Series 7 Exam Practice Test 28

1. All of the following impact the marketing of a municipal bond issue EXCEPT

2. IRAs may be set up in all the following ways EXCEPT

3. An investor who purchases a variable life insurance policy faces which of the following risks?

4. All of the following are nonfinancial influences that may help determine an investor's investment profile EXCEPT

5. Which of the following is TRUE of a durable power of attorney?

6. One of your clients purchased a 4 percent ABC convertible bond yielding 5 percent and convertible at $50. If your client holds the bond until maturity, how much will they receive?

7. Barbara Billington has a margin account with a market value of $30,000 and a debit balance of $12,000. If Barbara wants to purchase an additional $10,000 of stock in this account, what amount must she deposit?

8. 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?

9. An investor purchased 200 shares of AYLA Corp. common stock for a price of $5,000 on October 1st. The following October 1st, the investor sold the 200 shares of AYLA Corp. common stock for $6,000. The $1,000 capital gain will be

I. considered short-term

II. considered long-term

III. taxed at a maximum rate of 20 percent

IV. taxed at the investor's tax bracket

10. The largest source of backing for a local GO bond is

11. Brett Overtrade is a registered representative who works for Missed Again Securities. Brett has just learned of the death of one of his customers. Which of the following actions should Brett take regarding his deceased customer's account?

I. Mark his customer's account as deceased.

II. Cancel all open orders.

III. Wait for the proper legal papers.

12. The trading volume for some large institutional orders is concealed from the public. What is this called?

13. A Designated Market Maker is responsible for doing all of the following EXCEPT

14. Which of the following bonds most likely has the highest coupon rate?

15. 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?

I. AA rated IDB

II. U.S. Treasury note

III. AA rated debenture

IV. Income bonds

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