Series 7

Series 7 practice questions, page 14 of 16, with answer review and explanations.

Question 66

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

  1. Import-Export bank bonds
  2. Series EE bonds
  3. Farm Credit System bonds
  4. both B and C

Question 67

A financial institution requesting a quote on a block of 100 bonds from a dealer in government securities receives a quote of 98.02 bid, 98.06 asked. What is the dollar amount the institution will receive if the financial institution sells these bonds to the dealer?

  1. $98,062.50
  2. $98,187.50
  3. $98,250.00
  4. $98,750.00

Question 68

Bubba plans to borrow some money and pledge securities as collateral. Which of the following can he not use as collateral?

  1. Series EE bonds
  2. US treasury bills
  3. US treasury notes
  4. US treasury bonds

Question 69

Big Easy Investment Banking, Inc., is participating in an Eastern account underwriting of $10 million of municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold but Big Easy has distributed $1.5 million of bonds. What is the liability of Big Easy remaining in the account?

  1. $0
  2. $400,000
  3. $600,000
  4. $1,000,000

Question 70

Big Easy Investment Banking, Inc., participates in a Western account underwriting of $10 million of municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold but Big Easy has distributed $1.5 million of bonds. What is the liability of Big Easy remaining in the account?

  1. $0
  2. $400,000
  3. $600,000
  4. $1,000,000