ICMA Exam FMFQ Topic 1 Question 69 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 69
Topic #: 1

[All FMFQ 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

7 months ago

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

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Deja

6 months ago

D) Issuing equity

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Tracey

6 months ago

C) Issuing short-term debt

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Alline

6 months ago

B) Issuing bonds

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Daniela

6 months ago

A) Direct borrowing from banks

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Melissa

7 months 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

7 months ago

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

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Dana

5 months ago

Issuing equity is not typically used by governments to raise funds.

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Fatima

5 months ago

Issuing short-term debt can also be a viable option for governments.

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Chery

6 months ago

Direct borrowing from banks is also a common method used by governments.

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Florinda

6 months ago

Bonds are indeed a popular choice for governments to raise funds.

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Edgar

6 months ago

D) Issuing equity

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Melodie

6 months ago

C) Issuing short-term debt

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Ligia

6 months ago

B) Issuing bonds

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Carmela

6 months ago

A) Direct borrowing from banks

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Vicki

7 months ago

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

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Valentin

6 months ago

C) Issuing short-term debt

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Lorrine

6 months ago

B) Issuing bonds

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Tamala

6 months ago

A) Direct borrowing from banks

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Macy

7 months ago

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

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Val

7 months ago

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

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Carin

8 months ago

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

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Milly

7 months ago

C) Issuing short-term debt

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Stefania

7 months ago

B) Issuing bonds

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Charlene

7 months ago

A) Direct borrowing from banks

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