FINRA FINRA Municipal Securities and Fixed Income

Question 1

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

Accepted Answer

Series 52

Answer

Series 63

Answer

Series 7

Answer

Series 65

Question 2

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

Accepted Answer

MSRB

Answer

FINRA

Answer

SEC

Answer

CFTC

Question 3

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

Accepted Answer

General obligation bond

Answer

Revenue bond

Answer

Tax anticipation note

Answer

Callable bond

Question 4

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

Accepted Answer

Tolls collected from highway users

Answer

Local property taxes

Answer

Federal grant funds

Answer

State income taxes

Question 5

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

Accepted Answer

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

Answer

The current market price of the bond

Answer

The coupon rate divided by market price

Answer

The bond's yield to maturity

Question 6

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

Accepted Answer

Bond prices fall

Answer

Bond prices rise

Answer

Bond prices remain unchanged

Answer

Bond prices become more volatile only