ICMA FMFQ Exam Questions Instant Access - No Installation Required

Question 1

Which of the following factors is true of forward contracts but not of futures contracts?

AThey are a means of fixing forward rates

BThey are flexible in terms of maturity rate

CThe deals are bilateral OTC contracts

DThey can be either bought or sold by market participants

Answer : C

Question 2

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

AA-

BBBB-

CBB

DC+

Answer : B

Question 3

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 4

What does the P/E ratio measure?

APrice/Earnings

BProfit/Earnings

CPrice/Estimated yield

DProfit/Estimated yield

Answer : A

Question 5

Where is the largest centre for FX trading?

ALondon

BNew York

CSingapore

DHong Kong

Answer : A

Question 6

A customer wants to sell SEK and asks 4 banks for a rate. Which of the following would be the best rate for the customer?

A6.5389

B6.5392

C6.5384

D6.6371

Answer : C

Question 7

Which of the following is not one of the so-called 3 Pillars of the European Basel regulations?

ALiquidity and capital requirements

BRisk management procedures

CSupervisory reviews

DRisk analysis and market discipline

Answer : B

ICMA Financial Markets Foundation Qualification FMFQ Exam Questions