Free SERIES 7 Exam Braindumps (page: 26)

Page 25 of 101

Which of the following does not appear in a municipal syndicate letter to underwriters?

  1. the specific bid and offering terms of the issue
  2. the amount of each member’s participation
  3. the extent of the manager’s authority in directing the offering
  4. the duration of the syndicate account

Answer(s): A

Explanation:

the specific bid and offering terms of the issue. The bid and offering terms are determined after the syndicate letter to underwriters.



Which of the following sources provides news of prospective municipal securities sales to underwriters?

  1. the Blue List
  2. the daily Bond Buyer
  3. the SEC News Digest
  4. The Wall Street Journal

Answer(s): B

Explanation:

the daily Bond Buyer. News is covered in the daily Bond Buyer as well as Munifacts, which is operated by the daily Bond Buyer. The Blue List shows only current offerings, not prospective ones.



Under a leaseback arrangement used to finance construction of local schools, who is the issuer of the municipal bonds?

  1. the state in which the schools are located
  2. the local school district
  3. a legal authority created for this purpose
  4. a public housing authority commissioned by the federal government

Answer(s): C

Explanation:

a legal authority created for this purpose. Bonds with a leaseback arrangement are issued by a specially created entity.



Who obtains and pays the municipal bond attorney rendering a legal opinion about the validity of the bond issue?

  1. the purchaser of the bonds
  2. the underwriter
  3. the issuing municipality
  4. the municipality’s financial adviser

Answer(s): C

Explanation:

the issuing municipality. The issuer pays for the attorney.






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