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Free FINRA Series-7 Practice Exam with Questions & Answers | Set: 5

Questions 41

Under which of the following conditions are homeowners most likely to refinance existing mortgages?

Options:
A.

when interest rates rise

B.

when interest rates fall

C.

when interest rates are stable

D.

when the yield curve is inverted

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Questions 42

Who obtains and pays the municipal bond attorney rendering a legal opinion about the validity of the bond issue?

Options:
A.

the purchaser of the bonds

B.

the underwriter

C.

the issuing municipality

D.

the municipality’s financial adviser

Questions 43

In a best efforts distribution of a new non-exempt issue, a broker/dealer:

Options:
A.

may allow a selling concession to a bank or trust company

B.

agrees to buy the issue at a specified price

C.

is not required to use an offering circular or prospectus

D.

acts as an agent for the issuer

Questions 44

Which of the following are direct obligations of the US government?

Options:
A.

Import-Export bank bonds

B.

Series EE bonds

C.

Farm Credit System bonds

D.

both B and C

Questions 45

In a securities underwriting a participating firm is said to be liable severally but not jointly.

What is this type of underwriting is called?

Options:
A.

a Western account

B.

an Eastern account

C.

a best efforts offering

D.

an all or none offering

Questions 46

Which of the following is true of treasury stock?

Options:
A.

it has voting rights

B.

it is entitled to receive dividends

C.

it is stock that has not been issued

D.

it is stock that has been reacquired by the issuer

Questions 47

What Federal Reserve Board regulation governs the extension of securities-related credit by banks?

Options:
A.

Regulation G

B.

Regulation T

C.

Regulation U

D.

Regulation X

Questions 48

The agreement between the members of a syndicate and the manager is known as the:

Options:
A.

agreement among underwriters

B.

underwriting agreement

C.

standby agreement

D.

selling agreement

Questions 49

The return by the receiving party of securities previously accepted for delivery or a demand by the delivering party for return of securities that have been delivered is called:

Options:
A.

rejection

B.

close-out

C.

reclamation

D.

re-delivery

Questions 50

Which of the following are considered to be discretionary orders under the FINRA Rules of Fair Practice?

Options:
A.

a customer instructs her registered representative to purchase stock in XYZ whenever the representative deems the price to be right

B.

a customer instructs her registered representative to sell 300 shares of ABC that is long in her account whenever the representative thinks the time and price are appropriate

C.

a customer gives a member firm a check for $25,000 and instructs the firm to purchase bank stocks and insurance company stocks when the prices appear to be favorable

D.

both A and C

Exam Code: Series-7
Certification Provider: FINRA
Exam Name: Series 7 General Securities Representative Qualification Examination (GS)
Last Update: Jul 9, 2025
Questions: 400

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