Online Access Free FMFC Practice Test

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

• A.You have purchased an interest rate risk free security for which you have paid less than face value and will receive at maturity face value
• B.You 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
• C.You have purchased a credit risk free security for which you have paid face value and will receive at maturity face value plus accrued interest
• D.You have purchased a credit risk free security for which you have paid less than face value and will receive at maturity face value

Which of the following factors in option pricing is the most subjective?

• A.Intrinsic value
• B.Time to maturity
• C.Volatility
• D.Interest rates

A customer wants to sell SEK and asks 4 banks for a rate. Which of the following would be the best rate for the customer?

• A.6.5384
• B.6.6371
• C.6.5392
• D.6.5389

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 is likely to increase the expected growth rate
• D.It will have no impact

Which market regulation introduced the requirement for guaranteeing Best Execution in the
Equities market?

• A.EMIR
• B.Basel II
• C.MiFID
• D.Dodd-Franks