FINRA Series 7 Certification Exam Sample Questions

Series 7 Dumps PDF, General Securities Representative Exam Dumps, download GS free Dumps, FINRA General Securities Representative Exam questions, free online GS exam questionsYou have to pass the Series 7 exam to receive the certification from FINRA. To increase the effectiveness of your study and make you familiar with the actual exam pattern, we have prepared this FINRA General Securities Representative Exam sample questions. Our Sample FINRA General Securities Representative Exam Practice Exam will give you more insight about both the type and the difficulty level of the questions on the FINRA GS exam.

However, we are strongly recommending practice with our Premium FINRA Series 7 - General Securities Representative Exam Practice Exam to achieve the best score in your actual FINRA Series 7 Exam. The premium practice exam questions are more comprehensive, exam oriented, scenario-based and exact match of FINRA General Securities Representative Exam questions.

FINRA General Securities Representative Exam Sample Questions:

01. A 40-year-old client intends to invest $250,000 as a lump sum in a single mutual-fund family and hold it for retirement roughly 25 years away. She is cost-sensitive and expects no need to access the money in the interim.
Which share class is generally MOST cost-effective for this profile?
a) An equal split across A, B, and C to diversify the fee structure
b) Class A shares, using breakpoints to reduce the front-end load
c) Class C shares, for their level load
d) Class B shares, to avoid any sales charge entirely
 
02. A representative reviews a client's account and recommends spreading holdings across several unrelated industries rather than concentrating in one sector.
Diversifying across many issuers and industries is primarily intended to reduce which type of risk?
a) Interest-rate (money-rate) risk
b) Systematic (broad market) risk
c) Purchasing-power (inflation) risk
d) Nonsystematic (unsystematic) risk
 
03. A municipal securities dealer prepares an advertisement promoting a new revenue-bond issue it is helping to bring to market.
Under MSRB advertising rules, what approval is required before the ad is published?
a) The MSRB must pre-clear the advertisement content before the dealer may distribute it.
b) A municipal securities principal must approve the ad in writing before its first use.
c) The issuer's bond counsel must review and clear the advertisement before publication.
d) No principal approval is needed because a municipal ad is exempt from supervisory review.
 
04. A customer buys a dividend-paying stock in a regular-way trade executed on the ex-dividend date for the upcoming distribution.
Is the customer entitled to that dividend?
a) Yes, because the purchase is expected to settle on or before the dividend record date.
b) Yes, because ownership exists before the dividend payment date arrives.
c) No; a purchase on or after the ex-date is not entitled, so the seller keeps it.
d) Yes, because the trade automatically carries a due bill for the dividend.
 
05. A customer establishes a bull call spread: buys one XYZ 50 call at $5 and sells one XYZ 55 call at $2.
What is the maximum gain on this debit spread?
a) $500
b) $200
c) $300
d) $700
 
06. A customer who expects a large price move but is unsure of direction buys one XYZ 50 call at $3 and one XYZ 50 put at $2, establishing a long straddle.
What are the two breakeven points at expiration?
a) $45 and $55
b) $48 and $52
c) $47 and $53
d) $50 and $55
 
07. A market maker responds to a broker's inquiry with a two-sided quote and states that it is a firm quote for 500 shares.
What obligation does a firm quote create?
a) The market maker may execute only if the security first trades at the quoted price on an exchange.
b) The quote binds the market maker for the rest of the trading session regardless of size.
c) The market maker must trade at the quoted price for at least the quoted size.
d) The quote is only an indication and is subject to reconfirmation before any trade.
 
08. XYZ common stock is trading at $52 per share. A customer holds one XYZ October 45 call, which is quoted at a premium of $9.
What is the intrinsic value of this call?
a) $0
b) $9
c) $2
d) $7
 
09. A city expects to receive property-tax collections in six months but needs cash now to fund current operations. It issues short-term notes that will be repaid from those upcoming tax receipts.
Which instrument has the city issued?
a) A bond anticipation note (BAN).
b) A grant anticipation note (GAN).
c) A tax anticipation note (TAN).
d) A revenue anticipation note (RAN).
 
10. A corporation reports operating income (EBIT) of $12,000,000 after deducting depreciation of $3,000,000 among its operating expenses.
What is the company's EBITDA?
a) $3,000,000
b) $9,000,000
c) $12,000,000
d) $15,000,000

Answers:

Question: 01
Answer: b		 Question: 02
Answer: d		 Question: 03
Answer: b		 Question: 04
Answer: c		 Question: 05
Answer: b
Question: 06
Answer: a		 Question: 07
Answer: c		 Question: 08
Answer: d		 Question: 09
Answer: c		 Question: 10
Answer: d

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