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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Customer recommendations and transactions
  • 1. Suitability and best interest obligations
  • 2. Portfolio and risk considerations
  • 3. Asset transfers and record maintenance
- Investment products
  • 1. Investment companies and variable products
  • 2. Options
  • 3. Direct participation programs
  • 4. Debt securities
  • 5. Equity securities
  • 6. Municipal securities
  • 7. Government securities
Topic 2: Seeks Business for the Broker-Dealer from Customers and Potential Customers9%- Customer acquisition and prospecting
  • 1. Business development activities
  • 2. Communications with the public
Topic 3: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives11%- Customer accounts and documentation
  • 1. Account types and registrations
  • 2. Suitability and customer profile
  • 3. Customer identification requirements
Topic 4: Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions7%- Trade execution and settlement
  • 1. Settlement and confirmations
  • 2. Books and records requirements
  • 3. Trade processing
  • 4. Order handling

FINRA General Securities Representative Examination (GS) Sample Questions:

1. A CMO is issued that has three tranches. One has an average life of 2 years. A second has an average
life of 10 years. The third has an average life of 30 years. Initially, interest payments are distributed in this
order:

A) equally to all CMO holders of any tranche
B) first to the holders of the 10-year tranche
C) first to the holders of the 2-year tranche
D) first to the holders of the 30-year tranche


2. Municipalities are most likely to issue notes for which of the following purposes?

A) repairs to infrastructure
B) long-term financing
C) federal income tax payments
D) short-term cash needs


3. In order to determine the amount of estate tax due, if any, the assets of a decedent's estate are valued as
of the date of death. A second evaluation is then made:

A) six months after the date of death
B) at any time up to six months after the date of death
C) three months after the date of death
D) one year after the date of death


4. Which of the following are direct obligations of the US government?

A) both B and C
B) Import-Export bank bonds
C) Farm Credit System bonds
D) Series EE bonds


5. Bubba Corporation issued bonds that pay interest on January 15 and July 15 each year until maturity. An
investor purchasing these bonds on Monday, April 12, must pay the contract price plus accrued interest
for:

A) 89 days
B) 93 days
C) 90 days
D) 87 days


Solutions:

Question # 1
Answer: A
Question # 2
Answer: D
Question # 3
Answer: A
Question # 4
Answer: D
Question # 5
Answer: C

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