Free account drill
Series 7 Customer Accounts Practice Questions
Use these free sample questions to rehearse account registration, customer profile facts, discretionary authority, trading authorization, margin and options approval, fiduciary accounts, and transfers. These are educational examples, not actual FINRA exam questions.
See the rule before the answer.
Free drills show the stem, choices, correct answer, and explanation without an account.
10 sample questions
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Mapped explanations
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Before a representative may exercise discretion in a customer's account, what is generally required?
Topic summary
What this drill teaches
Customer account questions decide who can act, what must be approved, and which facts must be collected before a recommendation. Read the account type before reading the product.
Use this sample set to rehearse the rule. Full access adds the complete mapped bank, saved progress, and exam-style mixed practice.
Common traps
Miss these once here, not on exam day
- Assuming verbal permission is enough for discretionary trading.
- Treating account registration and trading authority as the same thing.
- Forgetting that margin, options, and discretionary activity need special approval.
- Skipping customer profile facts before evaluating suitability.
How to use the page
Answer, review, then fix the miss.
Answer the sample, review the explanation, then move into the related chapter or diagnostic before the same mistake appears in a mixed set.
Exam depth
How to study this page
What the exam is testing
Customer account questions decide who can act, what must be approved, and which facts must be collected before a recommendation. Read the account type before reading the product.Why candidates miss it
Assuming verbal permission is enough for discretionary trading.Exam trap
Treating account registration and trading authority as the same thing.Memory trick
Before answering, say the tested rule in one sentence, then point to the exact clue in the stem. For customer accounts, the clue usually appears before the answer choices start to look tempting.Work all 10 questions once for accuracy, then repeat only the missed explanations and related concept links. The goal is not memorizing these questions; it is recognizing the rule trigger in a new prompt.
Related concepts
Related concept map
Use this map when a question exposes a weak rule. Move from the missed explanation into the related concept, then return to the drill.
Get an instant score, missed topics, and an optional missed-topic study plan.
Review Series 7 customer accountsRebuild account registration, authority, approval, and profile rules.
Review Series 7 suitability scenariosConnect account facts to customer-profile and recommendation logic.
Drill Series 7 retirement account questionsPractice beneficiary, rollover, distribution, and tax-deferral account clues.
Drill Series 7 margin questionsReview account approval and leverage risk after registration rules.
Series 7 study guide 2026Review the chapter outline before you drill more questions.
Preview the customer accounts chapterPreview the related chapter for account-opening and authority rules.
See PassSeries7 pricingUnlock the full textbook, flashcards, mapped practice, and exam simulation.
Free customer accounts sample questions
0 of 10 answered
Question 1 / 10
Customer accountsBefore a representative may exercise discretion in a customer's account, what is generally required?
Show answer and explanation
Correct answer: Written customer authorization and firm approval
Explanation: Discretionary authority generally requires written customer authorization and firm acceptance or approval before discretionary trading occurs.
Related: Discretionary accounts
Question 2 / 10
Customer accountsFor a basic cash brokerage account, which signature is generally required on the new account form?
Show answer and explanation
Correct answer: Registered representative and principal
Explanation: A standard new account form is signed by the representative and approved by a principal. Customer signatures are required for certain agreements, such as margin or options documents, not every cash account form.
Related: New account approval
Question 3 / 10
Customer accountsWhich documents are central to opening a margin account?
Show answer and explanation
Correct answer: Credit agreement and hypothecation agreement
Explanation: Margin accounts require documents covering the loan terms and pledge of securities as collateral. Loan consent is separate and generally optional.
Related: Margin account approval
Question 4 / 10
Customer accountsBefore a customer trades options, what is generally required?
Show answer and explanation
Correct answer: Options account approval and delivery of the ODD
Explanation: Options trading requires account approval under the firm's options procedures and delivery of the Options Disclosure Document at or before approval.
Related: Options approval context
Question 5 / 10
Customer accountsA trustee wants to trade on margin, but the trust document is silent on margin. What is the key issue?
Show answer and explanation
Correct answer: Whether the trust document grants authority
Explanation: A trustee's authority comes from the trust document and fiduciary duties. Silence about margin or speculation can make the activity impermissible or unsuitable.
Related: Trust accounts
Question 6 / 10
Customer accountsA corporation opens an account. What document usually identifies who may trade for the corporation?
Show answer and explanation
Correct answer: Corporate resolution
Explanation: A corporate resolution identifies authorized persons and may need to specify authority for activities such as margin or options trading.
Related: Corporate accounts
Question 7 / 10
Customer accountsWhat is the primary purpose of a transfer-on-death registration?
Show answer and explanation
Correct answer: Transfer assets to named beneficiaries after death
Explanation: TOD registration directs account assets to named beneficiaries after death. It does not grant trading authority or guarantee returns.
Related: Beneficiary concepts
Question 8 / 10
Customer accountsIn a joint tenants with right of survivorship account, what happens when one owner dies?
Show answer and explanation
Correct answer: The surviving owner generally receives the deceased owner's interest
Explanation: JTWROS includes survivorship. The deceased owner's interest generally passes to the surviving owner rather than through the deceased owner's estate.
Related: Joint registrations
Question 9 / 10
Customer accountsWhich fact is part of the customer profile used for suitability?
Show answer and explanation
Correct answer: Investment objective
Explanation: Investment objective, risk tolerance, time horizon, liquidity needs, tax status, income, net worth, and experience are core profile facts used for recommendations.
Related: Customer profile facts
Question 10 / 10
Customer accountsA third party wants to enter orders for a customer's account. What should the firm verify first?
Show answer and explanation
Correct answer: Valid trading authorization or power of attorney
Explanation: A person entering orders for someone else's account needs proper authorization. Account ownership alone does not automatically give every third party trading authority.
Related: Trading authority
Topic score
0/10
Answer every question for a topic score.
Use this topic drill as a warmup. For a mixed-topic routing signal, take the free diagnostic and request the missed-topic study plan after your score appears.
Next study steps
Related Series 7 resources
- Take the free Series 7 diagnostic
Get an instant score, missed topics, and an optional missed-topic study plan.
- Review Series 7 customer accounts
Rebuild account registration, authority, approval, and profile rules.
- Review Series 7 suitability scenarios
Connect account facts to customer-profile and recommendation logic.
- Drill Series 7 retirement account questions
Practice beneficiary, rollover, distribution, and tax-deferral account clues.
- Drill Series 7 margin questions
Review account approval and leverage risk after registration rules.
- Series 7 study guide 2026
Review the chapter outline before you drill more questions.
- Preview the customer accounts chapter
Preview the related chapter for account-opening and authority rules.
- See PassSeries7 pricing
Unlock the full textbook, flashcards, mapped practice, and exam simulation.
- Review the Series 7 study guide
Use the chapter outline to decide what to read before the next topic drill.
Mixed-topic check
See how this topic holds up in a mixed quiz
Topic drills are useful, but the real exam switches topics constantly. Take the free Series 7 diagnostic when you want an instant mixed score and an optional missed-topic study plan.