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FINRA Series7 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Job Functions Overview | - Function 3: Provides Customers with Information About Investments and Makes Suitable Recommendations
|
FINRA General Securities Representative Examination (GS) Sample Questions:
What rate of return takes into consideration appreciation or depreciation in market value relating to the par
value of a debt security?
- A. basis yield
- B. nominal yield
- C. yield to maturity
- D. current yield
Correct Answer: C 🗳️
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Bubba's order to purchase investment company shares must be executed at a price based upon the net
asset value of the shares:
- A. computed the previous day at the close of the NYSE
- B. last computed before receipt of the order by the dealer
- C. computed the same day the order is received by the dealer
- D. next computed after receipt of the order by the dealer
Correct Answer: D 🗳️
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In terms of depletion, percentage depletion is better than cost depletion because it:
- A. is limited to production
- B. is more widely available
- C. permits recovery of more than the original cost
- D. is not subject to recapture
Correct Answer: C 🗳️
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An ERISA benefits plan qualified under Section 401(a) of the Internal Revenue Code may:
- A. apply for an exemption
- B. purchase only securities issued by the state or federal government
- C. only purchase securities rated "A" or better
- D. purchase any IPO security provided the plan is not sponsored solely by a broker/dealer
Correct Answer: D 🗳️
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Bubba buys a 5% municipal bond maturing in 15 years that is trading at a market price of 85. What is the
nominal yield?
- A. 5.00%
- B. 5.88%
- C. cannot be determined
- D. 5.1%
Correct Answer: A 🗳️
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