FISD Financial Information Associate (FIA) Module 1 Practice Test

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