ICMA Exam FMFQ Topic 3 Question 68 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 68
Topic #: 3

[All FMFQ 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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Corazon

7 months ago

Haha, if price-makers bought high and sold low, they'd be out of business in no time. That's not how it works!

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Daniel

7 months ago

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

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Cassie

6 months ago

User 3: Yeah, that makes sense. Let's go with option D.

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Helaine

6 months ago

I agree, price-takers prefer higher bids and lower offers.

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Erick

6 months ago

I think option D is correct.

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Ilene

7 months ago

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

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Corazon

7 months 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

7 months 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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Izetta

6 months ago

C) Price-takers sell low and buy high

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Leana

6 months ago

B) Price-makers buy high and sell low

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Yong

6 months ago

A) Price-makers quote higher offers than bids

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Hildred

7 months ago

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

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Veronika

7 months 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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Dottie

6 months ago

Tomoko: Exactly, that's how they make a profit.

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Sophia

7 months ago

So, the correct statement is that price-makers buy low and sell high.

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Tomoko

7 months ago

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

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Elroy

7 months ago

I agree, option B doesn't make sense.

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Ilene

7 months ago

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

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