- Exam Code: Series7
- Exam Name: General Securities Representative Examination (GS)
- Updated: Sep 08, 2026
- Q & A: 400 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Regulatory requirements for transaction processing - Order types and execution procedures - Trade settlement and confirmation rules |
| Topic 2: Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Account types and documentation requirements - Suitability rules and regulatory compliance - Financial profile, risk tolerance, and investment objectives |
| Topic 3: Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Municipal securities - Options and derivative products - Direct participation programs - Debt securities and government obligations - Margin accounts and taxation - Recordkeeping and regulatory reporting - Equity securities - Investment companies, ETFs, and variable annuities |
| Topic 4: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Standards for advertising and public communications - Product-specific disclosures and regulatory requirements - Customer communication and solicitation rules |
Question 1
What does the bond buyer placement ratio represent?
A. the par value amount of municipal bonds offered in the Blue List as a percentage of the 30-day visible
supply for competitive and negotiated issues
B. the amount of municipal bonds offered in the daily Blue List as a percentage of the day's new issue
amounts of more than $1 million
C. the amount of municipal bonds distributed weekly as a percentage of each week's new issue accounts
of more than $1 million
D. the amount of municipal bonds held by banks and insurance companies as a percentage of municipal
bonds outstanding
Question 2
What is represented by the net investment income of an open-end investment company?
A. net profits from the investment company operation
B. net income from dividend and interest paid on securities in the fund portfolio
C. dividends, interest, and net gains on sales of securities
D. net gains on sales of portfolio securities
Question 3
Which of the following is not a marketable security?
A. municipal bonds
B. Series EE bonds
C. treasury bonds
D. tax anticipation bonds
Question 4
Prospective bidders for a municipal bond being issued should consult what document for relevant
procedures?
A. the offering circular
B. the Eastern account agreement
C. the SEC Registration Statement
D. the official notice of sale
Question 5
Which of the following municipal securities carries the full faith and credit of the US government for
payment of interest and principal if the issuer's funds are insufficient?
A. general obligation bonds issued municipalities
B. new housing authority bonds issued by a public housing authority
C. special tax bonds issued by municipalities
D. revenue bonds issued by municipal port authorities
Solutions:
| Question 1 Answer: C | Question 2 Answer: B | Question 3 Answer: B | Question 4 Answer: D | Question 5 Answer: B |
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