Series 7 "practice Questions"

Front 1

A registered principal or registered representative must retake the qualifying exam if his or her registration has been revoked or terminated for a period of ____________ or more.

Back 1

5 years

2 years

1 year

3 years

Front 2

A member may maintain a representative registration for which of the following persons?

Back 2

I. A person who performs legal, compliance, or internal audit functions for the member

II. A person who performs back-office functions for the member

III. A person who is no longer functioning as a representative

IV. A person who performs administrative functions for registered personnel

I, II, IV

Front 3

Which of the following is true regarding persons who are to function as research analysts?

Back 3

I They must be registered as a general securities representative and pass a qualifying examination for research analysts.

II They must pass a qualifying examination for research analysts only.

III None of these answer choices.

IV They must be registered as a general securities representative only.

I

Front 4

Within how many days must a member report to FINRA if the member or an associated person of the member is the subject of a written customer complaint involving allegations of theft or misappropriation of funds?

Back 4

10 business days

15 calendar days

20 business days

30 calendar days

Front 5

Which of the following are considered institutional investors?

Back 5

I A qualified plan as defined in Section 3(a)(12)(C) of the Exchange Act and that has at least 100 participants

II An employee benefit plan that meets the requirement of Section 403(b) or Section 457 of the Internal Revenue Code and has at least 100 participants

III All of these answer choices

IV A governmental entity

Front 6

An options contract that gives the holder the right to purchase the number of shares of the underlying security is a _________________.

Back 6

Covered

Uncovered

Put

Call

Front 7

Which of the following registered principals may approve the purchase of a variable annuity?

Back 7

I. General Securities Sales Supervisor (Series 9/10)

II. General Securities Principal (Series 24)

III. Investment Company Products/Variable Contracts Principal (Series 26)

I, II, III

Front 8

Correspondence means any written communication that is distributed to _____ or fewer retail investors within any ______-day period.

Back 8

I 10 or fewer investors within any 10-day period

II 15 or fewer investors within any 20-day period

III 25 or fewer investors within any 30-day period

IV 30 or fewer investors within any 25-day period

III

Front 9

Which of the following persons would not be included in a research analyst’s household?

Back 9

I A mother, financially dependent on the research analyst, living at the same address.

II Parents who have a different principal residence than the research analyst.

III A nonrelated, financially independent individual who resides at the same address as the research analyst.

IV A spouse and children who share the same principal residence as the research analyst.

III

Front 10

What is the Time of Day Restriction when placing cold calls (telemarketing)?

Back 10

I Before 8:00 a.m. and after 8:00 p.m. (local time of the called party’s location)

II Before 8:00 a.m. and after 8:00 p.m. (local time of the caller’s location)

III Before 8:00 a.m. and after 9:00 p.m. (local time of the called party’s location)

IV Before 8:00 a.m. and after 9:00 p.m. (local time of the caller’s location)

III

Front 11

What are the three General Telemarketing Requirements?

Back 11

I Time of Day Restriction, State Do-Not-Call List, and National Do-Not-Call List

II State Do-Not-Call List, National Do-Not-Call List, and Firm-Specific Do-Not-Call List

III Time of Day Restriction, Firm-Specific Do-Not-Call List, and State Do-Not Call List

IV Time of Day Restriction, National Do-Not-Call List, and Firm-Specific Do Not Call List

IV

Front 12

What is the dollar value that any gift from or to a member or person associated with a member may not exceed in one year?

Back 12

$0.00 (gifts are not allowed)

$50.00

$150.00

$100.00

Front 13

When must a customer opening a margin account receive the Margin Disclosure Statement?

Back 13

I When the first deposit into the account is made

II At or prior to account opening

III With the first account statement

IV After the account is opened

Front 14

Which of the following is not a disclosure in the Margin Disclosure Statement?

Back 14

I You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.

II You can make bigger profits by utilizing margin in your account.

III The firm can sell your securities or other assets without contacting you.

IV You can lose more funds than you deposit in the margin account.

II

Front 15

How often must the Margin Disclosure Statement be sent to existing margin account holders?

Back 15

Monthly

Quarterly

Annually

Semiannually