Free product-fit drill
Series 7 Products and Suitability Practice Questions
Use these free sample questions to rehearse how customer facts change product recommendations across bonds, funds, annuities, options, margin, and retirement accounts. 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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A retired customer needs current income, low volatility, and ready access to funds. Which recommendation is least consistent with the profile?
Topic summary
What this drill teaches
Product questions become suitability questions when the stem gives customer age, objective, risk tolerance, liquidity need, time horizon, tax status, experience, or existing holdings. Read the customer first, then choose 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
- Choosing a product because it is familiar instead of because it fits the customer.
- Ignoring liquidity needs when a product has surrender charges or limited marketability.
- Treating high yield as a substitute for credit-quality analysis.
- Missing tax status when comparing municipal, retirement, and taxable products.
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
Product questions become suitability questions when the stem gives customer age, objective, risk tolerance, liquidity need, time horizon, tax status, experience, or existing holdings. Read the customer first, then choose the product.Why candidates miss it
Choosing a product because it is familiar instead of because it fits the customer.Exam trap
Ignoring liquidity needs when a product has surrender charges or limited marketability.Memory trick
Before answering, say the tested rule in one sentence, then point to the exact clue in the stem. For products and suitability, 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 suitabilityRebuild the customer-first recommendation framework.
Drill Series 7 suitability scenariosPractice customer profile facts and recommendation traps.
Suitability glossaryReview the definition before mixed product-fit questions.
Variable annuity glossaryReview long-term tax-deferral and liquidity traps.
Series 7 study guide 2026Review the chapter outline before you drill more questions.
Preview suitability objectivesPreview the related chapter for customer financial objectives.
See PassSeries7 pricingUnlock the full textbook, flashcards, mapped practice, and exam simulation.
Free products and suitability sample questions
0 of 10 answered
Question 1 / 10
Products and suitabilityA retired customer needs current income, low volatility, and ready access to funds. Which recommendation is least consistent with the profile?
Show answer and explanation
Correct answer: Illiquid speculative DPP
Explanation: The customer's need for income, low volatility, and liquidity conflicts with an illiquid speculative direct participation program.
Related: Customer profile fit
Question 2 / 10
Products and suitabilityA high-income customer in a high tax bracket seeks federally tax-exempt income and accepts moderate credit risk. Which product may be evaluated?
Show answer and explanation
Correct answer: Municipal bond
Explanation: Municipal bonds may fit a high-tax-bracket customer seeking tax-exempt income, but credit quality, maturity, call features, and liquidity still matter.
Related: Municipal suitability
Question 3 / 10
Products and suitabilityA customer needs access to most of the invested funds within one year. Which concern is most important before recommending a variable annuity?
Show answer and explanation
Correct answer: Surrender charges and liquidity
Explanation: Variable annuities are generally long-term products. Short-term liquidity needs are a major suitability concern because of surrender charges, expenses, and market risk.
Related: Variable annuity definition
Question 4 / 10
Products and suitabilityA customer owns stock, is neutral to moderately bullish, and wants additional income. Which strategy may be evaluated if the customer can sell the stock at the strike?
Show answer and explanation
Correct answer: Covered call
Explanation: A covered call can generate premium income for a stockholder willing to cap upside and potentially sell the shares if assigned.
Related: Covered call definition
Question 5 / 10
Products and suitabilityA customer owns appreciated stock and wants downside protection without selling it now. Which strategy directly addresses that objective?
Show answer and explanation
Correct answer: Buy a protective put
Explanation: A protective put can hedge downside risk while preserving stock ownership. The customer pays premium for that protection.
Related: Protective put definition
Question 6 / 10
Products and suitabilityA customer plans to make a large long-term mutual fund investment. Which cost factor should be reviewed before choosing a Class A share?
Show answer and explanation
Correct answer: Breakpoint eligibility
Explanation: Large long-term fund purchases may qualify for Class A breakpoint discounts. The representative should review sales-charge reductions and customer holding period.
Related: Mutual fund breakpoint
Question 7 / 10
Products and suitabilityA conservative customer with limited investment experience asks to use margin to buy volatile stocks. What is the primary suitability issue?
Show answer and explanation
Correct answer: Leverage can magnify losses and create margin calls
Explanation: Margin borrowing increases risk and can force deposits or liquidation if equity falls. Limited experience and conservative risk tolerance are important warning facts.
Related: Margin call definition
Question 8 / 10
Products and suitabilityA customer needs regular current income. Which feature makes a zero-coupon bond potentially unsuitable?
Show answer and explanation
Correct answer: No periodic coupon payments
Explanation: Zero-coupon bonds are purchased at a discount and accrete toward par. They generally do not provide regular cash coupon income.
Related: Debt securities practice
Question 9 / 10
Products and suitabilityA customer wants diversified equity exposure but also wants the ability to trade intraday. Which product feature may be relevant?
Show answer and explanation
Correct answer: ETF exchange trading
Explanation: ETFs trade intraday on exchanges and can provide diversified exposure. Costs, liquidity, objective, and risk still need suitability review.
Related: Investment companies practice
Question 10 / 10
Products and suitabilityA younger investor with a long time horizon asks about retirement savings and tax-free qualified withdrawals. Which account type may be evaluated?
Show answer and explanation
Correct answer: Roth IRA
Explanation: A Roth IRA may fit long-term retirement savings when the customer is eligible and values tax-free qualified withdrawals. Contribution limits and suitability still apply.
Related: Retirement practice
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 suitability
Rebuild the customer-first recommendation framework.
- Drill Series 7 suitability scenarios
Practice customer profile facts and recommendation traps.
- Suitability glossary
Review the definition before mixed product-fit questions.
- Variable annuity glossary
Review long-term tax-deferral and liquidity traps.
- Series 7 study guide 2026
Review the chapter outline before you drill more questions.
- Preview suitability objectives
Preview the related chapter for customer financial objectives.
- 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.