Online Access Free Series7 Practice Test

To qualify as an intrastate offering under SEC Rule 147, which of the following is true of the issue?

• A.it must be sold only to bona fide residents of one state
• B.it cannot exceed $1,500,000 in value
• C.it must be approved by the SEC
• D.it must consist of common stock only

When the Federal Reserve lowers reserve requirements, what is it attempting to do?

• A.raise interest rates
• B.ease credit
• C.increase the rediscount rate
• D.counter inflation

Bubba Corporation has a profit sharing plan. The company president, Bubba, is receiving the maximum
plan contribution amount. The corporation has one other employee, who is eligible for the plan. If this
person earns $12,000 per year, how much must be deposited in the plan for the employee?

• A.$6,000
• B.$1,800
• C.$3,000
• D.$12,000

Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?

• A.105.10
• B.98.96
• C.5.00
• D.100.00

Which of the following would not normally be a function of an investment banker?

• A.underwriting new issues of securities
• B.providing long-term capital needs to client companies
• C.providing short-term capital needs to client companies
• D.assisting in large secondary offerings of securities