Free SERIES 7 Exam Braindumps (page: 11)

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Commercial paper is typically issued with a maturity date not exceeding:

  1. 90 days
  2. 6 months
  3. 270 days
  4. 1 year

Answer(s): C

Explanation:

270 days. A characteristic of commercial paper is relatively short duration, normally not exceeding 270 days.



The minimum denomination for a US treasury bond is:

  1. $100
  2. $1,000
  3. $10,000
  4. $100,000

Answer(s): B

Explanation:

$1,000. This is the minimum denomination. Normally, US treasury bonds are in much larger denominations.



Which of the following has the least active secondary market?

  1. treasury bills
  2. banker’s acceptances
  3. certificates of deposit
  4. commercial paper

Answer(s): D

Explanation:

commercial paper. The sizes of secondary markets for these securities are listed in order with treasuries first, then banker’s acceptances, followed by certificates of deposit. There is only a very small secondary market for commercial paper.



Which of the following is not classified as a money market instrument?

  1. banker’s acceptances
  2. commercial paper
  3. American Depository Receipts
  4. treasury bills

Answer(s): C

Explanation:

American Depository Receipts. American Depository Receipts are used to facilitate transfer of ownership in foreign securities. They are not money market instruments.






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