ICMA Exam FMFQ Topic 3 Question 68 Discussion

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

Question #: 68
Topic #: 3

[All Financial Markets Foundation Qualification Questions]

Thinking about dealing on two-way prices, which of the following statements is not true?

APrice-makers quote higher offers than bids

BPrice-makers buy high and sell low

CPrice-takers sell low and buy high

DPrice-takers prefer higher bids and lower offers

Show Suggested Answer

Suggested Answer: B

by Alline at Sep 12, 2024, 07:49 PM

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Daniel

2 days ago

This question is making my head spin. I'll just go with option D and hope for the best!

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Ilene

6 days ago

Hmm, that makes sense. Price-takers are the ones who have to accept the prices offered to them.

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Corazon

13 days ago

Option C seems a bit off to me. Isn't it the other way around for price-takers? They buy high and sell low, right?

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Deandrea

16 days ago

I'm pretty sure the correct answer is B. Price-makers quote higher offers than bids, not the other way around.

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Hildred

17 days ago

I disagree, I believe the correct answer is C) Price-takers sell low and buy high.

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Veronika

19 days ago

Hmm, I think option B is the one that's not true. Price-makers definitely don't buy high and sell low, that's just silly!

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Tomoko

3 days ago

User 2: Price-makers always aim to buy low and sell high.

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Elroy

8 days ago

User 1: I agree, option B doesn't make sense.

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Ilene

23 days ago

I think the answer is B) Price-makers buy high and sell low.

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