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Series 7 Exam 4|43 Questions with Verified Answers,100% CORRECT
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Series 7 Exam 4|43 Questions with Verified Answers
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Series 7 Exam 4|43Questions with Verified Answers#130.
Costs associated with variable annuities that are not included in the sales charge
may include
a)
Investment management fees and administrative expenses.
b)
Premium taxes.
c)
Mortality risk fee and expense risk fee.
d)
All of the above. - CORRECT ANSWER D.
These charges are not included in the sales charge. Depending upon the contract,
all are possible expenses or ongoing charges that are deducted from the separate
account.
#129.
A prospectus can no longer be used if financial information is older than
a)
90 days.
b)
12 months.
c)
13 months.
d)
16 months. - CORRECT ANSWER D.
A prospectus must contain current information about the investment company,
and therefore, a prospectus that includes financial information more than 16
months old can no longer be sent out to prospective customers.
,#128.
The NAV of a mutual fund is $15 per share and the sales charge is 8%. The POP is
a)
$13.80.
b)
$15.80.
c)
$16.30.
d)
$17.00. - CORRECT ANSWER C.
To calculate the POP, use this formula: NAV/(100% - sales charge); $15/(100%-
8%); $15/.92 = $16.30.
#124.
The MSRB's anti-money laundering rules require that a municipal broker/dealer's
procedures contain I. An employee training program. II. A designated
independent party to test the procedures. III. Perpetrator forfeiture rules. IV. SRO
reporting procedures.
a)
I and II
b)
I and IV
c)
II and III
d)
III and IV - CORRECT ANSWER A.
In addition, the procedures must contain features to detect suspicious activity and
money laundering activity as well as customer identification procedures.
#120.
XYZ Corp is planning a subsequent primary offering to raise additional capital for
expansion. One of the executives at XYZ Corporation has a large holding of
unregistered shares which he would like to sell in the open market. Which of the
following would be the most suitable offering for this situation?
, a)
Registered secondary
b)
Subsequent primary
c)
Shelf offerings
d)
Combined offering - CORRECT ANSWER D.
#114.
A corporation can avoid registration requirements in the issuance of securities by
engaging in a private placement under
a)
Rule 144.
b)
Rule 147.
c)
Regulation D.
d)
Regulation A. - CORRECT ANSWER C.
private placement conditions are covered under reg D.
#112.
Which of the following is NOT a characteristic of SIMPLE plans?
a)
There are liberal loan provisions for hardships.
b)
They are available to employers with 100 or fewer employees.
c)
No other qualified plan can be in place.
d)
There is a mandatory employer match up of up to 3% of an employee's salary. -
CORRECT ANSWER A.
SIMPLE plans are available to employers with 100 or fewer employees. Loans are
not permitted with SIMPLE plans.
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