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ICMA FMFQ Exam - Topic 5 Question 31 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 31
Topic #: 5
[All FMFQ Questions]

Which of the following factors is true of forward contracts but not of futures contracts?

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Suggested Answer: C

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Rebbecca
4 months ago
Flexibility in maturity? Sounds interesting, but I need to look into that!
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Lonna
4 months ago
A is also true, but I think C is the main difference.
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Josephine
5 months ago
Wait, are you sure about that? I thought both could be OTC.
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Tonette
5 months ago
Totally agree with C! Futures are standardized, unlike forwards.
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Casie
5 months ago
C is correct! Forward contracts are indeed bilateral OTC.
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Justine
5 months ago
I feel like option B might be misleading; while forward contracts can have flexible terms, I’m not entirely sure if that’s the main difference from futures.
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Shannon
5 months ago
I practiced a question similar to this, and I think option A could be correct since forward contracts do fix rates for future transactions.
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Jacqueline
5 months ago
I remember that forward contracts are often customized and traded OTC, which might relate to option C about bilateral contracts.
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Barney
5 months ago
I'm a bit unsure, but I think futures contracts are standardized and traded on exchanges, so maybe that makes forward contracts more flexible?
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Dorothy
5 months ago
Hmm, I'm a bit confused on this one. I know there are commands related to logical volumes, but I can't quite remember the specific one for creating a backup snapshot. I'll have to think this through carefully.
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Carma
5 months ago
Okay, let's see here. A data center's physical infrastructure would include things like servers, racks, switches, and other networking equipment. I'm leaning towards C as the best answer, but I'll double-check the other options just to be sure.
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Sylvia
5 months ago
Hmm, this seems like a tricky one. I'll need to carefully consider the trade-offs between the committed use discounts and the spikes in CPU usage.
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Jules
5 months ago
I always mix up conservative and matching financing. In this case, I want to say matching because they have specific assets in mind, but it's confusing!
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Gilma
5 months ago
I think pay-as-you-go was mentioned in a similar practice question we did last week, so it might be relevant here too.
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