Answers and Explanations to Practice Exam Part I
Congratulations — if you’ve reached this point, you’ve completed Part I of the practice exam in Chapter 17. (If you haven’t, flip back and take the test. You don’t want to spoil all the surprises, do you?) You can either stop here and review your answers, or, if you’re really, really brave, you can go to Part II of the practice test in Chapter 19. If you’re going to Part II, take a 30- to 60-minute break before proceeding (like in the real exam).
Review, review, review. And if I haven’t mentioned this yet, reviewing is definitely a good idea. Look at the questions you had problems with, retake all the questions you got wrong, and make sure you get them right the second (or third) time around. If you’re short on time but just can’t wait to see how you fared, you can check out the abbreviated answer key (without the explanations) at the end of this chapter. I explain how the Series 7 is scored in the section “Making the Grade,” just before the answer key. But I strongly suggest you come back later and — you guessed it — review.
Wait at least a week or two before taking the same test again. Retaking the test won’t help your cause if you’re just memorizing the answers.
1. D. (Chapter 7) You have to remember to look at this question from a corporation’s point of view. As a practical matter, the issuer will most likely refund the issue that will cost it the most money over the life of the issue. The first thing that an issuer ...