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ICMA FMFQ Exam - Topic 5 Question 86 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 86
Topic #: 5
[All FMFQ Questions]

You purchase a USD Treasury Bill. Which of the following sentences best describes the trade you have done?

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Suggested Answer: B

by Mauricio at Nov 25, 2025, 06:41 PM

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Estrella
11 days ago
I thought they paid interest too?
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Terrilyn
16 days ago
I agree, option B sounds right!
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Keneth
21 days ago
A Treasury Bill is sold at a discount, so it's definitely less than face value.
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Shalon
27 days ago
I'm just glad I don't have to worry about interest rates or credit risk with a Treasury Bill. Investing made easy!
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Frank
1 month ago
D) is the way to go. After all, who doesn't want to pay less and get the full face value back? That's the American way!
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Rana
1 month ago
B) makes the most sense. Who doesn't love getting a discount on a government-backed security?
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Marta
1 month ago
I always get Treasury Bills and Treasury Bonds mixed up. Maybe I should just stick to investing in cat memes instead.
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Cecilia
2 months ago
I vaguely recall that T-Bills don’t pay interest in the traditional sense, so I’m leaning towards D, but I’m not entirely confident.
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Carmen
2 months ago
I’m a bit confused about the terms. I thought all Treasury Bills were considered credit risk free, but I’m not sure about the interest rate part.
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Yasuko
2 months ago
I remember learning about Treasury Bills in class. I think the key is understanding that you always receive the face value at maturity, so the question is really about the purchase price. Let me think this through...
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Colene
2 months ago
Ugh, I hate these multiple-choice questions with all the similar-sounding options. I'm just going to read through each one slowly and try to eliminate the wrong answers.
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Eliz
2 months ago
Okay, I've got this. Treasury Bills are risk-free government securities, so the key is whether you pay face value or less than face value. I'm pretty confident I can get this right.
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Dante
2 months ago
A) sounds good, but I think D) is the right answer. Treasury Bills are interest rate risk-free, not credit risk-free.
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Gianna
3 months ago
I remember studying that Treasury Bills are sold at a discount, so I think it might be option B or D.
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Kerry
3 months ago
B) is the correct answer. You get the face value at maturity when you buy a Treasury Bill at a discount.
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Donette
3 months ago
Wait, are we sure it's credit risk free?
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Cecil
3 months ago
I practiced a similar question where the focus was on the discount aspect. I feel like B is the right choice since we pay less than face value.
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Veronika
3 months ago
Hmm, I'm a bit confused by the wording here. Is there a difference between "credit risk free" and "interest rate risk free"? I'll need to think through that carefully.
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Gregg
4 months ago
This seems like a straightforward question about Treasury Bills. I think I know the answer, but I'll double-check the key details to be sure.
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