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FINRA General Securities Representative Examination (GS) Sample Questions:
1. Bubba decides to buy equity securities. Which of the following statements is always true about what
Bubba is buying?
A) they have a fixed maturity date
B) they are readily marketable
C) they are not secured by collateral
D) they have a fixed rate of return
2. Bubba buys a municipal bond at 102 and holds it ten years to maturity. For tax purposes, how is that
premium treated?
A) amortized over the life of the bond resulting in no loss at maturity
B) carried forward as a premium loss applied against profits realized on future municipal securities
C) an ordinary loss taken as a deduction from taxable income
D) recorded as a long-term capital loss
3. Bubba want to buy a CMO. In general, how often should he expect to receive interest payments?
A) at maturity
B) every month
C) every week
D) every year
4. Under Regulation T, when must money be deposited to cover requirements for Bubba's new purchases
on margin?
A) on the day of the trades
B) no later than the fifth business day after the trades
C) no later than the seventh business day after the trades
D) on the next business day following the trades
5. Bubba buys municipal bonds with a $100,000 principal amount at 89 on margin. His account has no cash
or securities. What is his minimum required deposit?
A) $22,500
B) $13,350
C) $50,000
D) $5,080
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: B |







