ICMA sofq practice test

Securities Operations Foundation Qualification (SOFQ) Exam


Question 1

The 3 largest centres for foreign exchange trading are:

  • A. US, 2) Japan, 3) UK
  • B. Hong Kong, 2) UK, 3) US
  • C. US, 2) Singapore, 3) UK
  • D. UK, 2) US, 3) Singapore
Answer:

D

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Question 2

The date on which a securities trade is intended to settle is:

  • A. The actual settlement date
  • B. The contractual trade date
  • C. The value date
  • D. The trade date
Answer:

C

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Question 3

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
Answer:

C

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Question 4

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. Firm A has exposure and must return some collateral to Firm B
  • B. Firm B has exposure and must request additional collateral from Firm A
  • 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

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Question 5

The following is an inaccurate statement:

  • A. Warrants have a variable exercise price
  • B. Warrants are exercisable by the warrant holder
  • C. Warrants will expire if not exercised by the expiry date
  • D. Warrants are detachable from the original security
Answer:

A

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Question 6

A S.W.I.FT. 'Bank Identifier Code' comprises::

  • A. A region code, a country code and a city code
  • B. A bank code, a country code and a location code
  • C. A continent code, a country code and a municipality code
  • D. A bank code, a continent code and a currency code
Answer:

B

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Question 7

The abbreviation WAC stands for:

  • A. Wheel and Calculate
  • B. Weighted Average Cost
  • C. West Against Charge
  • D. Wait About Control
Answer:

B

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Question 8

The price of a bond trade which excludes accrued interest is known as:

  • A. A dirty price
  • B. A fresh price
  • C. A clean price
  • D. A cloudy price
Answer:

C

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Question 9

The term 'SSI' stands for:

  • A. Standing Settlement Instruction
  • B. Standard Securities Instruction
  • C. Settlement Standard Instruction
  • D. Securities Standing Instruction
Answer:

A

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Question 10

The number of days of accrued interest, and the cash value of accrued interest - on a trade of USD
45,000,000 World Bank 4.37% Bonds 1st December 2032, paying interest semi-annually on 1st
December and Ist June, trade date 22~d October, value date 25tl October, is:

  • A. 144 days and USD 786,600.00
  • B. 174 days and USD 950,475.00
  • C. 141 days and USD 770,212.50
  • D. 171 days and USD 934,087-50
Answer:

A

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