SOFQ Online Practice Questions and Answers

The following are examples of money market instruments:

A. Zero coupon bonds and Floating-rate notes

B. Convertible bonds and Mortgage-Backed Securities

C. Fixed-rate bonds and Step-up bonds

D. Commercial Paper and Certificate of Deposit

The type of organisation that provides securities underwriting services is known as a

A. Investment bank

B. Insurance company

C. Commercial bank

D. Pension fund

The term 'SSI' stands for:

A. Standing Settlement Instruction

B. Standard Securities Instruction

C. Settlement Standard Instruction

D. Securities Standing Instruction

The ISO currency code 'CHF represents:

A. Ivory Coast Franc

B. Chinese Renminbi

C. Swiss France

D. Norwegian Krone

A bond which pays interest semi-annually quotes its interest rate:

A. Relative to a period of 6 months

B. Relative to a period of 24 months

C. Relative to a period of 12 months

D. Relative to a period of 3 months

On a scale of 1,500,000 Microsoft Corporation shares at a price of USD 3.78 per share, the SEC Fee payable is::

A. USD 1.89

B. USD 18.90

C. USD 189.00

D. USD 1890.00

A firm executing a securities trade in the capacity of agency broker intends:

A. To take a securities position, and to remain market risk neutral

B. Not to take a securities position, and not to remain market risk neutra

C. Not to take a securities position, and to remain market risk neutral

D. To take a securities position, and not to remain market risk neutral

Within the security entitled 'Exxon Mobil Corporation USD 1.00 Common Stock', the 'USD 1.00' is commonly known as the:

A. issue value

B. par value

C. notional quantity

D. share size

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

The abbreviation WAC stands for:

A. Wheel and Calculate

B. Weighted Average Cost

C. West Against Charge

D. Wait About Control