Weakness series 7 close

Question 1

nonqualified plans

Answer 1

non discrimination rules not applicable

deferred compensation- for highly comensated employees a few years from retirement

payroll deduction-authorize employer to deduct certain amount
section 457

Question 2

trading halt

Answer 2

options stop trading . no trading can occur

open orders may be canceled and options can still be exercised

Question 3

Once payment and delivery instructions are established at the time the account is opened they can be changed for

Answer 3

be changed for individual transactions, or going forward, for all transactions

Question 4

A control relationship exists if someone represents

Answer 4

both an issuer and municipal securities dealer.

Question 5

Build america bonds

Answer 5

Created under the Economic Recovery and Reinvestment Act of 2009 to assist in reducing costs to issuing municipalities and stimulate the economy, Build America Bonds (BABs) are taxable municipal securities. There are two types: Direct payment BABs that provide the municipal issuer with payments from the U.S. treasury and Tax credit or Issuer BABs that provide the bondholder with a federal income tax credit.

Question 6

do unlisted options trade in the secondary market

Answer 6

Unlike listed options, unlisted options do not trade continuously in an organized secondary market; trades are negotiated between individuals.

Question 7

A municipal bond in default is in good delivery form if

Answer 7

municipal bond must be accompanied by all unpaid coupons: past due, currently due, and subsequently due. Insurance or letters of guarantee do not constitute good delivery.

Question 8

Which of the following is typically the largest component of a corporate underwriting spread?

Answer 8

the concession

Question 9

What is the size of one LEAPS contract?

Answer 9

100 shares

Question 10

An accumulation unit in a variable annuity contract is:

Answer 10

an accounting measure used to determine the contract owner’s interest in the separate account.

Question 11

otc market what kind

Answer 11

negotiated

Question 12

Which of the following insures general obligation bonds?

Answer 12

National Public Finance Guarantee Corp. and AMBAC.

Question 13

In a new margin account, for first trades between $2,000 and $4,000 the initial margin requirement is

Answer 13

2000

Question 14

widen and

narrow and

Answer 14

exercise

expire

Question 15

To determine the winning bid on an NIC (net interest cost) basis, an issuer will do which of the following?

Answer 15

Subtract any premium from total interest cost.

Add any discount to total interest cost.

Question 16

Unlike Coverdell ESAs, the income level of the contributor will not affect annual contributions under a

Answer 16

529

Question 17

Orders in a discretionary account are not considered

Answer 17

unsolicited

Question 18

When determining a position limit, a member firm aggregates which of the following customer positions?

Answer 18

ones on same side of market

Question 19

mini max is be or fc

Answer 19

fc

Question 20

Under MSRB rules, which of the following yields for a callable bond would be shown on a confirmation?

Answer 20

Yield based on nearest in-whole call

Question 21

In a municipal underwriting, the order period is the time in which the syndicate:

Answer 21

manager delivers the certificates to each syndicate member.

Question 22

In a new municipal offering, who is responsible for hiring bond counsel?

Answer 22

issuer

Question 23

The risk of a bond decreasing in value during periods of inflation is known as:

Answer 23

interest rate risk

Question 24

Government National Mortgage Association (GNMA) securities are subject to both

Answer 24

state and federal income tax and are backed by residential mortgages.

Question 25

Declining inflation means

Answer 25

declining interest rates