FINRA Series 7 Exam Practice Test 18

1. Which of the following are needed to open a margin account for a corporation?

I. Corporate charter and resolution

II. New account form

III. Hypothecation agreement

IV. Credit agreement

2. The Municipal Bond Index is

3. Which of the following oil and gas DPPs has the highest capital appreciation potential?

4. Martina Martin is new to investing but has determined that her primary objective is making sure that she is prepared for retirement. Which of the following is the MOST important factor for you to consider when helping her set up her investment portfolio?

5. Ayla K. has a short margin account with a market value of $30,000. What is the minimum maintenance for the account?

6. Which of the following is rated by most securities rating services?

7. Under federal law, stock CANNOT be tendered from which of the following accounts?

8. Which of the following items are required on an order ticket?

I. The time of the order

II. A description of the security (stocks, bonds, symbol, and so on)

III. Whether the registered rep has discretionary authority over the account

IV. The registered rep's identification number

9. Which of the following are important factors when determining the markup or commission on a municipal bond trade?

I. The fact that you're entitled to make a profit

II. The difficulty of the trade

III. The market value of the securities at the time of the trade

10. When compared to statutory voting, cumulative voting provides an advantage to

I. larger shareholders

II. mortgage bondholders

III. smaller shareholders

IV. convertible bondholders

11. Which of the following is NOT a benefit of investing in ADRs?

12. CMOs are typically rated

13. All of the following are types of state securities registration EXCEPT

14. Declan has written a letter of complaint regarding his recent purchase of municipal bonds to his broker-dealer. Upon receipt of the complaint, the broker-dealer must first

15. An online site that provides detailed information to nonprofessional investors relating to municipal securities, including up-to-the-minute prices, is called