RN Domain 8: Health Promotion and Maintenance (Quiz 1) Welcome to your Series 7 Practice Quizzes. Note: We designed four (4) parts of practice quizzes for each Domain. Each part has 25 questions. Domain 1 (part 2): Seeks Business for the Broker Dealer from Customers and Potential Customers​​​​​​​. (25 questions) Please click NEXT to start your Free Series 7 Practice Quizzes right away. Best of Luck! 1. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 A registered representative is preparing a PowerPoint slide presentation, to be delivered in a live seminar, for a group of invited institutional clients. To use the slides, they may have to be A) reviewed by a principal of the broker-dealer. B) submitted to both FINRA and the SEC for preuse approval. C) submitted to the SEC for review and approval. D) approved by FINRA in writing. None 2. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 If another member broker-dealer has already received clearance from FINRA for a retail communication, filing the piece with FINRA so that your broker-dealer can now use it A) must be done 10 days before your broker-dealer can use it, even if unaltered. B) is not necessary if unaltered and used as originally intended. C) must be done before publication by your broker-dealer, whether it is altered or unaltered. D) must be done within three days after use by your broker-dealer, even if unaltered. None 3. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 A principal of a member firm with the responsibility of supervising registered representatives would perform all of the following duties except A) approve each securities transaction, whether for retail or institutional customers. B) approve the opening of all new accounts, whether for retail or institutional customers. C) review a registered representative's correspondence with the firm's customers in accordance with the firm's written procedures. D) write all sales material and advertising copy intended to be used as a means of communicating with the public. None 4. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 All of the following communications are exempt from filing with FINRA except A) prospectuses and preliminary prospectuses. B) retail communications that make a financial or investment recommendation. C) communications that refer to an investment solely as part of a listing of products offered by the member. D) retail communications previously filed with FINRA. None 5. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 A registered representative may never A) act as a buyer's agent. B) approve advertising. C) act as a broker. D) act as a sales agent. None 6. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Municipal securities advertisements must be approved by A) the Municipal Securities Rulemaking Board. B) a municipal securities or general securities principal. C) the Securities and Exchange Commission. D) a financial and operations principal. None 7. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Which of the following is not a factor when a communication to be distributed to the public is either being reviewed or approved within the broker-dealer? A) Whether the piece will be distributed in written form or via electronic media B) The nature of the audience to which the communication is intended to be distributed C) Whether achieving past performance results has been implied D) Whether statements of benefits are balanced with statements of potential risks None 8. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Popular Investment Securities, a FINRA member firm, produces short videos describing the general characteristics of different types of securities. Periodically, an interstitial appears during the video. Under FINRA's rules on communications with the public, A) the appearance of the interstitial defines the video as retail communication requiring filing. B) video presentations of any kind must be filed with FINRA within 10 days after first use. C) as long as the presentation is strictly generic, filing with FINRA is not required. D) interstitials may not be used in public communication without the consent of the viewer. None 9. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Advertising relating to municipal securities must be approved by which of the following? A) A designated supervisory analyst B) The Securities and Exchange Commission (SEC) C) The Municipal Securities Rulemaking Board (MSRB) D) A general securities principal or municipal securities principal None 10. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Which of the following statements could legally appear in mutual fund advertising or sales literature? A) Our managers are dedicated to giving you the very best service. B) Our growth fund net asset value will increase faster than the market in general. C) The fund never yielded less than 8% and will continue at that rate in the future. D) Our management is unequaled in the investment industry. None 11. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Which of the following observations may a registered representative make when giving a sales presentation based on performance statements and charts? A) Yield over the past five years has fluctuated between 6% and 8%, indicating it will continue at 6% or better. B) The portfolio's broad diversification will ensure the continuation of the 6% yield. C) The fund has had a positive performance in the past few years. D) The fund has consistently outperformed the market and should continue to do so. None 12. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Under Options Clearing Corporation (OCC) rules regarding options communications with the public, if an educational piece making no projected performance figures or recommendations is distributed to customers, it A) need not be preceded by an options disclosure document (ODD). B) can only be distributed to retail customers. C) need not be approved by a registered options principal (ROP). D) can only be distributed to institutional customers. None 13. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Démodé Classic Investments (DCI) is planning a direct mail campaign to several thousand potential investors. The topic of the campaign deals with owning real estate through direct participation program limited partnerships. Under FINRA Rule 2210 on communications with the public, this is considered A) a retail communication and must be filed with FINRA at least 10 business days before first use or publication. B) a retail communication that needs approval, but not filing, by a designated DCI principal. C) correspondence and needs review, not approval, by a designated DCI principal. D) a retail communication and must be filed with FINRA within 10 business days of first use or publication. None 14. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Pristine Brokerage Services, (PBS), accepted as a FINRA member firm seven months ago, is planning a direct mail campaign to several thousand potential investors. The topic of the campaign deals with owning real estate through direct participation programs. Under FINRA Rule 2210 on communications with the public, this is considered A) a retail communication that needs approval, but not filing, by a designated PBS principal. B) correspondence and needs review, not approval by a designated PBS principal. C) a retail communication and must be filed with FINRA at least 10 business days before first use or publication. D) a retail communication and must be filed with FINRA within 10 business days of first use or publication. None 15. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Which of the following statements is an accurate interpretation of FINRA Conduct Rules governing the use of communications with the public? A) Institutional communications need not be preapproved by a principal. B) Sales and product promotion materials distributed to registered representatives and other employees are retail communications and must be submitted for FINRA review, even though such materials are not intended for public distribution. C) All retail communications must be filed with FINRA before first use. D) All communications with individual clients are considered retail communications. None 16. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Filing with FINRA within 10 business days of first use is required for all of the following except A) retail communications concerning public direct participation programs (DPPs), B) retail communications that promote or recommend a specific registered investment company or family of registered investment companies including exchange-traded funds (ETFs). C) retail communications concerning collateralized mortgage obligations (CMOs) registered under the Securities Act, D) retail communications that promote or recommend a specific real estate investment trust (REIT). None 17. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 All the following retail communications must be prefiled with FINRA except A) retail communications concerning investment companies with custom ratings. B) retail communications concerning public DPPs. C) retail communications concerning the member firm's opening for business last month. D) retail communications concerning options without previously providing an ODD. None 18. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Under FINRA's Rule 2210 on communications with the public, which of the following is excluded from the filing requirements? A) Correspondence with prospective clients that is delivered through electronic media B) Retail communications concerning public direct participation programs C) Retail communications that previously have been filed with FINRA and that are to be used with material change D) Retail communications concerning collateralized mortgage obligations registered under the Securities Act of 1933 None 19. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 All of the following may be included in an advertisement for a collateralized mortgage obligation (CMO) issue except A) a generic description of the CMO tranche. B) a disclosure of the CMO's coupon rate and final maturity date. C) a statement that the CMO is guaranteed by the U.S. government. D) a disclosure that payment assumptions may or may not be met. None 20. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 Guarantees on insurance products A) are permissible for principal values in the separate account. B) are only permissible for companies with an A+ rating from A.M. Best. C) must be specific to the insurance contract and not associated investments. D) are not allowed. None 21. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 All of the following are excluded from the FINRA filing requirement for communications with the public except A) correspondence. B) retail communications posted on an interactive forum online. C) retail communications posted online that require a login to access. D) retail communications that only identify the member firm. None 22. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 The ABC Insurance Company is advertising its variable annuity product as "ABC Lifetime Income—income generated from mutual fund returns." This advertisement is A) permitted. B) prohibited because it doesn't reference an annuity. C) prohibited because it implies returns from mutual funds. D) permitted as long as there's no guarantee. None 23. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 In a competitive offering of municipal bonds, the issue is usually awarded to the syndicate that offers to sell the bonds A) with the lowest net interest cost to the issuer. B) with the smallest spread. C) at the highest price. D) in the shortest possible time. None 24. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 For the underwriting of a municipal bond issue, competitive bids are submitted by underwriters as A) a firm commitment. B) a standby underwriting commitment. C) an all-or-none commitment. D) a best efforts underwriting commitment. None 25. Series 7, Seeks Business for the Broker Dealer from Customers and Potential Customers,Series 7 A syndicate member in a municipal underwriting wishes to place an order with the manager for its own portfolio. Under Municipal Securities Rulemaking Board rules, an order for a related portfolio must be A) entered as a designated order. B) entered as a group order. C) entered as a presale order. D) disclosed to the manager. None 1 out of 25 Time is Up! Time's up
