

FINRA General Securities Representative Examination (GS) Sample Questions:

1. Mutual fund salespersons may not represent that a product is like of safer than:

A) a fixed annuity
B) an insurance policy
C) a corporate debt instrument
D) all of the above


2. Bubba Corporation issued bonds that pay interest on January 15 and July 15 each year until maturity. An
investor purchasing these bonds on Monday, April 12, must pay the contract price plus accrued interest
for:

A) 93 days
B) 87 days
C) 90 days
D) 89 days


3. Creditors whose claims are not settled upon dissolution of a limited partnership may seek recourse from:

A) the general partner's personal assets
B) the partnership's income
C) the personal assets of the limited partners
D) the general partner's profits


4. Which of the following forms of underwriting is least likely for an offering of municipal bonds?

A) firm commitment
B) competitive bid
C) negotiated
D) best efforts


5. Big Easy Investment Banking, Inc., participates in a Western account underwriting of $10 million of
municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold
but Big Easy has distributed $1.5 million of bonds. What is the liability of Big Easy remaining in the
account?

A) $1,000,000
B) $0
C) $600,000
D) $400,000


Solutions:

Question # 1
Answer: D
Question # 2
Answer: C
Question # 3
Answer: A
Question # 4
Answer: D
Question # 5
Answer: A

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