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  1. Home
  2. FINRA Certification
  3. Series-7 Exam
  4. FINRA.Series-7.v2023-08-25.q249 Dumps
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Question 171

What rate of return takes into consideration appreciation or depreciation in market value relating to the par value of a debt security?

Correct Answer: B
yield to maturity. The premium or discount in the security price relative to par value is considered when computing the yield to maturity.
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Question 172

A tax-free rollover of assets between qualified retirement plans for the benefit of a specific individual is permitted so long as it is accomplished within:

Correct Answer: B
60 days. ERISA permits 60 days for rollovers.
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Question 173

Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed:
100 ABC $30
200 XYZ $70
200 QBB $40
200 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
Bubba wants to buy 100 shares of DUM at $30 per share and 100 shares of OUT at $120. How much additional money must be deposited?

Correct Answer: C
$4,500. The purchase of DUM will cost $3,000 (100 x $30) and the purchase of OUT will cost $12,000 (100 x $120). Both combined total a cost of $15,000. Reg T requires 50% ($7,500) and Bubba only has $3,000. So he is $4,500 short.
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Question 174

Which of the following items is not deducted to determine a corporation's net income?

Correct Answer: B
dividends. Net income is determined before dividends.
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Question 175

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?''

Correct Answer: A
$98,062.50. The financial institution receives the bid price, which is 98 and 2 / 32. Two thirty-seconds is $0.625. The 98 is the percentage of a $1,000 bond. Multiplying 98% by $1,000 results in $980. Add $0.625 to $980 to arrive at $980.625 per bond. But ...there are 100 bonds. So, multiplying $980.625 by 100 equals $98,062.50.
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