ICMA FMFQ Exam Practice Test Instant Access

Question 1

Approximately what is the daily turnover in the global fx markets (in USD equivalent)?

AUSD 5 billion per day

BUSD 500 billion per day

CUSD 5 trillion per day

DUSD 50 trillion per day

Answer : C

Question 2

When a rating agency is assessing a corporate bond rating/ which of the following will they take into consideration in giving their rating?

AThey assume all bonds will repay and so ignore the probability of default

BThey look at the severity of potential loss without considering the probability of default

CThey consider probability of default but must always assume 100% loss

DThey take into consideration both probability of default and specific severity of potential loss

Answer : D

Question 3

Which of the equity exchanges operates a quote-driven model?

ANYSE

BNASDAQ

CLSE

DEuronext

Answer : B

Question 4

An EUR-denominated Eurobond matures on 15 January 2017 and pays an annual coupon of 5% on an act/act basis. The bond is trading at a yield to maturity of 6% for settlement on 10 March 2015. Which of the following ststements is true of its clean price?

AIts price will be above 100

BIts price will be below 100

CIts price will be 100

DNeed more information

Answer : B

Question 5

Which market regulation introduced the requirement for guaranteeing Best Execution in the Equities market?

ABasel II

BMiFID

CEMIR

DDodd-Franks

Answer : B

Question 6

Facilitating a movement of funds directly from lenders to borrowers is a definition of which the following?

ACredit banking

BDisintermediation

CLeveraged finance

DPrivate banking

Answer : B

Question 7

Which of the following rates represents the lowest investment-grade rating?

AA-

BBBB-

CBB

DC+

Answer : B

ICMA Financial Markets Foundation Qualification FMFQ Exam Practice Test