Question 1

A financial institution requesting a quote on a block of 100 bonds from a dealer in

government securities receives a quote of 98.02 bid, 98.06 asked.

What is the dollar amount the institution will receive if the financial institution sells these

bonds to the dealer?’’

Options :

A : $98,062.50

B : $98,187.50

C : $98,250.00

D : $98,750.00

Answer: A

Question 2

Bubba decides to buy equity securities. Which of the following statements is always true about what Bubba is buying?

Options :

A : they are readily marketable

B : they have a fixed rate of return

C : they have a fixed maturity date

D : they are not secured by collateral

Answer: D

Question 3

Which of the following pays interest at maturity only?

Options :

A : a corporate serial bond

B : US treasury bills

C : Income bonds

D : Series H savings bonds

Answer: B

Question 4

A dealer buys 100 shares of XYZ common, which is an actively traded stock, at 23.50.

Three days later, when XYZ common is quoted at 19.50 - 19.75, he sells the 100 shares to a customer. The basis for the dealer’s markup is:

Options :

A : 10 5/8

B : 19 7/8

C : 23 1/2

D : 5?ove cost

Answer: B

Question 5

The FINRA markup policy applies to:

Options :

A : agency sales OTC

B : principal transactions in municipal bonds

C : mutual fund sales

D : new issues of corporate securities

Answer: A