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Additional Sample Series 7 Questions



  1. Which of the following is(are) self-regulatory organizations (SROs)?

    I. National Association of Securities Dealers (NASD)
    II. New York Stock Exchange (NYSE)
    III. Chicago Stock Exchange
    IV. Chicago Board Options Exchange

    a. I only
    b. I and II only
    c. I, II, and IV only
    d. I, II, III, and IV

  2. All of the following are exempt securities under the Securities Act of 1933 EXCEPT:
    a. US Treasury issue.
    b. Municipal issue.
    c. New issue of corporate stock.
    d. Building and loan association issue.

  3. A customer executes various transactions during the year and realizes a $10,000 net capital loss. What amount can be written off against ordinary income?
    a. $ -0-
    b. $1,500
    c. $3,000
    d. $10,000

  4. A customer of a brokerage firm in liquidation has an individual account with $300,000 in securities. The customer and his wife have a joint account with $500,000 in securities. The wife has an individual account with $300,000 in securities. What will the customers receive under SIPC?
    a. $300,000 for the husband's individual account and $200,000 for the joint account.
    b. $300,000 for the husband's account and $300,000 for the wife's account.
    c. All of the securities for a total of $1,100,000.
    d. The husband would receive $100,000 in securities in the individual account and $100,000 in securities from the joint account, and the wife would receive $100,000 in securities in her individual account and $100,000 in securities from the joint account.

  5. In which type of account would assets be most readily passed on to a person's estate.
    a. Joint Tenants with Rights of Survivorship (JTWROS)
    b. Tenants-in-common.
    c. Corporate.
    d. Partnership.

  6. All of the following would be considered broad based stock indexes EXCEPT:
    a. S&P 100 Index.
    b. Major Market Index.
    c. Computer Technology Index.
    d. S&P 500 Index.

  7. If the rate of inflation declines rapidly, what is the effect on the market price of a bond?
    a. It will decrease.
    b. It will increase.
    c. It will cause substantial fluctuations in the price.
    d. It will have no effect.

Answer Key to Additional Sample Questions