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FINRA General Securities Representative Qualification Examination (GS) Sample Questions (Q367-Q372):

NEW QUESTION # 367
Customers who engage in increased activity of wiring money from their account could indicate which of the following activities?

  • A. Money laundering
  • B. Crossing
  • C. Interpositioning
  • D. Churning

Answer: A Explanation:
Explanation/Reference:
Explanation: money laundering. Potential money laundering activities include excessive wiring of money between accounts.
NEW QUESTION # 368
Which of the following does not affect the public offering price of a new issue?

  • A. anticipated earnings of the issuer in the next year
  • B. the selling group's determination of value in the prevailing market conditions
  • C. dividend projections for the next year
  • D. the book value of the issuer

Answer: B Explanation:
Explanation/Reference:
Explanation: the selling group's determination of value in the prevailing market conditions. The offering price is determined by factors related to the issuer.
NEW QUESTION # 369
Which of the following does not decrease basis?

  • A. income from extraordinary sources
  • B. losses
  • C. depletion of real property
  • D. cash or property paid out

Answer: A Explanation:
income from extraordinary sources. Single events, such as the sale of property, do not affect basis.
NEW QUESTION # 370
If the Federal Reserve wished to ease credit, which of the following steps would it take?

  • A. purchase securities in the open market
  • B. raise the discount rate
  • C. both B and C
  • D. lower reserve requirements

Answer: C Explanation:
Explanation/Reference:
Explanation: both B and C.
Buying in the open market injects funds into the economy. Lowering reserve requirements provides banks with more funds for lending.
NEW QUESTION # 371
The market theory stating that the small investor is usually wrong is called the:

  • A. odd-lot theory
  • B. short interest theory
  • C. advance-decline theory
  • D. Dow theory

Answer: A Explanation:
The market theory stating that the small investor is usually wrong is called the odd-lot theory. The concept behind this theory is that when small lot sales are high, it is a good time to buy, as a high ratio of small business sales is a contrary indicator of market direction.
NEW QUESTION # 372
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