FINRA General Securities Representative Examination (GS) : Series7

  • Exam Code: Series7
  • Exam Name: General Securities Representative Examination (GS)
  • Q & A: 400 Questions and Answers

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FINRA Series7 Exam Syllabus Topics:

SectionObjectives
Job Functions Overview- Function 4: Processes Orders and Maintains Appropriate Records
  • 1. Weight: ~11% of exam content
    • 2. Maintains required documentation and recordkeeping standards
      • 3. Executes trades in accordance with customer instructions and regulations
        - Function 1: Seeks Business for the Broker-Dealer
        • 1. Identifies investment opportunities and solicits new clients
          • 2. Opens accounts after obtaining and evaluating customer financial information
            - Function 3: Provides Customers with Information About Investments and Makes Suitable Recommendations
            • 1. Weight: ~73% of exam content
              • 2. Recommends equities, debt instruments, mutual funds, ETFs, options, and variable products
                • 3. Explains characteristics, risks, and features of investment products
                  - Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile
                  • 1. Ensures compliance with suitability and regulatory requirements
                    • 2. Determines investment objectives, risk tolerance, and financial situation

                      FINRA General Securities Representative Examination (GS) Sample Questions:

                      1. A typical money market instrument carries which of the following?

                      A) short-term maturity date
                      B) serial bond maturity date
                      C) medium-term maturity date
                      D) long-term maturity date


                      2. Which of the following is not good delivery on a sale of 470 shares?

                      A) 2 100-share certificates and 3 90-share certificates
                      B) 4 100-share certificates and one 70-share certificate
                      C) 47 10-share certificates
                      D) 8 50-share certificates, one 40-share certificate, and one 30-share certificate


                      3. In a competitive bidding for mortgage bonds of a large public utility the winning underwriter is determined
                      by:

                      A) the lowest net interest cost to the issuer
                      B) the refunding and sinking fund terms in the indenture
                      C) the shortest maturity date for the bonds
                      D) the highest dollar amount paid to the issuer


                      4. Commercial paper is typically issued with a maturity date not exceeding:

                      A) 6 months
                      B) 270 days
                      C) 90 days
                      D) 1 year


                      5. Which of the following securities is traded only in the over-the-counter market?

                      A) open-end investment companies
                      B) corporate bonds
                      C) preferred stocks
                      D) closed-end investment companies


                      Solutions:

                      Question # 1
                      Answer: A
                      Question # 2
                      Answer: A
                      Question # 3
                      Answer: A
                      Question # 4
                      Answer: B
                      Question # 5
                      Answer: A

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