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ICMA FMFQ Exam - Topic 3 Question 21 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 21
Topic #: 3
[All FMFQ Questions]

A company raises money in the capital markets by issuing a bond that is offered for sale by the issuing bank. Which of the following best describes this deal?

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Suggested Answer: A

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Marge
4 months ago
Really? I thought drawdowns were more common in these situations.
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Willard
4 months ago
No way, it's not an overdraft transaction!
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Precious
5 months ago
Wait, isn't this also a bit like a secondary market deal?
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Kallie
5 months ago
I agree, primary market makes the most sense here.
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Dortha
5 months ago
It's definitely a primary market deal!
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Noah
5 months ago
Overdraft transaction sounds wrong here, but I'm not completely confident about the difference between primary and secondary markets.
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Tamie
5 months ago
I practiced a similar question, and I think it was about how bonds are sold in the primary market. So, I might go with A.
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Kyoko
5 months ago
I'm a bit unsure, but I remember something about primary and secondary markets. Isn't a primary market where new securities are sold?
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Alverta
5 months ago
I think this is a primary market deal since the company is issuing the bond for the first time.
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Britt
5 months ago
I'm a bit confused by the wording of the question. I'll need to read it over a few times to make sure I understand the implications of each answer choice.
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Tammi
5 months ago
This question seems straightforward, I think I can handle it.
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Karl
5 months ago
Okay, I've got this. The question is asking about a process that provides reasonable assurance regarding the achievement of objectives. That sounds like it's describing internal control, so the answer must be B. Control Process.
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Shenika
5 months ago
Brainstorming makes total sense here - you can't solve a problem until you understand all the potential root causes. I'm pretty confident about option C.
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