Series 7 Mutual Funds and Annuities Practice Questions
F3 3.1–3.3 · Provides information, makes recommendations, transfers assets and keeps records · 91 of 125 scored questions across 6 topics
Ten Series 7 questions on investment companies, annuities and dpps, untimed, with a worked answer after each one.
Or take the full Series 7 mock examA client wants permanent life insurance whose cash value can be invested in subaccounts and whose premium payments he can raise, lower or skip as his income varies. Which policy BEST fits?
Investment companies, annuities and DPPs on the Series 7
Packaged products are a big share of Function 3: open- and closed-end funds, share classes and breakpoints, sales-charge math, variable annuities and their tax treatment, direct participation programs and REITs.
- Outline
- F3 3.1–3.3: Mutual funds and share classes, ETFs, UITs, variable annuities, variable life, DPPs, REITs and hedge funds
- Share of the exam
- F3 Provides information, makes recommendations, transfers assets and keeps records: 91 of 125 scored questions (73%)
- Our drill
- 10 questions from 50 on this topic, untimed, a worked answer after each; one free attempt, unlimited with a pass
What to know
- Public offering price = NAV + sales charge. Sales charge percent = (POP − NAV) ÷ POP.
- Breakpoints lower Class A sales charges; a letter of intent covers up to 13 months and rights of accumulation count existing holdings. Selling just below a breakpoint is breakpoint selling, a violation.
- Class A shares charge a front-end load, Class B a contingent deferred sales charge, Class C a level 12b-1 fee; 12b-1 fees above 0.25% bar a fund from calling itself no-load.
- Variable annuity payouts rise when separate-account returns beat the assumed interest rate (AIR) and fall when they lag it.
- Earnings in a nonqualified annuity grow tax-deferred; withdrawals come out earnings first and are taxed as ordinary income, with a 10% penalty before 59½ unless an exception applies.
- DPPs flow income and losses through to the investors; passive losses offset only passive income. REITs must distribute at least 90% of taxable income to avoid entity-level tax.
Test yourself on investment companies, annuities and dpps
Ten Series 7 questions on investment companies, annuities and dpps, untimed, with a worked answer after each one.
Or take the full Series 7 mock examCommon questions
How many investment companies, annuities and dpps questions are on the Series 7?
Packaged-product questions are part of Function 3 (91 of the 125 scored questions).
Are these real Series 7 questions?
No. FINRA and NASAA do not release exam questions. These are original practice questions written to the official content outline, with a worked explanation and the rule behind every answer.
More Series 7 topics
Outline and exam facts checked November 2026: FINRA: Series 7 exam · FINRA Series 7 Content Outline · FINRA Regulatory Notice 26-18.
Original independent practice questions written to the published FINRA content outline. Not affiliated with or endorsed by FINRA or NASAA.