ICMA SOFQ Exam Questions Instant Access - No Installation Required

Question 1

The following are examples of money market instruments:

AZero coupon bonds and Floating-rate notes

BConvertible bonds and Mortgage-Backed Securities

CFixed-rate bonds and Step-up bonds

DCommercial Paper and Certificate of Deposit

Answer : D

Question 2

Within internal books and records, the recording of the trading book on a securities trade facilitates:

AReconciliation of settled positions, per trading book and per security - between the trading department and operations

BReconciliation of settled positions, per trading book and per security - between operations and the firm's custodian

CReconciliation of trading positions, per trading book and per security - between the firm's counterparty and the firm's custodian

DReconciliation of trading positions, per trading book and per security - between the trading department and operations

Answer : D

Question 3

Where the term 'Ordinary Shares' is used in the UK, the equivalent term in the US is:

ACommon stock

BCorporate Shares

CNormal Shares

DOrdinary Stock

Answer : A

Question 4

Bond types that are traded at a deeply discounted price are:

AFloating rate notes

BZero coupon bonds

CConvertible bonds and Exchangeable bonds

DFixed rate bonds

Answer : B

Question 5

From the perspective of one party to a securities trade, Free of Payment settlement without risk means:

ADelivering an asset to the counterparty prior to receipt of the contra asset from the counterparty

BSimultaneously exchanging securities and cash with the counterparty

CDelivering an asset to the counterparty following successful exchange of trade confirmations

DReceiving the counterparty's asset before instructing release of the contra asset

Answer : D

Question 6

'Sub-custodian' is a term that is applicable to:

AInternational central securities depositories

BGlobal custodians

CLocal custodians

DNational central securities depositories

Answer : B

Question 7

A 'put' option on a bond allows:

AThe stock exchange to force the bondholder to redeem the bonds prior to the bond's scheduled maturity date

BThe regulator to force the issuer to redeem the bonds prior to the bond's scheduled maturity date

CThe bondholder to redeem their bonds prior to the bond's scheduled maturity date

DThe bond issuer to force redemption of bonds prior to the bond's scheduled maturity date

Answer : C

ICMA Securities Operations Foundation Qualification (SOFQ) SOFQ Exam Questions