FISD Financial Information Associate (FIA) Module 1 Practice Test

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• Which of the following is NOT listed as a major sell side firm?
• Which bond category has a borrower that is a government?
• Level 1 Data is also termed which of the following?
• Which statement best describes technical analysis?
• Under Commodity Products, which category includes Gold and Silver?
• Level 1 Data is best described as:
• Which statement best characterizes the middle office?
• Which item is a bond market data source?
• Which description best defines index management?
• Which function uses analytics, models, fundamental data to create recommendations for buying-holding and selling securities?
• Which type of bond category includes entities that support funding for home mortgages but are not the same as government agencies?
• Which feature of options creates significant leverage due to the small premium price for the right?
• What does Bid represent in market data?
• An individual investor, investing and trading for their own account:
• Which of the following would be considered a buy side firm?
• Which category is listed as a participant in the FX market?
• Which statement is true about regulatory bodies?
• FX Spot settlement: which statement is accurate?
• Which term is commonly used to describe the side of the market that issues capital and transacts securities?
• Which item is not typically included in standard yield calculations?
• Municipal bonds are typically tax-free bonds carrying lower interest rates to fund a community's development projects. Which option lists the municipal bonds among the choices?
• FX Spot settlement timing: which statement is correct?
• Which of the following is a Pre Trade Activity?
• Which statement best describes the front office in a financial services firm?
• Which statement correctly describes the National Numbering Agency (NNA) in relation to ISIN?
• Which of the following is not listed as a type of data used in the bond market?
• Passive management or indexing means?
• Which statement best defines the back office?
• Which statement best describes Level 2 Data in relation to Level 1 Data?
• Which statement best describes a mutual fund?
• Which organization is responsible for issuing ISIN codes in each country?
• What is the general relationship between yield and price for bonds?
• Which of the following is not typically a regulator in the United States?
• Which function analyses returns and understands components of performance by sector or index?
• Identify examples of buy side firms:
• Which of the following are examples of trading systems?
• Which group of countries are not members of the European Union?
• Which platform provides pre-trade information and a mechanism for executing swap transactions among eligible participants?
• Which term describes evaluating securities to reflect the characteristics of an underlying index?
• Perpetual bonds are defined as
• An investment bank assists companies involved in mergers and acquisitions (M&A) - both from the seller's side and buyer's side.
• Which statement about an Alternative Trading System (ATS) best describes it?
• Which statement is true about unit trusts and investment trusts?
• Which term refers to exchanges that may list for trading futures or option contracts based on all types of commodities and allow access to their facilities by all types of traders?
• Which statement about short selling is accurate?
• Which service is commonly offered by brokers to attract and retain buy-side clients?
• What is the role of governments and regulators in financial markets?
• Which instrument is a pool of mortgage loans packaged into a security?
• True or False: An individual investor would typically buy and sell in the secondary markets using a brokerage (sell side) firm.
• Which statement best describes fundamental analysis?
• A securities analyst who subscribes to the research discipline of "technical analysis" could be expected to:
• Which instrument is typically longer term borrowing instruments used by corporations to fund company financing needs?
• Which term describes a market condition where there are many shares available to buy and sell, allowing trades to be easily matched and filled?
• "Go Long" means:
• Which statement about options is true?
• Market data management encompasses tasks related to managing information used across which areas of a financial institution?
• Which of the following can be underlying assets of an ETF?
• Which statement best defines yield on a bond?
• An example of an operations manager's role would be one of:
• Which description best defines a dark pool?
• The Primary Market is described as:
• Municipal bonds are typically tax-free and fund a community's development projects. Which option completes this description?
• Which area focuses on internal data on holdings exposure and entity data used for risk management?
• An agency broker's role is to:
• Which of the following is NOT a money market instrument?
• Algorithmic trading is characterized by which of the following?
• What is the primary function of a clearing agent or clearing house?
• Investment trusts are:
• A securities analyst who subscribes to fundamental analysis would be expected to:
• What is a Multilateral Trading Facility (MTF)?
• What mainly drove the creation of ATS and MTF alternative execution venues?
• The buy side in financial markets generally refers to which group?
• What is a derivative?
• Which of the following is NOT listed as an FX spot trading platform?
• Which area manages stock dividends, mergers, stock splits, and spin-offs?
• Which function analyzes sector, index and returns data to understand components of performance?
• Which organization is a central bank in the United States?
• Which characteristic describes a Designated Contract Market (DCM)?
• Participants in the capital markets include which groups?
• Which of the following is a primary function of central banks?
• How does a proprietary trader differ from an agency broker?
• Portfolio management is primarily responsible for?
• Which statement best describes US sponsored agencies?
• A bond trading above its face value is said to be trading at a premium. Which statement supports this?
• Which function consumes end-of-day pricing and valuations data and manages pricing and valuation of securities?
• Which discipline may be used for both active and passive management, based on industry measures?
• The ETF sponsor is:
• Regarding buy-side firms, which statement is true?
• If a bond is trading at par, what does its price equal?
• Which option best represents a money market data type?
• Which of the following is an example of a central bank?
• Which is an example of a money market instrument?
• Which of the following are key benefits of an exchange?
• Which is a money market instrument example?
• Which statement best describes a broker-dealer?
• Depth of Market is also known as what?
• Which statement describes price transparency on non-traditional exchanges?
• Energy is a commodity category under Commodity Products. Which item would be included in this category?
• Which statement correctly describes Open and Close prices?
• What is the primary function of custodians in securities markets?
• CMO (Collateralised Mortgage Obligation) is described as a set of restructured components typically made out of a MBS. Which option lists CMO?
• Level 2 Data provides which?
• Which statement describes the role of an interdealer broker in fixed income trading?
• Prior to 1980, market data was typically managed by which department?
• Which organization is a US regulator?
• Fundamental analysis is best described as?
• Which term describes the periodic interest payments received by bondholders?
• Which option includes all listed FX spot trading platforms?
• For a bond, what is the meaning of par value in terms of repayment at maturity?
• Which statement describes a commercial bank's typical services?
• What services characterize a retail bank?
• An agency broker is best described as:
• The lifecycle of the trade includes the following component(s):
• What is the term for using computers programmed to place trades at high speed?
• Which term best describes price movements that contribute to yield via capital gains when prices rise?
• What form of trade execution have traditional exchanges largely moved to?
• Yield on a bond is best described as?
• What does par value represent in a bond?
• A higher Depth of Market indicates what about liquidity?
• Which department is primarily responsible for settlements and clearing the trades?
• A derivative swap typically involves?
• Which office is primarily involved in settlements, clearing, accounting, record keeping, cash management and compliance?
• In the context of stock positions, which statement is accurate?
• Depth of Market (DOM) / Order book provides which of the following?
• Which statement best describes the distinction between active management and indexing?
• Which of the following is NOT listed as a commodity product category?
• An ETF is defined as:
• Which statement about total return on a bond is accurate?
• Which statement best defines a financial intermediary?
• An interdealer broker acts as what in fixed income trading?
• Why did market data management become a discipline within financial institutions?
• Fixed income instruments available on non-traditional exchanges have seen a growing trend toward which form?
• Which statement describes best execution?
• Which of the following is an example of a trading system mentioned in the material?
• Which entity is a central bank?
• OTC stands for Over The Counter or off exchange. In trading, OTC markets are typically characterized as trading that occurs:
• Quantitative analysis may be used for?
• Hedge funds were initially termed "hedged funds" because they leverage long and short positions to manage risk.
• Which function generally monitors and polices a firm's exposure to risk?
• Options, CDOs, CFDs and swaps are all examples of
• Which process involves borrowing stocks as part of short selling?
• Which statement correctly differentiates dark pools from lit pools?
• What is the Buy side?
• Which term describes a platform for financial swap trading that provides pre-trade information and a mechanism for executing swap transactions among eligible participants?
• Which of the following describes the primary role of an investment bank?
• Which statement best describes futures contracts?
• Which of the following is typically included in the list of major sell side firms?
• The coupon of a bond refers to
• What does EOD stand for in trading terms?
• What is the primary function of the capital formulation process?
• ETF shares:
• Which of the following is not a money market instrument?
• Total return on a bond includes which components?
• Which of the following statements about the major sell side firms is accurate given typical market roles?
• What best describes a lit pool?
• Which of the following is not typically considered a major buy-side firm?
• Which outcome do ATS and MTF venues primarily aim to improve?
• Which financial institution provides clearing and settlement services for futures exchanges?
• In market terminology, what is a 'Trade'?
• Which of the following best describes the sell side in financial markets?
• Retail brokers primarily service which client group?
• How is bond price typically quoted?
• Technical analysis focuses on?
• Which statement accurately describes a bear market?
• Which statement about unit trusts is true?
• Which term is defined as long-term debt instruments with maturities over a year?
• MBS (Mortgage Backed Securities) are described as a pooling of mortgage loans to consumers, packaged into a security. Which option lists MBS?
• The formation of capital is based on the primary issuance of which two types of financial instrument?
• Which area handles data about the trade itself and the process of transferring ownership and funds?
• Which of the following best defines par value?
• Which is an example of a post-trade operation?
• Which of the following is not typically considered a buy-side firm?
• Which office is generally customer facing, such as investment management or trading floor functions?
• Which statement is true about FX Spot?
• Which of the following is a FX market participant?
• ABS (Asset Backed Security) is described as any security that has some form of collateral in the form of a physical asset. Which option lists ABS?
• The Office of Financial Research is:
• Mutual Funds
• Which item is a data source in the bond market data feed?
• Which statement correctly describes ISIN codes?
• Which statement best describes the 'secondary market'?
• Which term describes the use of computers to place trades at high speed?
• What does the term 'Ask' (or Offer) represent?
• Which office primarily provides supporting functions for the front office and facilitates connectivity through the organisation?
• Which of the following is a Post Trade Activity?
• "Short" means that investors:
• Which office links the front and back and provides supporting functions including data feeding, order management, decision support, execution services, risk management, ticket input, trade confirmation, trade matching and clearing?
• An example of the role performed by a trader would be to:
• Market data management is used across which parts of a financial institution?
• Which market involves the first issuance of new securities?
• Which function is responsible for making holdings decisions in an investment portfolio?
• The statement that best execution and settlement are not part of the trade lifecycle is true or false?