ICMA FMFC - Financial Markets Foundation Course Exam
Page: 2 / 10
Total 50 questions
Question #6 (Topic: )
Which of the following statements is true of dividend payments in the equity market?
A. All equities pay dividends
B. Dividend rates are pre-determined at the launch of the equity
C. Management determines the level of dividend payment in each period
D. If a company does not pay a dividend one year then this skipped dividend becomes a liability on the company's balance sheet
Answer: C
Question #7 (Topic: )
Which of the following would be considered a consumption asset?
A. Land
B. Buildings
C. Heavy equipment
D. Food and drink
Answer: D
Question #8 (Topic: )
Which of the equity exchanges operates a quote-driven model?
A. NYSE
B. NASDAQ
C. LSE
D. Euronext
Answer: B
Question #9 (Topic: )
The process by which a central clearing corporation manages its credit risk is known as:?
A. Margining
B. Matching
C. Migrating
D. Maturing
Answer: A
Question #10 (Topic: )
Which money market instrument is supported in the secondary market by primary dealers?
A. Deposits
B. Commercial paper
C. T-bill
D. Corporate bond
Answer: C
