ICMA Financial Markets Foundation Course - FMFC Exam Questions [2026]

QUESTION NO: 1
Which of the following would not be expected to execute market deals?

A. Trader B. Salesperson C. Fund manager D. Operations manager

Correct Answer: D

QUESTION NO: 2
Which of the following factors in option pricing is the most subjective?

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

Correct Answer: C

QUESTION NO: 3
What is the credit spread on a corporate bond?

A. The difference in price between a corporate bond and a benchmark treasury B. The increased size of the bid/ask spread in a trade price C. The additional yield required by investors to offset the credit risk of the security D. The difference between the coupon rate of a corporate bond and the dividend of the issuing company

Correct Answer: C

QUESTION NO: 4
Which money market instrument is supported in the secondary market by primary dealers?

A. Deposits B. T-bill C. Corporate bond D. Commercial paper

Correct Answer: B

QUESTION NO: 5
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. 6.5389 C. 6.6371 D. 6.5392

Correct Answer: A