Series-7 Questions Bank

Series 7 General Securities Representative Qualification Examination (GS) Questions and Answers

Question 69

Bubba buys a municipal bond at a discount and holds it to maturity.

Which of the following is true?

interest is taxable as ordinary income

the capital gain is tax exempt

interest is tax exempt, but the capital gain is taxable

the capital gain is tax exempt, but the interest is taxable as ordinary income

Question 70

Bubba decides to buy equity securities. Which of the following statements is always true about what Bubba is buying?

they are readily marketable

they have a fixed rate of return

they have a fixed maturity date

they are not secured by collateral

Question 71

On which of the following is depreciation permitted?

rental property whose value is declining

residential property not used for business

property whose maintenance exceeds the investment credit

equipment subject to recapture

Question 72

Which of the following option positions is indicative of the same class of option?

long one XYZ July 70 put and one XYZ July 70 call

long one XYZ October 20 call and one XYZ January 30 call

short one XYZ February 60 put and one ABC February 60 put

short one XYZ June 40 call and one ABC June 20 call