ICMA Exam FMFQ Topic 1 Question 69 Discussion

Actual exam question for ICMA's Financial Markets Foundation Qualification exam

Question #: 69
Topic #: 1

[All Financial Markets Foundation Qualification Questions]

Which of the following methods of raising funds will not be used by governments?

ADirect borrowing from banks

BIssuing bonds

CIssuing short-term debt

DIssuing equity

Show Suggested Answer

Suggested Answer: D

by Olive at Sep 14, 2024, 06:33 PM

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Daniel

4 days ago

I agree with Carin. Governments don't usually sell stocks or equity to the public.

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Melissa

8 days ago

I believe option A) Direct borrowing from banks is also not commonly used by governments as they have other methods like issuing bonds.

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Walton

10 days ago

Option B seems like the most common way for governments to raise funds. Bonds are a classic choice.

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Vicki

12 days ago

Haha, imagine a government trying to sell shares like a company. That would be a sight to see!

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Macy

16 days ago

I agree with Val. Governments usually don't issue equity because they are not profit-driven entities.

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Val

17 days ago

I think governments won't use option D) Issuing equity.

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Carin

27 days ago

I think option D is the correct answer. Governments typically don't issue equity to raise funds.

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Milly

8 days ago

C) Issuing short-term debt

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Stefania

14 days ago

B) Issuing bonds

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Charlene

22 days ago

A) Direct borrowing from banks

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