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Official Practice ProblemFINRA Series 7 Blueprint: Function 3
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Question #s7-prep2-s7-q-109Function 3Fundamental

Finra

A Currency Transaction Report (CTR) must be filed for cash transactions exceeding:

Correct Choice: C

CTR = $10,000+ cash. SAR = $5,000+ suspicious activity. File CTR within 15 days.

Complete Analysis & Legal Rationale

A CTR must be filed with FinCEN for any cash transaction exceeding $10,000, whether its a deposit, withdrawal, or exchange. Multiple cash transactions by the same person on the same day must be aggregated.

Distractor Autopsy (Why Other Options Are Traps)

FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:

Choice AIncorrect
Concept Trap

Does not match the governing concept in the explanation.

Choice BIncorrect
Concept Trap

Does not match the governing concept in the explanation.

Choice CCorrect
None

Matches the verified teaching point in the explanation.

Choice DIncorrect
Concept Trap

Does not match the governing concept in the explanation.

Authorities & References:

Official Standard: Requires AML programs consistent with Bank Secrecy Act obligations (verify current text).

Official SourceFINRA FINRA Rule 3310 — Anti-Money Laundering Compliance Program

Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.

Official SourceFINRA FINRA Series 7 Content Outline — General Securities Representative Examination (Series 7) Content Outline
🏛️

Regulatory Authority & Citations: Primary Legal Sources

Verified citations governing Question #s7-prep2-s7-q-109 (FINRA Series 7 Content Outline)

To pass the FINRA Series 7, candidates must understand not just the calculation formulas, but the exact federal securities acts, SRO rulebooks, and statutory frameworks that enforce them. Review the primary authority records below:

FINRAFINRA Rule 3310— Anti-Money Laundering Compliance Program

Requires AML programs consistent with Bank Secrecy Act obligations (verify current text).

Read FINRA Official Rule
FINRAFINRA Series 7 Content Outline— General Securities Representative Examination (Series 7) Content Outline

Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.

Read FINRA Official Rule

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