ICMA SOFQ Online Practice Questions and Exam Preparation

ICMA SOFQ Online Questions & Answers

• Question 1:

  The number of days of accrued interest, and the cash value of accrued interest - on a trade of GBP 30,500,000 Barclays Bank GBP Floating Rate Notes November 2028, paying interest quarterly - the current coupon rate is 3.7162% for the period 21s' November to November 21s' February, trade date 3rd February, value date 5th February, is:

  A. 45 days and GBP 139,739.30
  B. 76 days and GBP 236,004.15
  C. 107 days and GBP 336,883.85
  D. 45 days and GBP 141,680.12
  B. 76 days and GBP 236,004.15

• Question 2:

  A S.W.I.FT. MT541 instructs a custodian to:

  A. Receive securities on a Free of Payment basis
  B. Receive securities on a Delivery versus Payment basis
  C. Deliver securities on a Delivery versus Payment basis
  D. Deliver securities on a Free of Payment basis
  B. Receive securities on a Delivery versus Payment basis

• Question 3:

  The physical substances of natural gas/ barley and zinc fall within the following financial heading:

  A. Cash
  B. Derivatives
  C. Commodities
  D. Securities
  C. Commodities

• Question 4:

  Where Firm A has borrowed a fixed cash amount on a secured basis from Firm B, an increase in the collateral value means that:

  A. Firm A has exposure and must return some collateral to Firm B
  B. FirmB has exposure and must request additional collateral from Firm A
  C. Firm B has exposure and must request the return of collateral from Firm A
  D. Firm A has exposure and must request the return of some collateral from Firm B
  D. Firm A has exposure and must request the return of some collateral from Firm B

• Question 5:

  The ISIN stands for:

  A. International Securities Identification Number; a 13-character alpha-numeric code
  B. International Secondary ID Notation; a 13-character alpha-numeric code
  C. International Securities Identification Number; a 12-character alpha-numeric code
  D. International Secondary ID Notation; a 12-character alpha-numeric code
  C. International Securities Identification Number; a 12-character alpha-numeric code

• Question 6:

  An example of an organisation classified as a sovereign wealth fund is:

  A. United Nations
  B. Xerox Corporation
  C. German Government
  D. China Investment Corporation
  D. China Investment Corporation

• Question 7:

  A bond which pays no interest during its lifetime sand repays capital on its maturity date is known as:

  A. A zero interest bond
  B. A nil interest bond
  C. A zero coupon bond
  D. A zero interest note
  C. A zero coupon bond

• Question 8:

  Thefollowing is an inaccurate statement:

  A. Warrants have a variable exercise price
  B. Warrants are exercisable by the warrant holder
  C. Warrants will expire if not exercised by the expiry date
  D. Warrants are detachable from the original security
  A. Warrants have a variable exercise price

• Question 9:

  The International Monetary Fund is an example of:

  A. A supranational organisation
  B. A sovereign wealth fund
  C. An investment bank
  D. A securities market regulator
  A. A supranational organisation

• Question 10:

  The 'settlement cycle' within a securities market refers to the number of days:

  A. Between a trade's trade date and the actual settlement date of a trade
  B. Between a security's issue date and the value date of a trade
  C. Between a trade's trade date and its value date
  D. Between the trade date of a trade and the issue date of a security
  C. Between a trade's trade date and its value date