10 free, exam-style Series 50 Municipal Advisor Representative (Series 50) practice questions with answers and explanations. No signup required. Work through them below, then take the full free Series 50 practice test to study every exam domain.
These 10 free Series 50 questions are organized by exam domain, so you can see how each part of the Series 50 Municipal Advisor Representative blueprint is tested. Reveal the answer and explanation under each question.
A municipal advisor is engaged by a hospital that is borrowing through a state health facilities authority acting as a conduit issuer. The hospital is the obligated person. Under MSRB Rule G-42, what standard of conduct does the municipal advisor owe to the hospital?
Correct answer: C - A duty of care, but not a duty of loyalty
A municipal advisor professional contributes $250 to the campaign of a city mayor. The professional lives in and is entitled to vote in that city. Under MSRB Rule G-37, what is the effect of this contribution on the firm's ability to engage in municipal advisory business with the city?
Correct answer: D - It does not trigger a ban because it falls within the de minimis exception
An issuer sells bonds that are payable from the net revenues of a water system and are also backed by the issuer's full faith and credit and unlimited taxing power as additional security. This bond is BEST described as a:
Correct answer: A - Double-barreled bond
An issuer is comparing two competitive bids on a new bond issue. One bidder argues the award should be made on a True Interest Cost (TIC) basis rather than a Net Interest Cost (NIC) basis. The primary reason an issuer would prefer TIC is that TIC:
Correct answer: A - Considers the time value of money by discounting future debt service
An issuer needs to invest the proceeds of an advance refunding in a defeasance escrow and wants a non-marketable U.S. Treasury security purchased directly from the Treasury, with rates set to match the escrow's cash-flow needs. Which investment is specifically designed for this purpose?
Correct answer: C - State and Local Government Series (SLGS) securities
A revenue bond issue generates $3,000,000 in net revenues available for debt service in a year when annual debt service is $2,000,000. The bond's debt service coverage ratio is:
Correct answer: B - 1.50 times
A town wants to designate its upcoming tax-exempt note issue as 'bank-qualified' so local banks can deduct a portion of their carrying costs. For the obligations to be bank-qualified, the issuer must reasonably anticipate issuing no more than what amount of tax-exempt obligations during the calendar year?
Correct answer: B - $10 million
An issuer is bringing a complex, lower-rated revenue bond to market during a period of high interest-rate volatility and wants flexibility to adjust the structure and pricing up to the day of sale. Which method of sale is generally MOST appropriate?
Correct answer: D - A negotiated sale with a pre-selected underwriter
A city with general taxing powers issues $4 million of tax-exempt governmental bonds and expects no other tax-exempt issuance that year. Regarding the federal arbitrage rules, this issue most likely qualifies for the:
Correct answer: A - Small-issuer exception to the arbitrage rebate requirement
Under SEC Rule 15c2-12, an issuer's continuing disclosure agreement requires notice of certain listed events to be filed to the MSRB's EMMA system. Which statement correctly describes this obligation?
Correct answer: C - Event notices must be filed in a timely manner, not to exceed 10 business days after the event
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