ICMA FMFQ Exam Questions Instant Access - No Installation Required

Question 1

What type of bond is a "Yankee" bond?

AGovernment bond

BEurobond

CDomestic foreign bond

DGlobal bond

Answer : C

Question 2

You have bought a call option on a stock at a strike of EUR 29, and paid a premium of EUR 1.5 for this option. What is your breakeven price on this position?

AEUR 27.50

BEUR 29.00

CEUR 30.50

DEUR 32.00

Answer : C

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

How are equity prices expressed?

AAs percentage of the nominal values of the share

BAs yields

CAs monetary units per share

DAs percentage of the value of the company

Answer : C

Question 6

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 7

CHIPS is the payment system for which currency?

AGBP

BUSD

CEURO

DCHF

Answer : B

ICMA Financial Markets Foundation Qualification FMFQ Exam Questions