ICMA Exam FMFQ Topic 1 Question 52 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 52
Topic #: 1

[All FMFQ Questions]

Futures contracts are described as fungible (i.e. each contract is the same as all others). Why is this true?

ABecause the contract terms are negotiable

BBecause the contract periods run consecutively

CBecause the clearing house acts as a counterparty to all trades

DBecause the clearing house is allowed to run long and short positions

Show Suggested Answer

Suggested Answer: B

by Kristel at Mar 19, 2024, 07:34 PM

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16 days ago

I'm not sure about that. I think it's C) Because the clearing house acts as a counterparty to all trades. That's what makes them fungible.

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16 days ago

The correct answer is C, because the clearing house acts as a counterparty to all trades, making each contract fungible and interchangeable.

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4 days ago

A) Because the contract terms are negotiable

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21 days ago

I agree with Janna. The fact that contract terms can be negotiated makes each contract the same as all others.

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22 days ago

I think the answer is A) Because the contract terms are negotiable.

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