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  1. Home
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  3. SERIES 7

FINRA SERIES 7 Exam (page: 12)
FINRA General Securities Representative ination (GS)
Updated on: 25-Dec-2025

Viewing Page 12 of 81
SERIES 7 PDF 400 Questions

What rate of return takes into consideration appreciation or depreciation in market value relating to the par value of a debt security?

  1. current yield
  2. yield to maturity
  3. nominal yield
  4. basis yield

Answer(s): B

Explanation:

yield to maturity. The premium or discount in the security price relative to par value is considered when computing the yield to maturity.



Which of the following is not an attribute of US treasury bills?

  1. an unusually high degree of liquidity
  2. always sells at a discount to face value
  3. is most often issued with three-month, six-month, and one-year maturities
  4. interest is exempt from federal income taxes

Answer(s): D

Explanation:

interest is exempt from federal income taxes. This is the choice that is “not” an attribute of treasuries. All of the other choices are attributes of US treasury bills, which are subject to federal income taxes.



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

  1. when interest rates rise
  2. when interest rates fall
  3. when interest rates are stable
  4. when the yield curve is inverted

Answer(s): B

Explanation:

when interest rates fall. Homeowners are most likely to refinance when rates are lower than the past.



Which of the following is not true about US treasury bills?

  1. they are issued at a discount
  2. they are money market instruments
  3. they are issued in denominations of $1,000 to $1,000,000
  4. they are general obligations of the US government

Answer(s): C

Explanation:

they are issued in denominations of $1,000 to $1,000,000. Remember, the question asks what is “not” true. The smallest denomination for a US treasury bill is $10,000.



CMOs are sold and priced based upon which of the following:

  1. expected average life
  2. stated maturity
  3. current yield
  4. par value

Answer(s): A

Explanation:

expected average life. The average life of a CMO is the length of time that each dollar of invested principal is expected to remain outstanding. Pricing of CMOs is based upon this factor.



Viewing Page 12 of 81



Share your comments for FINRA SERIES 7 exam with other users:

Karan Patel 8/15/2023 12:51:00 AM

yes, can you please upload the exam?
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