ICMA FMFQ Exam Practice Test Instant Access

Question 1

Which of the following statements is true of dividend payments in the equity market?

AAll equities pay dividends

BDividend rates are pre-determined at the launch of the equity

CManagement determines the level of dividend payment in each period

DIf a company does not pay a dividend one year then this skipped dividend becomes a liability on the company's balance sheet

Answer : C

Question 2

Where is the largest centre for FX trading?

ALondon

BNew York

CSingapore

DHong Kong

Answer : A

Question 3

The price of a 3x6 FRA will be determined by reference to which of the following interest rates?

A3 month rate and 9 month rate

B3 month rate and 6 month rate

C6 month rate and 9 month rate

D6 month rate and 18 month rate

Answer : B

Question 4

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 5

Which of the following methods of raising funds will not be used by governments?

ADirect borrowing from banks

BIssuing bonds

CIssuing short-term debt

DIssuing equity

Answer : D

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ICMA Financial Markets Foundation Qualification Exam Practice Test

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ICMA Financial Markets Foundation Qualification Exam Practice Test

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