Series 7 Exam Practice Questions

1.

Name the third stage of the Business Cycle.

  • A. Peak
  • B. Contraction
  • C. Trough
  • D. Expansion

2.

CUSIP stands for _________________.

  • A. Commission on Uniform Securities Identification Procedure
  • B. Committee on Uniform Securities Ideal Procedure
  • C. Committee on Uniform Securities Identification Procedure
  • D. Commission on Uniform Securities Ideal Procedure

3.

ADR stands for ____________.

  • A. American Depositary Receipt
  • B. American Deposit Related
  • C. American Depositary Rating
  • D. American Deposit Rating

4.

_______ were created to attract investors by offering protection against

  • A. STRIPS
  • B. Treasury Notes
  • C. TIPS
  • D. Treasury Bills

5.

Which of the following is not a characteristics of Collateralized mortgage obligations (CMOs)?

  • A. They are considered very safe because they're tied to mortgages guaranteed
  • B. Their yield is higher than that of government securities.
  • C. Payments are received quarterly, instead of every six months.
  • D. All investors must sign suitability statement saying that they under the

6.

The _____ comes out every day, and is the bible of municipal bond

  • A. Bond Buyer
  • B. Munifacts
  • C. Official Statement
  • D. Underwriting Syndication

7.

The ________ requires that any recommendations made to a customer by a municipal bond broker or dealer be appropriate for that customer.

  • A. Municipal Securities Ruling Bond
  • B. Options Trading Board
  • C. Options and Securities Rulemaking Board
  • D. Municipal Securities Rulemaking Board

8.

UGMA stands for _______.

  • A. Uniform Grant to Minors Act
  • B. Uniform Grant to Minorities Act
  • C. Uniform Gift to Minors Act
  • D. Uniform Gift to Minorities Act

9.

For the New York Stock Exchange, a company must have at least ___ million

  • A. 1.0, 2000, 150
  • B. 1.0, 3000, 100
  • C. 1.1, 2000, 100
  • D. 1.1, 3000, 150

10.

______ is shorthand for regular way settlement.

  • A. T + 3
  • B. S + 2
  • C. Z + 1.5
  • D. N + 3.5