SOFQ Online Practice Questions and Answers

A bond which permits the issuer to redeem the bond prior to its maturity date is known as a:

A. Demandable bond

B. Callable bond

C. Requestable bond

D. Askable bond

The date on which a securities trade is intended to settle is: A. The actual settlement date

B. The contractual trade date

C. The value date

D. The trade date

Where the term 'Ordinary Shares' is used in the UK, the equivalent term in the US is:

A. Common stock

B. Corporate Shares

C. Normal Shares

D. Ordinary Stock

The ISIN stands for:

A. International Securities Identification Number; a 13-character alpha-numeric code

B. International Secondary ID Notation; a 13-character alpha-numeric code

C. International Securities Identification Number; a 12-character alpha-numeric code

D. International Secondary ID Notation; a 12-character alpha-numeric code

The type of organisation that specializes in deposit-taking and cash loans is known as a:

A. Mutual fund

B. Commercial bank

C. Investment bank

D. Private bank

The physical substances of natural gas/ barley and zinc fall within the following financial heading:

A. Cash

B. Derivatives

C. Commodities

D. Securities

A bond whose coupon rate increases at pre-specified dates and at a pre-specified interest rate is known as:

A. A floating rate note

B. A convertible bond

C. A mortgage-backed security

D. A step-up bond

A S.W.I.FT. MT541 instructs a custodian to:

A. Receive securities on a Free of Payment basis

B. Receive securities on a Delivery versus Payment basis

C. Deliver securities on a Delivery versus Payment basis

D. Deliver securities on a Free of Payment basis

A firm executing a securities trade in the capacity of agency broker intends:

A. To take a securities position, and to remain market risk neutral

B. Not to take a securities position, and not to remain market risk neutra

C. Not to take a securities position, and to remain market risk neutral

D. To take a securities position, and not to remain market risk neutral

The 'settlement cycle' within a securities market refers to the number of days:

A. Between a trade's trade date and the actual settlement date of a trade

B. Between a security's issue date and the value date of a trade

C. Between a trade's trade date and its value date

D. Between the trade date of a trade and the issue date of a security