Series 50 Exam Sample Questions
The following questions are similar in format and content to questions on the Series 50 examination. The sample questions, however, are not intended to parallel either the level of difficulty or the subject coverage of the examination. The sample questions are only intended to assist candidates in preparing for the types of multiple-choice questions that will appear on the examination.
1. Which two of the following are required in a municipal advisor’s fiduciary duty to a municipal client in the conduct of business?
I. Dealing honestly and in good faith with the municipal client
II. Resigning if client refuses to accept advice given
III. Disclosing in writing conflicts of interest
IV. Exploring one solution as the course of action
(A) I and IV
(B) I and III
(C) II and III
(D) II and IV
2. The process of a non-profit organization issuing debt by a governmental unit is called a:
(A) Negotiated underwriting.
(B) Competitive underwriting.
(C) Conduit financing.
(D) Private placement.
3. When analyzing a municipality’s general obligation debt, which of the following would be
considered a positive trend?
(A) A constant level of debt while property values are increasing
(B) Increased short-term borrowing to meet debt service requirements
(C) Use of long-term debt to fund operating expenditures
(D) Increasing unfunded pension liabilities
4. A feasibility study used with the sale of revenue bonds would do all the following except:
(A) Determine economic viability.
(B) Forecast demand or use of a given facility.
(C) Provide formal bond counsel opinion.
(D) Provide an independent financial review of the project.
5. What is usually the intent of a municipality when it issues refunding bonds?
(A) Create level debt service
(B) Lower overall interest costs
(C) Create a double-barreled bond
(D) Improve their ratings with the rating agencies