FISD Financial Information Associate (FIA) Module 1 Practice Test

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