FINRA Practice Test Flashcards
If a market maker posts a quote of 10.00 - 10.10 [25x10], which of the following actions is the market maker willing to take?
Buy 2,500 at $10.00 and sell 1,000 shares at $10.10
The computation of dollar prices and accrued interest on municipal bonds is normally on what calendar basis?
30/360
In a period of low inflation and economic recession, the Federal Reserve is expected to take which of the following actions?
Buy bonds in the open market
What does Regulations S-P do?
Protects nonpublic information
At the time of issuance, which of the following securities normally has the longest period to expiration?
Warrants
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following products does a corporation issue?
Rights
A transaction in which a writer covers a position by purchasing an option is called a?
A closing purchase
Which of the following is adversely impacted if the issuers credit rating is downgraded?
Exchange-traded notes (ETNs)
What is selling away?
Selling away is selling a security to a customer and the firm is unaware of the transaction
Stability in the value of a debt portfolio is greatest when?
Maturities of the debt securities are short
Which of the following investment risk is the greatest risk in a variable life insurance policy?
Market Risk
