Series 7 final review

76 terms by hausebrent

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what rate is the least sensitive to FRB monetary policy?

pass book savings rate

a two quarter mild decline in general business activity is a...

recession

do warrants have intrinsic value?

no

what wont affect the value of a foreign currency

fixed exchange rates

all of the following regarding federal funds are true except...

fed funds are excess treasury reserves

which of the following is a characteristic of the interbank system?

it is affected by central bank intervention

what would be required in order to effect good delivery of a book-entry security?

contact the issuer's transfer agent

a change in the number of help wanted signs would be a __________ indicator

leading

The minimum tbill denomination is...

10K

which of the following are characteristics of treasury receipts?

all of the above

all of the following are true regarding municipal dollar bonds except...

they dont trade on a ytm basis

a dealer wishing to purchase t bills for resale would purchase them from...

the us treasury

during periods when rates are ascending, what rates rates are more sensitive?

short term rates

the obligations of which agency are backed by the full faith and credit of the gov't and pay monthly interest and principal

GNMA

What securities trade "and interest?"

CD's

forced conversion or redemption?

conversion

term bond quotes are based on a...

dollar price

what source provides data regarding called bonds?

S&P called bond report

the normal denomination for municipal bonds is units of...

5K

which of the following are issuers of agency securities?

when in doubt - all of them

Corporate bonds are issued in denominations of...

1K

Minimum treasury bill denomination

1K

if an investor continually rolls over treasuries the result will be...

fluctuating returns but safety of principal

what information would appear on a "when, as, and if issued confirmation"?

principal or agent capacity

US government securities are traded by everyone except

Gov't securities trust accounts

what are characteristics of municipal dollar bonds?

term and % of par

call provisions are detailed in the...

official statement

a bond counsel would not evaluate...

local ordinances and statutes

quotation/accrual of agency securities

quoted in 32nds; accrue on 30/360 day year

a customer has two identical bonds except for coupon - one is 8% and one is 9% - if rates change, which one's price changes more?

the 8% bond - lower yields are more sensitive to interest changes than higher yields

given two bonds that are identical in all ways except for yield, which one will be more sensitive to interest rate changes - higher yielding bonds or lower yielding bonds?

the lower yielding bonds

all of the following may issue debt securities except for the...

FRB

An unaffiliated investor wants to sell unregistered stock - the amount he may sell is based on his sales during the past___ days?

90 days

how are expenses to a municipal syndicate allocated?

according to their underwriting participations

In a new municipal underwriting, the underwriters decide everything expect the...

length to maturity

how is most restricted stock acquired?

private placements

all of the following may be used to pay the interest and principal on a municipal revenue bond except the...

capitalized interest

when would a muni dealer submit a sealed bid? what type of offering?

competitive offering

a shelf registration under rule 415 allows for the distribution of securities by an issuer over a period of how long?

3 years

in a competitive underwriting of a municipal general obligation bond which of the following would a syndicate submitting a sealed bid on the offering first determine?

the scale

everything is included in the analysis of a municipality's net bonded debt except:

self-supporting revenue bonds

a municipal securities investment trust sold nation wide must be registered with the...

SEC

all of the following are exempt from registration except... (eurodollars, ADR, municipal securities, US gov't debt)

ADR

According to rule 144, when must form 144 be filed with the SEC?

concurrent with the placement of the sell order

return on equity =

net income/shareholders' equity

a municipal securities dealer could obtain information regarding municipal bond offerings from all but the following? (munifacts wire, blue list, moody's quarterly handbook, broker's wire)

moody's quarterly handbook

Reg A offerings can only be made for (2 things)

5 million in one year, and only to residents in the state of the issuer

the following would not indicate a deterioration of creditworthiness -

increase in assessed valuation of properties (increase in tax rates would)

in what type of offerings is an underwriter acting as an agent?

all or none; best efforts

which of the following best measures market activity in the NYSE, AMEX and the OTC?

the value line

the credit analysis of a municipal airport revenue bond would include an examination of all of the following except... (competing facilities, overlapping debt, debt coverage ration, flow of funds)

overlapping debt

which of the following would be a prohibited purchaser under the NASD freeriding and withholding rule?

a family member of a registered representative

4th market

trading of blocks of exchange listed securities PRIVATELY OTC between firms

3rd market

trading of blocks of exchange listed securities publicly OTC

from which of these would you obtain OTC quotes on equities?

all but the blue list

which of the following are true regarding NASDAQ level II securities?

B

"A" on a quote system equals...

PSE

the third market quoted is the...

NASD

the 4th market quoted is...

instinet

Under MSRB rules, a municipal securities trader participating in a secondary market joint account would be prohibited from engaging in which of the following activities?

providing quotes indicating that more than one market exists for the securities in the joint account

an order that must be filled in its entirety in one attempt or canceled is a ...

fill or kill

an orde rthat must be filled in one or more attempts withing a designated period or canceled is a...

AON

which of the following orders may not be left with the specialist on the floor of the NYSE

market not held

A bank qualfied municipal issue is...

a municipal bond issue that allows the bank to deduct 80% of its related interest carrying expense

a firm must keep track of all of the following regarding a seminar except...

the names of the people attending the seminar

whats the call?

how much is required for deposit

what organization is responsible for approving the margining of unlisted stocks?

the FRB

under MSRB rules, a registered rep can do everything except...

supervise other registered reps

an investor adviser would be permitted to effect transactions in which of the following accounts?

special omnibus account and a client account with trading authority given to the investment adviser

a client of a registered representative is the general partner in a private placement limited partnership and asks the RR for assistance in selling interest in the program. Which of the following statements is correct?

the RR may participate if the offering is cleared through the compliance department of the firm

the strike prices and premiums of foreign currency options are quoted in...

american currency only

S&P index options -- .1 = ? 1 point = ?

.1 = $10; 1 point = $100
___
___
1200 --> 1201 = $100 change in contract price

what is a utilities beta?

slightly below 1 (blatantly false)

an investor most interested in capital appreciation should invest in a...

sector fund

the underwriter of an open end fund is called the...

sponsor

payments from keogh plans are considered -

ordinary income

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