ICMA FMFQ Exam - Topic 6 Question 67 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 67
Topic #: 6

[All FMFQ Questions]

Which of the following statements in NOT true of money market products?

AMoney market products are typically less than a year to maturity

BMoney market products can be either interest bearing or discount instruments

CMoney market products are only issued by banks

DMoney market products cover a range of credit risk from credit risk free to sub-investment grade

Show Suggested Answer

Suggested Answer: C

by Derick at Sep 16, 2024, 09:08 PM

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Artie

3 months ago

I thought money market products were super safe, not sub-investment grade!

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Jamal

3 months ago

Yep, they can definitely include different credit risks.

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Mozell

4 months ago

Wait, are you saying they’re only from banks? That sounds off.

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Kindra

4 months ago

Totally agree, they can be issued by more than just banks!

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Ilona

4 months ago

Money market products usually have maturities under a year.

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Elza

4 months ago

I practiced a question like this before, and I think C is definitely the odd one out since corporations can issue money market products too.

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Arletta

5 months ago

I vaguely recall that money market products can cover a range of credit risks, which makes D sound right. But I’m uncertain if C is the one that's not true.

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Mindy

5 months ago

I remember studying that money market products can be interest bearing or discount instruments, so B should be true. But C is confusing because I thought only banks issued them.

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Wenona

5 months ago

I think money market products usually have short maturities, so A seems true. But I'm not sure about C; I feel like other entities issue them too.

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Mitsue

5 months ago

I'm feeling a little lost on this one. Can someone give me a quick refresher on the basics of money market products? I want to make sure I understand the key characteristics before trying to answer.

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Okay, I've got this. Money market products are short-term, typically less than a year to maturity, and can be either interest-bearing or discount instruments. They are issued by a range of entities, not just banks. I'll select the option that contradicts those facts.

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Shantay

5 months ago

Hmm, I'm a bit unsure about this one. The options seem pretty similar, so I'll need to carefully read through each statement to identify the one that is not true.

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Lavelle

5 months ago

This looks like a straightforward question on money market products. I'll start by reviewing what I know about the key characteristics of money market instruments.

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