Free FINRA Series-7 Practice Exam Questions and Answers 2026

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Total 405 Questions | Updated On: Apr 01, 2026

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Question 1

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 : special tax bonds issued by municipalities

C : revenue bonds issued by municipal port authorities

D : new housing authority bonds issued by a public housing authority

Answer: D

Question 2

A call option is in the money when the market value of the underlying stock is:

A : lower than the strike price of the option

B : the same as the strike price of the option

C : higher than the strike price of the option

D : higher than the strike price plus the premium

Answer: C

Question 3

An investment company incapable of issuing a long-term debt instrument is:

A : a face-amount certificate company

B : a unit investment trust

C : a closed-end investment company

D : an open-end investment company

Answer: D

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:

A : 10 5/8

B : 19 7/8

C : 23 1/2

D : 5?ove cost

Answer: B

Question 5

Bubba is opening a margin account with a member organization. He wishes to purchase 100 shares of XYZ at $15 per share. What is Bubba’s initial cash deposit?

A : $375

B : $1,050

C : $1,500

D : $2,000

Answer: C

Page: 1 / 81

Total 405 Questions | Updated On: Apr 01, 2026

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