Online Access Free Series7 Exam Questions

Who owns a corporation?

• A.the government
• B.the owners of debentures
• C.the holders of common stock
• D.the holders of common stock and the holders of preferred stock

An "accumulation unit" of a variable annuity is used to determine which of the following?

• A.the amount to be passed to the annuitant's beneficiary
• B.the amount of annuity payments to be paid to the owner
• C.the amount returned to the annuitant upon redemption of the account
• D.the value of the annuitant's contract before annuity payments begin

A CMO is issued that has three tranches. One has an average life of 2 years. A second has an average
life of 10 years. The third has an average life of 30 years. Initially, interest payments are distributed in this
order:

• A.equally to all CMO holders of any tranche
• B.first to the holders of the 10-year tranche
• C.first to the holders of the 2-year tranche
• D.first to the holders of the 30-year tranche

Which of the following registered investment companies normally sells with an appropriate commission
added to the contract price?

• A.a closed-end investment company
• B.a unit investment trust
• C.a face-amount certificate company
• D.an open-end investment company

Which of the following does not decrease basis?

• A.depletion of real property
• B.cash or property paid out
• C.losses
• D.income from extraordinary sources