ICMA FMFQ Exam Questions Instant Access - No Installation Required

Question 1

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

ABasel II

BMiFID

CEMIR

DDodd-Franks

Answer : B

Question 4

As a company moves through its industry lifecycle, toward maturity, how is this most likely to affect an equity analyst's perception of its growth rate for equity valuation?

AAnalysts do not consider a growth rate in equity valuation

BIt will have no impact

CIt is likely to increase the expected growth rate

DIt is likely to decrease the expected growth rate

Answer : D

Question 5

CHIPS is the payment system for which currency?

AGBP

BUSD

CEURO

DCHF

Answer : B

Question 6

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 7

You purchase a USD Treasury Bill. Which of the following sentences best describes the trade you have done?

AYou have purchased a credit risk free security for which you have paid face value and will receive at maturity face value plus accrued interest

BYou have purchased a credit risk free security for which you have paid less than face value and will receive at maturity face value

CYou have purchased an interest rate risk free security for which you have paid face value and will receive at maturity face value plus accrued interest

DYou have purchased an interest rate risk free security for which you have paid less than face value and will receive at maturity face value

Answer : B

ICMA Financial Markets Foundation Qualification FMFQ Exam Questions