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FINRA General Securities Representative Examination (GS) Sample Questions:
1. A mutual fund custodian is paid according to which of the following specifications when receiving deposits
from a shareholder's reinvestment plan?
A) a percentage of the fund's net asset value
B) a processing fee
C) a percentage of the sales charge
D) a commission for each share purchased
2. Which of the following is not true about mutual funds and variable annuities?
A) the payout of each depends on the investment results of the securities owned in the portfolio
B) each is regulated under the Investment Company Act of 1940
C) the registered representative must have FINRA registration to solicit either one
D) the holder of each must pay income taxes on the dividends received each year
3. In which of the following situations may exemption from compliance with Regulation T be granted?
A) a broker/dealer conducts business only in registered securities
B) a broker/dealer who does not offer margin accounts
C) none of the above
D) a broker/dealer transacting less than 10% of its business through a member of a securities exchange
4. Registration of open-end investment company shares with the SEC implies that the:
A) prospectus contains the significant facts about the issue
B) SEC approves the issue
C) shares have investment merit
D) SEC guarantees the accuracy of the disclosures in the registration statement
5. What does the following mean when printed on the stock exchange ticker tape?
A) trading was suspended on MST pending dissemination of news
B) the last sale of MST was for 100 shares at 98.25
C) the preceding transaction in MST was tow or more points different than 98.25
D) one hundred shares of MST traded on the exchange and appear out of order on the tape
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: D |



