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FFM Exam Pass 2022 Flashcards | StudBud
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FFM Exam Pass 2022
FFM Exam Pass 2022
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1
Which of the following are ALL money market instruments?
Bills, certificate of deposit and deposits
Cheques, certificate of deposit and deposits
Bills, deposits and cash
Bills, cash and cheques
2
Which of the following correctly describes how
interest payment outflows
are classified?
A discretionary cash flow.
A priority cash flow.
A financial cash flow.
An operational cash flow.
3
Why is liquidity management important?
To guarantee that shareholders will receive a dividend.
To ensure the company meets it debt covenants.
To ensure that company have cash to discharge commitment.
To ensure the company doesn't make a loss.
4
A Central Bank deals in government debt and acts as lender of the last resort.
False
True
5
Which of the following is
NOT
the reason that a business may offer its customers discounts to pay early?
To avoid expensive inventory cost.
Reduction in bad debts.
Improve the company's liquidity position.
Reduce in the cost of financing receivables.
6
Repaying some of the capital during the life of the loan & bulk of the capital being repaid on maturity. What is it?
Mortgage-style repayment pattern
Balloon repayment pattern
Classic repayment pattern
Bullet repayment pattern
7
ABC has 1million $0.50 par values shares in issue. Its profit after tax was $0.8 million. What is the ABC's EPS?
$0.75
$1.5
$0.4
$0.8
8
What of the following is
NOT
the payment to the
suppliers of finance
?
Dividends.
Interest.
Drawings (principle).
Charitable contribution
9
Which of the following is NOT a responsibility of a customer to its bank?
To ensure safety and security of the cheque book
To keep authorizations current
To give responsible financial advice
To provide safeguards for electronic communications
10
On 19 March 20X0 the market price of 9% Treasury Stock 20X9 is $134.1742. What is the interest yield?
6.71%
5.71%
8%
3%
11
Issuing new shares to existing shareholders instead of a normal cash dividend. What type of share issue is it?
Rights issue
Share split
Scrip dividend
Bonus issue
12
Interest payments on debt attract tax relief.
False
True
13
A bank is offering 6% interest on a deposit account. Inflation is 3%. What is the real rate of return on the account?
9%
2.91%
3%
6%
14
UNQ is a small unquoted company looking for raise equity finance. Which of the following finance is least suitable?
Business angel
Right issue
Venture capital
Public issue - IPO
