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Financial Markets Foundation Qualification Questions 16–20 (page: 5)

Updated On: 10-Feb-2026

You have asked a bank to give you a rate at which you can sell SEK (Sweish Krone) and buy NOK (Norwegian Krone) for delivery in two days.
What is the name of this sort of FX rate?

  1. Quote rate
  2. Cross rate
  3. Forward rate
  4. Dual rate

Answer(s): B



A company issues a share that has a par value of £100.00 and pays a fixed dividend of 2.0% annually? What type of share is this?

  1. Ordinary share
  2. Cumulative share
  3. Deferred share
  4. Preference share

Answer(s): D



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

  1. They assume all bonds will repay and so ignore the probability of default
  2. They look at the severity of potential loss without considering the probability of default
  3. They consider probability of default but must always assume 100% loss
  4. They take into consideration both probability of default and specific severity of potential loss

Answer(s): D



A spot FX trade would traditionally follow which of the following settlement conventions?

  1. Same day
  2. T + 1 day
  3. T + 2 days
  4. T + 3 days

Answer(s): C



Which money market instrument is supported in the secondary market by primary dealers?

  1. Deposits
  2. Commercial paper
  3. T-bill
  4. Corporate bond

Answer(s): C



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