Prepare SOFQ Question Answers - SOFQ Exam Dumps
Real ICMA SOFQ Exam Questions [Updated 2022]
ICMA SOFQ Exam Syllabus Topics:
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NEW QUESTION 17
The 'settlement cycle' within a securities market refers to the number of days:
- A. Between a trade's trade date and its value date
- B. Between a security's issue date and the value date of a trade
- C. Between a trade's trade date and the actual settlement date of a trade
- D. Between the trade date of a trade and the issue date of a security
Answer: A
NEW QUESTION 18
Accrued interest is designed to:
- A. Compensate the buyer of an interest-bearing bond for interest earned, (but not paid) relating to the next coupon payment date
- B. Compensate the seller of an interest-bearing bond for interest earned, (but not paid) since the previous coupon payment date
- C. Compensate the seller of an interest-bearing bond for interest earner, (but not paid) relating to the next coupon payment date
- D. Compensate the buyer of an interest-bearing bond for interest earned, (but not paid) since the previous coupon payment date
Answer: B
NEW QUESTION 19
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. FirmB has exposure and must request additional collateral from Firm A
- B. Firm A has exposure and must return some collateral to Firm B
- 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
Answer: D
NEW QUESTION 20
IPO' stands for:
- A. International Private Offering
- B. Initial Public Offering
- C. Integrated Post Offering
- D. Inclusive Pre Offering
Answer: B
NEW QUESTION 21
A 'put' option on a bond allows:
- A. The bondholder to redeem their bonds prior to the bond's scheduled maturity date
- B. The stock exchange to force the bondholder to redeem the bonds prior to the bond's scheduled maturity date
- C. The bond issuer to force redemption of bonds prior to the bond's scheduled maturity date
- D. The regulator to force the issuer to redeem the bonds prior to the bond's scheduled maturity date
Answer: A
NEW QUESTION 22
Grey market trading refers to:
- A. Trading of equity and bonds by investors aged 65 and over at the start of the tax year
- B. Trading in convertible and exchangeable bonds prior to their conversion
- C. Trading in a new issue of bonds by parties not involved in the syndication process
- D. Trading in corporate bonds following the bondholder's decision to take-up a put option
Answer: C
NEW QUESTION 23
Where the term 'Ordinary Shares' is used in the UK, the equivalent term in the US is:
- A. Normal Shares
- B. Corporate Shares
- C. Ordinary Stock
- D. Common stock
Answer: D
NEW QUESTION 24
Bond types that are traded at a deeply discounted price are:
- A. Zero coupon bonds
- B. Floating rate notes
- C. Convertible bonds and Exchangeable bonds
- D. Fixed rate bonds
Answer: A
NEW QUESTION 25
The abbreviation WAC stands for:
- A. Wheel and Calculate
- B. Wait About Control
- C. Weighted Average Cost
- D. West Against Charge
Answer: C
NEW QUESTION 26
Within internal books and records, the recording of the trading book on a securities trade facilitates:
- A. Reconciliation of settled positions, per trading book and per security - between the trading department and operations
- B. Reconciliation of settled positions, per trading book and per security - between operations and the firm's custodian
- C. Reconciliation of trading positions, per trading book and per security - between the firm's counterparty and the firm's custodian
- D. Reconciliation of trading positions, per trading book and per security - between the trading department and operations
Answer: D
NEW QUESTION 27
The ISO currency code 'CHF represents:
- A. Swiss France
- B. Norwegian Krone
- C. Chinese Renminbi
- D. Ivory Coast Franc
Answer: A
NEW QUESTION 28
A bond which pays no interest during its lifetime sand repays capital on its maturity date is known as:
- A. A nil interest bond
- B. A zero coupon bond
- C. A zero interest bond
- D. A zero interest note
Answer: B
NEW QUESTION 29
Thefollowing is an inaccurate statement:
- A. Warrants will expire if not exercised by the expiry date
- B. Warrants are exercisable by the warrant holder
- C. Warrants have a variable exercise price
- D. Warrants are detachable from the original security
Answer: C
NEW QUESTION 30
Internal trading systems typically do not:
- A. Hold the firm's current trading positions
- B. Reflect the firm's settled positions at CSDs/custodians
- C. Have the capability to amend and cancel trades
- D. Have the capability to capture new trades
Answer: B
NEW QUESTION 31
An example of an organisation classified as a sovereign wealth fund is:
- A. China Investment Corporation
- B. German Government
- C. United Nations
- D. Xerox Corporation
Answer: A
NEW QUESTION 32
A firm executing a securities trade in the capacity of agency broker intends:
- A. To take a securities position, and not to remain market risk neutral
- B. To take a securities position, and to remain market risk neutral
- C. Not to take a securities position, and to remain market risk neutral
- D. Not to take a securities position, and not to remain market risk neutra
Answer: B
NEW QUESTION 33
The ISIN stands for:
- A. International Securities Identification Number; a 13-character alpha-numeric code
- B. International Secondary ID Notation; a 12-character alpha-numeric code
- C. International Secondary ID Notation; a 13-character alpha-numeric code
- D. International Securities Identification Number; a 12-character alpha-numeric code
Answer: D
NEW QUESTION 34
A cash amount of GBP 5,909,658.47 lent on a Thursday until the second Monday (just over 1 week later) at a rate of 2.973%, would attract:
- A. 9 days of interest and a cash interest amount of GBP 4392.35
- B. 7 days of interest and a cash interest amount of GBP 3369.48
- C. 11 days of interest and a cash interest amount of GBP 5294.89
- D. 13 days of interest and a cash interest amount of GBP 6344.51
Answer: C
NEW QUESTION 35
The US regulator 'SEC stands for:
- A. Securities Exchange Corporation
- B. Securities Enterprise Conglomerate
- C. Securities Endeavour Company
- D. Securities and Exchange Commission
Answer: D
NEW QUESTION 36
The term 'SSI' stands for:
- A. Standard Securities Instruction
- B. Standing Settlement Instruction
- C. Securities Standing Instruction
- D. Settlement Standard Instruction
Answer: B
NEW QUESTION 37
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