ICMA Exam FMFQ Topic 6 Question 79 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 79
Topic #: 6

[All FMFQ Questions]

You have asked a bank to give you a rate at which you can sell SEK (Sweish Krone) and buy NOK (Norwegian Krone) for delivery in two days. What is the name of this sort of FX rate?

AQuote rate

BCross rate

CForward rate

DDual rate

Show Suggested Answer

Suggested Answer: B

by Margo at Apr 08, 2025, 10:18 AM

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Jeannine

2 days ago

I think this is asking for the name of the FX rate when you're exchanging one currency for another, with delivery in two days. The options seem to be talking about different types of FX rates, so I'll need to carefully consider each one.

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Yuki

4 months ago

I'll go with B) Cross rate. It's the only one that sounds like it actually applies to exchanging between two foreign currencies.

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Earnestine

4 months ago

Yes, Cross rate is the term used for exchanging one currency for another. It's definitely the right choice.

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Jesus

4 months ago

I agree, Cross rate is the correct term for exchanging SEK for NOK.

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Kimberlie

4 months ago

I think it's B) Cross rate too. It makes sense for exchanging between two different currencies.

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Ernie

5 months ago

A) Quote rate? More like 'what rate?' I'm not even sure what that means in this context.

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Buck

5 months ago

D) Dual rate? What kind of rate is that? Sounds like something you'd find in a sci-fi novel, not a banking exam.

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Jerry

3 months ago

D) Thanks for the clarification, I'll remember that for my exam.

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Justine

3 months ago

C) It's used when the currencies being traded are not the local currency.

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Nenita

3 months ago

B) Cross rate is the rate at which you can exchange one currency for another.

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Shawana

3 months ago

A) It's actually a Cross rate, not a Dual rate.

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Nina

3 months ago

D) Dual rate

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Shaun

3 months ago

C) Forward rate

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Rosendo

4 months ago

B) Cross rate

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Lucia

4 months ago

A) Quote rate

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Gretchen

5 months ago

C) Forward rate seems like the right answer here. We're talking about a future delivery, so that makes sense.

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Katie

4 months ago

C) Forward rate

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Leonora

4 months ago

B) Cross rate

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Lashawnda

4 months ago

A) Quote rate

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Arlette

5 months ago

I think the answer is B) Cross rate. That's the most logical choice for exchanging between two currencies like SEK and NOK.

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Charlesetta

4 months ago

Actually, it's B) Cross rate. That's the rate at which two currencies are exchanged, like SEK and NOK.

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Latricia

4 months ago

I think it's A) Quote rate. That's the rate at which a bank or broker will sell a currency to you.

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Casey

5 months ago

I agree, B) Cross rate is the correct answer. It's the rate at which you can exchange one currency for another.

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Alaine

6 months ago

I'm not sure, but I think it might be C) Forward rate, since it's for delivery in two days.

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Nadine

6 months ago

I agree with Elinore, because it involves two different currencies.

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Elinore

6 months ago

I think the answer is B) Cross rate.

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