ICMA FMFQ Exam Practice Test Instant Access

Question 1

Approximately what is the daily turnover in the global fx markets (in USD equivalent)?

AUSD 5 billion per day

BUSD 500 billion per day

CUSD 5 trillion per day

DUSD 50 trillion per day

Answer : C

Question 2

A company issues a share that has a par value of 100.00 and pays a fixed dividend of 2.0% annually? What type of share is this?

AOrdinary share

BCumulative share

CDeferred share

DPreference share

Answer : D

Question 3

You have asked a bank to give you a rate at which you can sell SEK (Sweish Krone) and buy NOK (Norwegian Krone) for delivery in two days. What is the name of this sort of FX rate?

AQuote rate

BCross rate

CForward rate

DDual rate

Answer : B

Question 4

What does the P/E ratio measure?

APrice/Earnings

BProfit/Earnings

CPrice/Estimated yield

DProfit/Estimated yield

Answer : A

Question 5

The process by which a central clearing corporation manages its credit risk is known as:?

AMargining

BMatching

CMigrating

DMaturing

Answer : A

Question 6

You purchase a USD Treasury Bill. Which of the following sentences best describes the trade you have done?

AYou have purchased a credit risk free security for which you have paid face value and will receive at maturity face value plus accrued interest

BYou have purchased a credit risk free security for which you have paid less than face value and will receive at maturity face value

CYou have purchased an interest rate risk free security for which you have paid face value and will receive at maturity face value plus accrued interest

DYou have purchased an interest rate risk free security for which you have paid less than face value and will receive at maturity face value

Answer : B

Question 7

Facilitating a movement of funds directly from lenders to borrowers is a definition of which the following?

ACredit banking

BDisintermediation

CLeveraged finance

DPrivate banking

Answer : B

ICMA FMFQ Financial Markets Foundation Qualification Exam Practice Test