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Series 7 Exam Review Questions
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Series 7 exam review questions are 125 multiple-choice, application-based questions designed by FINRA to test your knowledge of securities products, client suitability, and regulatory rules. They cover topics like options, bonds, mutual funds, account management, and trading, with a heavy emphasis on client scenarios and suitability.  Key Topics and Question Areas Suitability and Recommendations (91 Questions): This is the largest section, focusing on recommending appropriate investments (stocks, bonds, options, muni bonds) based on a client's risk profile, financial objectives, and tax... Show more
Series 7 Exam Review Questions
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25 Questions

1. The largest source of backing for a local GO bond is
2. Which of the following are true about closed-end funds?
They may only issue common stock.
They are generally listed on an exchange.
They have a fixed number of shares outstanding.
They are redeemable.
3. Freddy Smith sends an email to his registered rep, Jake Penetta, complaining about the amount of commission he was charged on his last trade. According to FINRA rules, what should Jake Penetta do with the complaint?
4. Records of written customer complaints must be kept on file for at least
5. The trading volume for some large institutional orders is concealed from the public. What is this called?
6. Charges for services performed by a broker-dealer (such as collection of money due for principal, interest, or dividends; transfer or exchange of securities; safekeeping of securities; and so on) should be
7. Which of the following items can be found in the certificate of limited partnership?
The goals of the partnership and how long it’s expected to last
The authority of the general partner to charge a fee for making management decisions for the partnership
How the profits are to be distributed
The amount contributed by each partner, plus future expected investments
8. One of your customers is interested in investing in an oil and gas limited partnership. As their registered rep, which of the following steps are you required to take?
Prescreen the customer.
Determine the economic soundness of the program.
Explain the risks of investing in limited partnerships.
Have your customer fill out a partnership agreement.
9. Broker-dealers may charge a
commission
markup
markdown
10. John Crane is a resident of Michigan. Mr. Crane purchased a Michigan municipal bond. What is the tax treatment of the interest that John earns on his Michigan bond?
It is exempt from local taxes.
It is exempt from state taxes.
It is exempt from federal taxes.
11. Ginny Goldtrain is a wealthy investor who is in the highest income bracket. Ginny is looking for an investment that would limit her tax liability and put her on equal footing with investors in lower income-tax brackets. Which of the following securities would you MOST likely recommend?
12. A Regulation D private placement is
13. When a corporation declares a cash dividend, which of the following is true in relation to the corporation’s balance sheet?
14. The Trade Reporting and Compliance Engine (TRACE) promotes better market transparency by allowing trade details to be released to the investing public that purchases
15. All of the following are nonfinancial influences that may help determine an investor’s investment profile EXCEPT
16. Common stockholders in a corporation can do which of the following?
17. If a customer, Jenny, gives limited power of attorney to her registered representative, which of the following is TRUE?
18. Which of the following need approval from a brokerage firm’s principal?
New accounts
Recommendations
Handling of complaints
Trades in all accounts
19. Your client, Dana Griffin, is about to retire and she wants predictable income. Which of the following would NOT be a good investment for Dana?
AA rated IDB
U.S. Treasury note
AA rated debenture
Income bonds
20. An investor who purchases a variable life insurance policy faces which of the following risks?
21. Which of the following is TRUE regarding standard equity options?
Each standard contract represents 1,000 shares of the underlying security
Each standard contract represents 100 shares of the underlying security
They are exercisable European style
They are exercisable American style
22. Prior to opening a day trading account for a customer, a member shall make a reasonable effort to determine certain information about the customer, including
23. One of your clients wants to start adding some diversity to their portfolio by investing in mutual funds. Which of the following is the most important consideration when choosing a mutual fund?
24. The indenture of a corporate bond includes all of the following EXCEPT
25. To protect investors of variable life insurance policies who become disabled, there is a rider called a(n)

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Series 7 Exam: Options Series 7 Exam: Underwriting Securities Series 7 Exam Practice Questions Series 7 Exam: Rules and Regulations Series 7 Exam: Municipal Bonds
 
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