Series 7 Exam Practice Test 30

1. Sam Smith sends an email to his registered rep, John Johnson, complaining about the amount of commission he was charged on his last trade. According to FINRA rules, what should John Johnson do with the complaint?

2. Which of the following best describes the tax status of a limited partnership?

3. Which of the following sequences reflects the priority of payments made when a limited partnership is liquidated?

I. Secured creditors

II. General creditors

III. Limited partners

IV. General partners

4. All of the following are types of blue-sky registration EXCEPT

5. A TUV Oct 60 call is trading for 9 when TUV is at $65. What is the time value of this option?

6. Which of the following need approval from a brokerage firm's principal?

I. New accounts

II. Recommendations

III. Handling of complaints

IV. Trades in all accounts

7. A quote of 1.20 bid 1.18 offered is most likely a quote on which of the following:

8. Which of the following municipal bonds is backed by lease payments made by an underlying facility?

9. If a corporation pays a cash dividend, how does it affect its balance sheet?

I. Assets decrease

II. Liabilities decrease

III. Net worth decreases

IV. Net worth remains the same

10. All of the following are included on a confirmation for non-callable municipal bonds that were purchased on a yield basis EXCEPT

11. Which of the following option positions provides an investor with potential premium income while limiting the maximum loss potential?

12. A customer wants their registered representative to purchase a security that is incompatible with their investment objectives. What action should the registered representative take under FINRA rules?

13. All the following calculations can be determined by finding the information on a corporation's balance sheet EXCEPT

14. Which of the following are money market securities?

15. Income derived from an investment in a real-estate limited partnership is termed