ICMA FMFQ Exam Questions Instant Access - No Installation Required

Question 1

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 2

The study of patterns of historic price movements to determine expected future patterns is known as:?

ATechnical analysis

BFundamental analysis

CValue analysis

DMomentum analysis

Answer : A

Question 3

A spot FX trade would traditionally follow which of the following settlement conventions?

ASame day

BT + 1 day

CT + 2 days

DT + 3 days

Answer : C

Question 4

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

ABasel II

BMiFID

CEMIR

DDodd-Franks

Answer : B

Question 5

The borrowings of which of the following are most likely to be driven by regulatory capital requirements?

ABanks

BCorporates

CGovernments

DSupra nationals

Answer : A

Question 6

Which of the following investments would be an example of a pooled investment?

ADeposit made with a bank

BPurchase of shares

CPurchase of a mutual fund

DPurchase of an equity warrant

Answer : C

Question 7

What is the credit spread on a corporate bond?

AThe increased size of the bid/ask spread in a trade price

BThe difference in price between a corporate bond and a benchmark treasury

CThe additional yield required by investors to offset the credit risk of the security

DThe difference between the coupon rate of a corporate bond and the dividend of the issuing company

Answer : C

ICMA Financial Markets Foundation Qualification FMFQ Exam Questions