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

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

Question 2

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

Accepted Answer

MSRB

Answer

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

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

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

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

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

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

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

(FINRA) FINRA Exams Practice Test