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FINRA Series 7 practice questions

207 free questions with answers and explanations.

Practice test
  1. 201.A client, aged 45, is in the 30% federal income tax bracket and 5% state income tax bracket. They are considering a municipal bond with a 4.0% coupon rate and a corporate bond with a 5.5% coupon rate. Which bond offers a better after-tax yield for this client?Investment Information and Suitable Recommendations
  2. 202.A client sells short 100 shares of XYZ stock at $50 per share in a margin account. Under Regulation T, what is the minimum initial margin deposit required?Investment Information and Suitable Recommendations
  3. 203.A client owns a XYZ 6% corporate bond with a par value of $1,000, currently trading at $950. What is the current yield of this bond?Investment Information and Suitable Recommendations
  4. 204.An investor wants to purchase 200 shares of XYZ stock at $75 per share in a margin account. Under Regulation T, what is the minimum initial margin deposit required?Investment Information and Suitable Recommendations
  5. 205.A client is looking for an investment that provides income, potential for capital appreciation, and protection against inflation. Which of the following securities would be most suitable?Investment Information and Suitable Recommendations
  6. 206.A client invests $150,000 in a variable annuity. Five years later, the account value has grown to $200,000. If the client decides to surrender the annuity, and the contract has a 7-year surrender charge schedule with a 6% charge in year 5, how much will the client receive?Investment Information and Suitable Recommendations
  7. 207.A client, aged 60, has a substantial portfolio of highly appreciated growth stocks and is concerned about protecting their gains while still participating in some upside potential. They also wish to generate some income. Which options strategy would be most appropriate?Investment Information and Suitable Recommendations