Online Access Free FMFQ Exam Questions

Futures contracts are described as fungible (i.e. each contract is the same as all others). Why is this true?

• A.Because the contract periods run consecutively
• B.Because the clearing house is allowed to run long and short positions
• C.Because the clearing house acts as a counterparty to all trades
• D.Because the contract terms are negotiable

Which of the following investments would be an example of a pooled investment?

• A.Deposit made with a bank
• B.Purchase of an equity warrant
• C.Purchase of a mutual fund
• D.Purchase of shares

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

• A.C+
• B.BBB-
• C.BB
• D.A-

Which of the following is not a factor in determining a fair value forward fx price?

• A.Interest in the base currency
• B.Interest rate in the quoted currency
• C.View on where rates will be at the forward date
• D.Spot rate

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

• A.Disintermediation
• B.Private banking
• C.Credit banking
• D.Leveraged finance