Series 7

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

Question 31

The minimum denomination for a US treasury bond is:

  1. $100
  2. $1,000
  3. $10,000
  4. $100,000

Question 32

Which of the following has the least active secondary market?

  1. treasury bills
  2. banker’s acceptances
  3. certificates of deposit
  4. commercial paper

Question 33

Which of the following is not classified as a money market instrument?

  1. banker’s acceptances
  2. commercial paper
  3. American Depository Receipts
  4. treasury bills

Question 34

Which of the following is not a characteristic of treasury bills?

  1. they are quoted on yield-to-maturity percentages
  2. their payments are exempt from state income tax
  3. the bid price is higher than the offer price
  4. they mature one to three years from the date of issuance

Question 35

Which of the following price quotes is representative of a treasury bill?

  1. 98.9 - 100
  2. 96 - 96½
  3. 5.78 - 5.73
  4. 5.55 - 5.75