Quiz-summary
0 of 30 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
Information
FINRA Series 7
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 30 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- Answered
- Review
-
Question 1 of 30
1. Question
Which service(s) is (are) used to facilitate automated trade reporting and reconciliation, specifically for trades which are not made on an exchange?
I. Electronic Municipal Market Access
II. Trade Reporting Facility
III. MIG-1 ratings
IV. Corporate profitsCorrect
A Trade Reporting Facility (TRF) is a service used to facilitate automated trade reporting and reconciliation, specifically for trades which are not made on an exchange.
Incorrect
A Trade Reporting Facility (TRF) is a service used to facilitate automated trade reporting and reconciliation, specifically for trades which are not made on an exchange.
-
Question 2 of 30
2. Question
Which of the following is an online source of information for municipal bonds?
I. MIG-1 ratings
II. Corporate profits
III. Investment risk
IV. Electronic Municipal Market AccessCorrect
Electronic Municipal Market Access (EMMA) is an online source of information for municipal bonds.
Incorrect
Electronic Municipal Market Access (EMMA) is an online source of information for municipal bonds.
-
Question 3 of 30
3. Question
Which of the following statement is true for Call risk?
I. Risk of causing the bondholder to lose the stream of interest payments left until maturity
II. Risk of losing all the capital one has invested, particularly for options and warrants.
III. Risk for a creditor that principal and interest on a loan.
IV. Risk that investments will be harmed through changes in currency exchange rates.Correct
Call risk is the chance that a callable bond will be called, causing the bondholder to lose the stream of interest payments left until maturity.
Incorrect
Call risk is the chance that a callable bond will be called, causing the bondholder to lose the stream of interest payments left until maturity.
-
Question 4 of 30
4. Question
The risk of losing all the capital one has invested, particularly for options and warrants is known as:
I. Credit risk
II. Currency risk
III. Capital risk
IV. Inflationary riskCorrect
Capital risk is the risk of losing all the capital one has invested, particularly for options and warrants.
Incorrect
Capital risk is the risk of losing all the capital one has invested, particularly for options and warrants.
-
Question 5 of 30
5. Question
Which of the following statement is false for Interest rate risk?
I. Risk that investments will be harmed through fluctuations in interest rates.
II. Risk that an investor will not be able to liquidate his assets when he wishes
III. Risk particularly affects bond and mortgage holders.
IV. Risk intrinsic to the market taken as a whole or to a market segment.Correct
(i) risk that an investor will not be able to liquidate his assets when he wishes (ii) Risk intrinsic to the market taken as a whole or to a market segment.
Incorrect
(i) risk that an investor will not be able to liquidate his assets when he wishes (ii) Risk intrinsic to the market taken as a whole or to a market segment.
-
Question 6 of 30
6. Question
Which of the following risk refers to the investments that could be harmed through some political events or unrest, whether domestically or abroad:
I. Prepayment risk
II. Prepayment risk
III. Political or legislative risk
IV. Systematic market riskCorrect
Political or legislative risk is the risk that investments could be harmed through some political events or unrest, whether domestically or abroad.
Incorrect
Political or legislative risk is the risk that investments could be harmed through some political events or unrest, whether domestically or abroad.
-
Question 7 of 30
7. Question
If an investor makes some transaction at the wrong, failing to minimize his losses or maximize his gains then the risk is termed as:
I. Reinvestment risk
II. Prepayment risk
III. Inflationary risk
IV. Timing riskCorrect
Timing risk is simply the risk that an investor might make some transaction at the wrong, failing to minimize his losses or maximize his gains.
Incorrect
Timing risk is simply the risk that an investor might make some transaction at the wrong, failing to minimize his losses or maximize his gains.
-
Question 8 of 30
8. Question
The portion of the company’s profit that is returned to shareholders refers to which of the following:
I. Dividend
II. Interest
III. Capital gain
IV. Capital lossCorrect
A dividend is a portion of the company’s profit that is returned to shareholders
Incorrect
A dividend is a portion of the company’s profit that is returned to shareholders
-
Question 9 of 30
9. Question
Which type of bond(s) provide tax-exempted interest:
I. Corporate Bonds
II. Municipal bonds
III. Convertible Bonds
IV. Term BondsCorrect
Municipal bonds provide tax-exempted interest.
Incorrect
Municipal bonds provide tax-exempted interest.
-
Question 10 of 30
10. Question
These documents are disclosures provided by issuers of securities providing specific and detailed financial information concerning both the issuer and the offering itself?
I. Red herrings
II. Prospectuses
III. Material events
IV. Offering documentsCorrect
Offering documents are disclosures provided by issuers of securities providing specific and detailed financial information concerning both the issuer and the offering itself.
Incorrect
Offering documents are disclosures provided by issuers of securities providing specific and detailed financial information concerning both the issuer and the offering itself.
-
Question 11 of 30
11. Question
The Federal Deposit Insurance Corporation (FDIC) is a corporation of the U.S. federal government was established under the act of:
I. Glass-Steagall Act of 1933.
II. Glass-Steagall Act of 1934.
III. Glass-Steagall Act of 1936
IV. Glass-Steagall Act of 1940Correct
The Federal Deposit Insurance Corporation (FDIC) is a corporation of the U.S. federal government established by the Glass-Steagall Act of 1933.
Incorrect
The Federal Deposit Insurance Corporation (FDIC) is a corporation of the U.S. federal government established by the Glass-Steagall Act of 1933.
-
Question 12 of 30
12. Question
Which of the following term refers to the prices dealers (or others) are willing to pay for particular security:
I. Asks
II. Firm quotes
III. Bids
IV. Subject offersCorrect
Bids are prices which dealers (or others) are willing to pay for particular security.
Incorrect
Bids are prices which dealers (or others) are willing to pay for particular security.
-
Question 13 of 30
13. Question
Which of the following term refers to the prices dealers (or others) are willing to sell a particular security:
I. Bids
II. Asks
III. Subject offers
IV. Firm quotesCorrect
Asks are prices at which dealers (or others) are willing to sell a particular security.
Incorrect
Asks are prices at which dealers (or others) are willing to sell a particular security.
-
Question 14 of 30
14. Question
Which of the following are the types of orders?
I. Buy orders
II. Short selling orders
III. Market orders
IV. Sell ordersCorrect
(i) Buy orders (ii) Short selling orders (iii) Market orders (iv) Sell orders
Incorrect
(i) Buy orders (ii) Short selling orders (iii) Market orders (iv) Sell orders
-
Question 15 of 30
15. Question
Which of the following term refers to the order where the investor does not own a security, done with the assumption that the share can be purchased back at a lower price:
I. Stop orders
II. Market orders
III. Sell orders
IV. Limit ordersCorrect
Short selling orders are orders to sell a security which the investor does not own, done with the assumption that the share can be purchased back at a lower price.
Incorrect
Short selling orders are orders to sell a security which the investor does not own, done with the assumption that the share can be purchased back at a lower price.
-
Question 16 of 30
16. Question
Which of the following order has no restrictions on the price on buying or selling a stock:
I. Stop orders
II. Market orders
III. Sell orders
IV. Order ticketCorrect
Market orders are plain and simple orders to buy or sell a stock, with no restrictions on the price.
Incorrect
Market orders are plain and simple orders to buy or sell a stock, with no restrictions on the price.
-
Question 17 of 30
17. Question
An order ticket must include which of the following:
I. account number of the client
II. The execution price
III. The representative’s ID number
IV. Orders to purchase or sell a securityCorrect
(i) Account number of the client (ii) The execution price (iii) The representative’s ID number
Incorrect
(i) Account number of the client (ii) The execution price (iii) The representative’s ID number
-
Question 18 of 30
18. Question
Which of the following thing(s) is(are) included in Customer confirmations?
I. The account number of the customer
II. The trade date
III. The CUSIP ID number
IV. The commission totalCorrect
(i) The account number of the customer (ii) The trade date (iii) The CUSIP ID number (iv) The commission total
Incorrect
(i) The account number of the customer (ii) The trade date (iii) The CUSIP ID number (iv) The commission total
-
Question 19 of 30
19. Question
Which of the following bonds are not registered to particular individuals, but are as tradable and liquid as dollar bills, must be delivered with all the related unpaid coupons?
I. Bearer bonds
II. Registered bonds
III. Due bills
IV. Security certificateCorrect
Bearer bonds, which are not registered to particular individuals, but are as tradable and liquid as dollar bills, must be delivered with all the related unpaid coupons.
Incorrect
Bearer bonds, which are not registered to particular individuals, but are as tradable and liquid as dollar bills, must be delivered with all the related unpaid coupons.
-
Question 20 of 30
20. Question
Which of the following term refers to the orders to buy or sell a security which will lose validity (expire) if the transaction is not made within the same day?
I. At-the-open orders
II. Fill or kill orders
III. Day orders
IV. GTC ordersCorrect
Day orders are orders to buy or sell a security which will lose validity (expire) if the transaction is not made within the same day.
Incorrect
Day orders are orders to buy or sell a security which will lose validity (expire) if the transaction is not made within the same day.
-
Question 21 of 30
21. Question
When the client tells the broker that the broker must immediately fill the entire order at the price the client is looking for is known as:
I. GTC orders
II. Market-on-close orders
III. Fill or kill orders
IV. At-the-open ordersCorrect
Fill or kill orders occur when the client tells the broker that the broker must immediately fill the entire order at the price the client is looking for (or a better one).
Incorrect
Fill or kill orders occur when the client tells the broker that the broker must immediately fill the entire order at the price the client is looking for (or a better one).
-
Question 22 of 30
22. Question
Which of the following statement(s) refer to the primary responsibility of Securities and Exchange Commission (SEC):
I. The regulation of the securities industry
II. Stock and Options exchanges
III. Governs securities trading
IV. Investment banking firmsCorrect
The Securities and Exchange Commission (SEC) is an agency of the U.S. federal government which is primarily responsible for the regulation of the securities industry and stock and options exchanges.
Incorrect
The Securities and Exchange Commission (SEC) is an agency of the U.S. federal government which is primarily responsible for the regulation of the securities industry and stock and options exchanges.
-
Question 23 of 30
23. Question
A self-regulatory organization (SRO) tasked with developing rules for banks and securities firms to follow whenever they underwrite, sell, purchase, or recommend municipal securities is known as:
I. Chicago Board Options Exchange (CBOE)
II. Securities and Exchange Commission (SEC)
III. Financial Industry Regulatory Authority (FINRA)
IV. Municipal Securities Rulemaking Board (MSRB)Correct
The Municipal Securities Rulemaking Board (MSRB) is a self-regulatory organization (SRO) tasked with developing rules for banks and securities firms to follow whenever they underwrite, sell, purchase, or recommend municipal securities.
Incorrect
The Municipal Securities Rulemaking Board (MSRB) is a self-regulatory organization (SRO) tasked with developing rules for banks and securities firms to follow whenever they underwrite, sell, purchase, or recommend municipal securities.
-
Question 24 of 30
24. Question
Which of the following is the largest options exchange in the United States—but also a self-regulatory organization (SRO)?
I. Securities and Exchange Commission (SEC)
II. Municipal Securities Rulemaking Board (MSRB)
III. Chicago Board Options Exchange (CBOE)
IV. District Business Conduct Committee (DBCC)Correct
The Chicago Board Options Exchange (CBOE) is not only an options exchange—the largest options exchange in the United States—but also a self-regulatory organization (SRO).
Incorrect
The Chicago Board Options Exchange (CBOE) is not only an options exchange—the largest options exchange in the United States—but also a self-regulatory organization (SRO).
-
Question 25 of 30
25. Question
Which of the following statements refer to the functions of capital markets?
I. They mobilize savings into profitable investments.
II. They encourage savings in the first place
III. They increase economic growth
IV. They Underwrite the issue of the securities.Correct
(i) They mobilize savings into profitable investments.
(ii) They encourage savings in the first place
(iii) They increase economic growthIncorrect
(i) They mobilize savings into profitable investments.
(ii) They encourage savings in the first place
(iii) They increase economic growth -
Question 26 of 30
26. Question
The institutions (broker-dealers, particularly) which help issuers of securities to raise money for themselves is also known as:
I. capital markets
II. Money market
III. Selling groups
IV. Business continuityCorrect
Investment banking firms are any institutions (broker-dealers, particularly) which help issuers of securities to raise money for themselves.
Incorrect
Investment banking firms are any institutions (broker-dealers, particularly) which help issuers of securities to raise money for themselves.
-
Question 27 of 30
27. Question
The Securities Act of 1933 can also be called as:
I. Truth in Securities Act
II. The Paper Act
III. The Prospectus Act
IV. The New Issues ActCorrect
The Securities Act of 1933 can also be called the Truth in Securities Act, the Paper Act, the Full Disclosure Act, the Prospectus Act, or the New Issues Act.
Incorrect
The Securities Act of 1933 can also be called the Truth in Securities Act, the Paper Act, the Full Disclosure Act, the Prospectus Act, or the New Issues Act.
-
Question 28 of 30
28. Question
Which of the following information is required in registration statement?
I. issuer’s name
II. Description of issuer’s business
III. The company’s capitalization
IV. Truthfully disclose information for the new issue of securitiesCorrect
(i) Issuer’s name (ii) Description of issuer’s business (iii) The company’s capitalization
Incorrect
(i) Issuer’s name (ii) Description of issuer’s business (iii) The company’s capitalization
-
Question 29 of 30
29. Question
Which of the following is not included in the exempt securities?
I. Municipal (local government) bonds
II. Fixed annuities and insurance policies
III. Public utility securities
IV. The company’s complete financial statementsCorrect
(i) fixed annuities and insurance policies (ii) municipal (local government) bonds (iii) Public utility securities
Incorrect
(i) fixed annuities and insurance policies (ii) municipal (local government) bonds (iii) Public utility securities
-
Question 30 of 30
30. Question
Which of the following rule refers to the SEC rule governing the sale of restricted, unregistered, and control securities:
I. Rule 144
II. Rule 145
III. Rule 146
IV. Rule 147Correct
Rule 144 is an SEC rule governing the sale of restricted, unregistered, and control securities.
Incorrect
Rule 144 is an SEC rule governing the sale of restricted, unregistered, and control securities.