ICMA FMFQ Exam Practice Test Instant Access

Question 1

One of the most contentious parts of the US Dodd-Franks Act is the restrictions placed on banks carrying trading positions. What is the name of the rule that deals with this?

ABernanke Rule

BGreenspan Rule

CYellan Rule

DVolckerRule

Answer : D

Question 2

Which money market instrument is supported in the secondary market by primary dealers?

ADeposits

BCommercial paper

CT-bill

DCorporate bond

Answer : C

Question 3

You have asked a bank to give you a rate at which you can sell SEK (Sweish Krone) and buy NOK (Norwegian Krone) for delivery in two days. What is the name of this sort of FX rate?

AQuote rate

BCross rate

CForward rate

DDual rate

Answer : B

Question 4

What does the P/E ratio measure?

APrice/Earnings

BProfit/Earnings

CPrice/Estimated yield

DProfit/Estimated yield

Answer : A

Question 5

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 6

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

AA-

BBBB-

CBB

DC+

Answer : B

Question 7

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

ANYSE

BNASDAQ

CLSE

DEuronext

Answer : B

ICMA FMFQ Financial Markets Foundation Qualification Exam Practice Test