Free SERIES 7 Exam Braindumps (page: 27)

Page 26 of 101

Which of the following municipal bonds may be grouped under the classification of “revenue bonds”?

  1. special tax
  2. new housing authority
  3. general obligation
  4. limited tax

Answer(s): A

Explanation:

special tax. The other categories are not revenue bonds. Special tax is the only type that fits the general grouping.



Which of the following receives the highest priority of a municipal bond trustee when applying income and revenue derived from a financed toll facility?

  1. renewal and replacement fund
  2. operation and maintenance fund
  3. bond service account fund
  4. reserve maintenance fund

Answer(s): B

Explanation:

operation and maintenance fund. This receives the top priority followed by debt service, maintenance reserves, and lastly renewal and replacement.



In what broad category of municipal bonds are “limited tax” bonds placed?

  1. general obligation
  2. special tax
  3. revenue
  4. new housing authority

Answer(s): A

Explanation:

general obligation. A limited tax bond is generally classified as general obligation.



What is the name for the rate of discount from the list price that is paid to a municipal securities underwriting group member for its sales participation?

  1. commission
  2. concession
  3. spread
  4. takedown

Answer(s): D

Explanation:

takedown. The takedown is an additional allowance on bonds sold by a member.






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