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FINRA General Securities Representative Examination (GS) Sample Questions:

1. What is the term applied to a classification of CMO securities having a stated maturity, average life, and
estimated yield?

A) tier
B) bucket
C) tranche
D) bracket


2. Which of the following rights does an ADR holder not have?

A) the right to see financial statements
B) the right to transfer ownership
C) preemptive rights
D) the right to vote for your mother-in-law as a board member


3. Big Easy Investment Banking, Inc., participates in a Western account underwriting of $10 million of
municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold
but Big Easy has distributed $1.5 million of bonds. What is the liability of Big Easy remaining in the
account?

A) $600,000
B) $400,000
C) $1,000,000
D) $0


4. In a 401(k) plan, when are employee's contributions of compensation deferral vested?

A) the same as the employer's contributions
B) after 5 years
C) immediately
D) after 2 years


5. Bubba Corporation owes income tax. Which of the following may be tendered at par value for payment of
the tax?

A) term bond
B) special tax bond
C) pre-issue bond
D) tax anticipation bill


Solutions:

Question # 1
Answer: C
Question # 2
Answer: C
Question # 3
Answer: C
Question # 4
Answer: C
Question # 5
Answer: D

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