FINRA Municipal Securities and Fixed Income Flashcards

Which FINRA exam series is required for individuals who underwrite, trade, or sell municipal securities?

Answer: Series 52

The Series 52 (Municipal Securities Representative) exam is required for those who underwrite, trade, or sell municipal securities.

What is the primary regulatory body that oversees municipal securities dealers and advisors in the US?

Answer: MSRB

The Municipal Securities Rulemaking Board (MSRB) is the primary self-regulatory organization for municipal securities dealers and advisors.

Which type of municipal bond is backed solely by the full faith, credit, and taxing power of the issuing municipality?

Answer: General obligation bond

General obligation (GO) bonds are backed by the full faith, credit, and taxing power of the issuing government entity.

A revenue bond issued to finance a toll highway would most likely be repaid from which source?

Answer: Tolls collected from highway users

Revenue bonds are repaid from the specific revenue generated by the project they finance, such as tolls from a highway.

What does 'par value' mean in the context of a fixed income security?

Answer: The face value at which the bond will be redeemed at maturity

Par value (face value) is the amount the issuer promises to repay the bondholder at maturity, typically $1,000 for corporate and municipal bonds.

When interest rates rise, what typically happens to the price of existing fixed-rate bonds?

Answer: Bond prices fall

Bond prices and interest rates move inversely; when rates rise, existing bonds paying lower fixed rates become less attractive, causing their prices to fall.