FINRA-General Securities Representative Qualification Examination Set 2

1.

An offering price of 102 plus accrued interest applies to which of the following securities?

treasury bills certificates of deposit commercial paper banker's acceptances

2.

Bubba Corporation owes income tax. Which of the following may be tendered at par value for payment of the tax?

term bond tax anticipation bill special tax bond pre-issue bond

3.

An advertisement for a CMO security by a member of FINRA should disclose which of the following?

the exact yield investor will earn the yield based upon the prevailing discount rate that the stated yield is an estimate that may vary passed upon prepayments and market factors that the yield may be greater than the stated percentage but never less

4.

Which of the following statements incorrectly describes US securities markets?

a capital market comprised of long-term debt and equity issues a money market comprised of short-term debt and equity issues a municipal market comprised of tax-exempt issues of state and local governments a government and agency market comprised of both short-term and long-term debt issues

5.

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

current yield yield to maturity nominal yield basis yield

6.

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

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

7.

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

when interest rates rise when interest rates fall when interest rates are stable when the yield curve is inverted

8.

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

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

9.

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

expected average life stated maturity current yield par value

10.

FINRA advertising standards permit a dealer to state that a CMO has an implied AAA rating if the securities are issued:

with an average life no longer than ten years by a US government agency by a private issuer who has not yet received an expected AAA rating in amounts less than $1,000,000

FINRA-General Securities Representative Qualification Examination Set 2

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FINRA-General Securities Representative Qualification Examination Set 2

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