ICMA Exam FMFQ Topic 6 Question 67 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 67
Topic #: 6

[All FMFQ Questions]

Which of the following statements in NOT true of money market products?

AMoney market products are typically less than a year to maturity

BMoney market products can be either interest bearing or discount instruments

CMoney market products are only issued by banks

DMoney market products cover a range of credit risk from credit risk free to sub-investment grade

Show Suggested Answer

Suggested Answer: C

by Derick at Sep 16, 2024, 09:08 PM

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Catarina

2 months ago

Haha, I bet the people who wrote this question were having a field day coming up with these tricky options!

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Brent

1 months ago

C) Money market products are only issued by banks

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Van

2 months ago

B) Money market products can be either interest bearing or discount instruments

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Noel

2 months ago

A) Money market products are typically less than a year to maturity

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Stefany

2 months ago

I think Option D is the correct answer here. Money market products cover a wide range of credit risk, from the safest to the more speculative.

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Polly

1 months ago

Yes, it's important to understand the different levels of risk in money market products.

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Henriette

1 months ago

I didn't know that, thanks for sharing.

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Elbert

2 months ago

That's true, they can range from credit risk free to sub-investment grade.

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Letha

2 months ago

I agree, option D is correct. Money market products cover a range of credit risk.

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Leontine

3 months ago

Hmm, that makes sense. Thanks for sharing your perspective.

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Delbert

3 months ago

Option C is definitely not true. Money market products can be issued by a variety of institutions, not just banks.

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Marguerita

1 months ago

D) Money market products cover a range of credit risk from credit risk free to sub-investment grade

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Tawny

1 months ago

C) Money market products are only issued by banks

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Breana

1 months ago

B) Money market products can be either interest bearing or discount instruments

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Lisandra

3 months ago

A) Money market products are typically less than a year to maturity

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Mammie

3 months ago

I disagree, I believe the correct answer is D) Money market products cover a range of credit risk from credit risk free to sub-investment grade.

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Leontine

3 months ago

I think the answer is C) Money market products are only issued by banks.

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