Free ICMA FMFQ Exam Dumps Questions & Answers

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

• A.6 month rate and 18 month rate
• B.3 month rate and 6 month rate
• C.6 month rate and 9 month rate
• D.3 month rate and 9 month rate

When a rating agency is assessing a corporate bond rating/ which of the following will they take into consideration in giving their rating?

• A.They take into consideration both probability of default and specific severity of potential loss
• B.They look at the severity of potential loss without considering the probability of default
• C.They consider probability of default but must always assume 100% loss
• D.They assume all bonds will repay and so ignore the probability of default

Which of the following would be considered a consumption asset?

• A.Heavy equipment
• B.Food and drink
• C.Buildings
• D.Land

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?

• A.Analysts do not consider a growth rate in equity valuation
• B.It is likely to decrease the expected growth rate
• C.It will have no impact
• D.It is likely to increase the expected growth rate

Which of the following factors is true of forward contracts but not of futures contracts?

• A.They are a means of fixing forward rates
• B.The deals are bilateral OTC contracts
• C.They can be either bought or sold by market participants
• D.They are flexible in terms of maturity rate