These series 7 sample questions were taken straight from FINRA’s booklet. The questions will give you an idea of question format and content.
For more practice exam questions, with over 1700 questions and detailed explanations consider purchasing this Series 7 Practice Questions CD.
1) Closed-Stem
The stem (the part that poses the question) is a complete sentence, and thus concludes with a question mark. The options (answer choices) may be complete or incomplete sentences.
Click for an Example
(A) Direct obligations of municipalities
(B) Direct obligations of the federal government
(C) Moral obligations of a local zoning board
(D) Moral obligations of state government
Click for the Answer
2) Open-Stem (Sentence Completion)
The stem is an incomplete statement, and the options represent conclusions to the sentence.
Click for an Example
(A) purchased on credit
(B) converted into cash
(C) used as collateral
(D) transferred to other ownership
Click for the Answer
3) Most/Least/Best
This case of the multiple-choice item requires selecting an option that is either better or worse than the others. The basis on which the evaluation is to be made is stated in the stem.
Click for an Example
(A) An equal sharing agreement among limited and general partners
(B) The right of limited partners to examine partnership books and records
(C) Management by both limited and general partners
(D) Prohibitions against control by a single limited partner
Click for the Answer
4) Except or Not
The “EXCEPT” case usually is used when the task is to select the response option that is an exception to the principle or rule stated in the stem. If it is clearly more straightforward or less awkward to use “not,” rather than “except,” this is done. In either case, the stem may be open or closed.
Click for an Example
(A) professional management
(B) limited liability
(C) diversification of risk
(D) flow-through of income and expense
Click for the Answer
5) Complex Multiple-Choice (“Roman Numeral” Format)
This type of question is used in two ways. In the following example, the task is to determine the correct sequence of a set of events or the correct ranking of a set of items from high to low.
Click for an Example
I. The holding of a due diligence meeting
II. Investigation and analysis of the issuer
III. The filing of a registration statement
IV. The assignment of the effective date by the SEC
(A) I, II, III, IV
(B) II, III, I, IV
(C) III, I, II, IV
(D) IV, II, III, I
Click for the Answer
A second way in which the Roman numeral format is used is when more than one of the options may be a correct response.
Click for an Example
I. It must be preceded or accompanied by an options disclosure document.
II. It must offer supporting documentation.
III. It must contain projected performance figures for the firm’ s recommendations.
IV. It may portray past performances of a member firm’ s recommendations.
(A) I and II
(B) I and IV
(C) II and III
(D) II and I
Click for the Answer
If the stem does not state that only two of the Roman numeral options are true, the word “only” is included at the end of each lettered response option that does not include all of the Roman numerals, as in the example below.
Click for an Example
I. It must be preceded or accompanied by an options disclosure document.
II. It must offer supporting documentation.
III. It must contain projected performance figures for the firm’ s recommendations.
IV. It may portray past performances of a member firm’ s recommendations.
(A) III only
(B) I and IV only
(C) I, II and IV only
(D) I, II, III, and I
Click for the Answer
More Practice Questions
Consider purchasing a practice exam CD-ROM for further examples.
Related posts:
