76 terms

Series 7 final review

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...
do warrants have intrinsic value?
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
The minimum tbill denomination is...
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
What securities trade "and interest?"
forced conversion or redemption?
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...
which of the following are issuers of agency securities?
when in doubt - all of them
Corporate bonds are issued in denominations of...
Minimum treasury bill denomination
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...
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...
all of the following are exempt from registration except... (eurodollars, ADR, municipal securities, US gov't debt)
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?
"A" on a quote system equals...
the third market quoted is the...
the 4th market quoted is...
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...
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...
payments from keogh plans are considered -
ordinary income