Free FINRA Series-7 Exam Questions

Become FINRA Certified with updated Series-7 exam questions and correct answers

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Total 405 Questions | Updated On: Feb 20, 2025

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Question 1

Bubba is age 54 and has investments in a retirement plan with his former employer valued

at $104,500. Bubba withdraws $25,000 to open a retail clothing store.

Which of the following statements is true regarding Bubba’s tax consequences?

A : entire account is terminated and $104,500 is immediately taxable

B : a penalty of 10% of the withdrawn amount is assessed

C : penalty of 10% on all assets in Bubba’s account is assessed

Answer: B

Question 2

Which of the following is not usually an additional function of a mutual fund’s custodial bank?

A : ansfer agent

B : vestment advisor

C : gistrar

D : vidend disbursing agent

Answer: B

Question 3

Which of the following activities by a limited partner may subject the partner to unlimited liability?

A : rticipating in management of the partnership

B : mmitting the partnership in any manner

C : king loans beyond those specified in the partnership agreement

D : l of the above

Answer: D

Question 4

Level III of NASDAQ provides which of the following?

A : representative quotations

B : rm quotation

C : bject markets

D : rkout markets

Answer: B

Question 5

Hypothecation usually refers to which of the following?

A : recasting the market based upon past performance

B : edging securities as collateral

C : termining a reasonable offering price for a new issue

D : ne of the above

Answer: B

Page: 1 / 81

Total 405 Questions | Updated On: Feb 20, 2025

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