Finra Series-7 Exam - Topic 3 Question 42 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 42
Topic #: 3

[All Series-7 Questions]

Bubba's margin account has securities valued at $20,000 and an $8,000 credit balance.

What is the equity in Bubba's account?

A$8,080

B$12,800

C$20,000

D$28,000

Show Suggested Answer

Suggested Answer: D

$28,000. The equity is the market value plus the credit balance.

by Kasandra at May 03, 2022, 04:16 AM

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Vivienne

4 months ago

Definitely $12,800, no doubt!

upvoted 0 times

...

Devora

4 months ago

Wait, are you sure about that calculation?

upvoted 0 times

...

Rosio

4 months ago

I thought it would be higher than that!

upvoted 0 times

...

Brynn

4 months ago

So it's $12,800, right?

upvoted 0 times

...

Ailene

5 months ago

Equity is calculated as total securities minus credit balance.

upvoted 0 times

...

Iesha

5 months ago

I feel like I might be mixing up the terms. Is the credit balance considered a liability? If so, then I guess the equity would be $12,000, but I'm not completely sure.

upvoted 0 times

...

Rima

5 months ago

I practiced a similar question where we had to find equity, and I think the answer was always the total value minus liabilities. I hope that applies here too!

upvoted 0 times

...

Xenia

5 months ago

I think the equity is the total value minus the credit balance, so it should be $20,000 - $8,000, which is $12,000, right?

upvoted 0 times

...

Oneida

5 months ago

I remember we calculated equity by subtracting the credit balance from the total value of securities, but I'm not sure if I got the numbers right.

upvoted 0 times

...

Cornell

5 months ago

I'm a bit confused by this question. Is it about ensuring all routers run iBGP inside the transit AS? I'll have to review my notes on iBGP before answering.

upvoted 0 times

...

Lorita

5 months ago

Whoa, this is a tricky one. I'm going to need to really focus and think through the best practices for JavaScript accounting systems to figure out which line needs to be changed.

upvoted 0 times

...

Lizbeth

5 months ago

I remember learning about this in class, but I'm drawing a blank right now. I'll have to eliminate the options that don't sound correct.

upvoted 0 times

...