CMFAS CM-EIP – Capital Markets – Excluded Investment Products – Securities, Collective Investment Schemes (EIP) and Foreign Exchange Free Sample Paper: Chapter 7: Deposits and Fixed-Income Securities Topic Preview

Q: Are these CMFAS CM-EIP – Capital Markets – Excluded Investment Products – Securities, Collective Investment Schemes (EIP) and Foreign Exchange questions based on the current examinable source?

Yes. They are checked against the course's recorded current examinable source and official IBF examination information.

Q: How similar is this sample paper to the real CMFAS CM-EIP – Capital Markets – Excluded Investment Products – Securities, Collective Investment Schemes (EIP) and Foreign Exchange exam?

These questions preview the practice style available in the course, but they cover only Chapter 7: Deposits and Fixed-Income Securities. This is not a full mock exam and the result cannot measure your overall exam readiness.

Q: What does my CMFAS CM-EIP – Capital Markets – Excluded Investment Products – Securities, Collective Investment Schemes (EIP) and Foreign Exchange topic-preview score mean?

It reflects only your answers to 15 questions from Chapter 7: Deposits and Fixed-Income Securities. Other syllabus areas are not tested here, so the score is not a pass or fail result and should not be used to predict your official exam performance.

Q: Can I retake this free topic preview?

Yes. You can retake these 15 questions, but repeated attempts cover the same topic. The full course unlocks all 450 practice questions and broader mock-exam practice.

Question 1

Which statement accurately describes Certificate of deposit in CM-EIP Chapter 7?

Accepted Answer

A certificate of deposit is a negotiable or non-negotiable bank deposit instrument with a stated maturity and return.

Answer

A Treasury bill is a short-term government instrument normally issued at a discount and redeemed at face value.

Answer

The source states aggregate protection of up to S$100,000 per depositor per scheme member for insured deposits, effective from April 2024, subject to scheme rules.

Answer

Commercial paper is an unsecured short-term corporate debt instrument whose credit quality depends on the issuer.

Question 2

Which statement accurately describes Treasury bill in CM-EIP Chapter 7?

Accepted Answer

A Treasury bill is a short-term government instrument normally issued at a discount and redeemed at face value.

Answer

Commercial paper is an unsecured short-term corporate debt instrument whose credit quality depends on the issuer.

Answer

A certificate of deposit is a negotiable or non-negotiable bank deposit instrument with a stated maturity and return.

Answer

A banker's acceptance is a time draft accepted by a bank, making the bank primarily liable at maturity.

Question 3

Which statement accurately describes Commercial paper in CM-EIP Chapter 7?

Accepted Answer

Commercial paper is an unsecured short-term corporate debt instrument whose credit quality depends on the issuer.

Answer

A banker's acceptance is a time draft accepted by a bank, making the bank primarily liable at maturity.

Answer

A Treasury bill is a short-term government instrument normally issued at a discount and redeemed at face value.

Answer

The coupon is the contractual periodic interest payment, usually stated as a percentage of face value.

Question 4

Which statement accurately describes Banker's acceptance in CM-EIP Chapter 7?

Accepted Answer

A banker's acceptance is a time draft accepted by a bank, making the bank primarily liable at maturity.

Answer

The coupon is the contractual periodic interest payment, usually stated as a percentage of face value.

Answer

Commercial paper is an unsecured short-term corporate debt instrument whose credit quality depends on the issuer.

Answer

Face or par value is the principal amount used to calculate contractual coupon payments and normally repaid at maturity.

Question 5

Which statement accurately describes Bond coupon in CM-EIP Chapter 7?

Accepted Answer

The coupon is the contractual periodic interest payment, usually stated as a percentage of face value.

Answer

Face or par value is the principal amount used to calculate contractual coupon payments and normally repaid at maturity.

Answer

A banker's acceptance is a time draft accepted by a bank, making the bank primarily liable at maturity.

Answer

The clean price excludes accrued interest, while the dirty price includes accrued interest payable on settlement.

Question 6

Which statement accurately describes Face value in CM-EIP Chapter 7?

Accepted Answer

Face or par value is the principal amount used to calculate contractual coupon payments and normally repaid at maturity.

Answer

The clean price excludes accrued interest, while the dirty price includes accrued interest payable on settlement.

Answer

The coupon is the contractual periodic interest payment, usually stated as a percentage of face value.

Answer

A government bond is issued by a sovereign or government body; it may have low default risk in its own currency but still carries market and inflation risk.

Question 7

Which statement accurately describes Clean price in CM-EIP Chapter 7?

Accepted Answer

The clean price excludes accrued interest, while the dirty price includes accrued interest payable on settlement.

Answer

A government bond is issued by a sovereign or government body; it may have low default risk in its own currency but still carries market and inflation risk.

Answer

Face or par value is the principal amount used to calculate contractual coupon payments and normally repaid at maturity.

Answer

A corporate bond is issued by a company and normally offers a credit spread over a comparable lower-risk benchmark.

Question 8

Which statement accurately describes Government bond in CM-EIP Chapter 7?

Accepted Answer

A government bond is issued by a sovereign or government body; it may have low default risk in its own currency but still carries market and inflation risk.

Answer

A corporate bond is issued by a company and normally offers a credit spread over a comparable lower-risk benchmark.

Answer

The clean price excludes accrued interest, while the dirty price includes accrued interest payable on settlement.

Answer

The source treats ratings below triple-B as high-yield or junk; always follow the rating scale and boundary stated in the question.

Question 9

Which statement accurately describes Corporate bond in CM-EIP Chapter 7?

Accepted Answer

A corporate bond is issued by a company and normally offers a credit spread over a comparable lower-risk benchmark.

Answer

The source treats ratings below triple-B as high-yield or junk; always follow the rating scale and boundary stated in the question.

Answer

A government bond is issued by a sovereign or government body; it may have low default risk in its own currency but still carries market and inflation risk.

Answer

An ABS is serviced by cash flows from a pool of underlying financial assets and exposes investors to the structure and collateral performance.

Question 10

Which statement accurately describes Investment-grade boundary in CM-EIP Chapter 7?

Accepted Answer

The source treats ratings below triple-B as high-yield or junk; always follow the rating scale and boundary stated in the question.

Answer

An ABS is serviced by cash flows from a pool of underlying financial assets and exposes investors to the structure and collateral performance.

Answer

A corporate bond is issued by a company and normally offers a credit spread over a comparable lower-risk benchmark.

Answer

An MBS is backed by mortgage cash flows and is exposed to prepayment and extension behaviour as interest rates change.

Question 11

Which statement accurately describes Asset-backed security in CM-EIP Chapter 7?

Accepted Answer

An ABS is serviced by cash flows from a pool of underlying financial assets and exposes investors to the structure and collateral performance.

Answer

An MBS is backed by mortgage cash flows and is exposed to prepayment and extension behaviour as interest rates change.

Answer

The source treats ratings below triple-B as high-yield or junk; always follow the rating scale and boundary stated in the question.

Answer

Credit spread is the yield difference over a benchmark that compensates for credit and liquidity risks and can widen when perceived risk rises.

Question 12

Which statement accurately describes Mortgage-backed security in CM-EIP Chapter 7?

Accepted Answer

An MBS is backed by mortgage cash flows and is exposed to prepayment and extension behaviour as interest rates change.

Answer

Credit spread is the yield difference over a benchmark that compensates for credit and liquidity risks and can widen when perceived risk rises.

Answer

An ABS is serviced by cash flows from a pool of underlying financial assets and exposes investors to the structure and collateral performance.

Answer

Bond prices ordinarily fall when required yields rise and rise when required yields fall, all else equal.

Question 13

Case Study 2 (1 of 3). A client is comparing bonds with a diversified portfolio and pooled investment vehicles for a medium-term objective. Which statement accurately describes Singapore Deposit Insurance Scheme in CM-EIP Chapter 7?

Accepted Answer

The source states aggregate protection of up to S$100,000 per depositor per scheme member for insured deposits, effective from April 2024, subject to scheme rules.

Answer

A certificate of deposit is a negotiable or non-negotiable bank deposit instrument with a stated maturity and return.

Answer

A convertible bond gives the holder the right to convert into a stated number of shares and combines bond value with an equity option.

Answer

A Treasury bill is a short-term government instrument normally issued at a discount and redeemed at face value.

Question 14

An investor is comparing deposits and fixed-income securities involving Interest-rate risk. Which interpretation is consistent with the CM-EIP source?

Accepted Answer

Bond prices ordinarily fall when required yields rise and rise when required yields fall, all else equal.

Answer

Reinvestment risk is the risk that interim cash flows must be reinvested at lower rates than originally assumed.

Answer

Credit spread is the yield difference over a benchmark that compensates for credit and liquidity risks and can widen when perceived risk rises.

Answer

Call risk arises when the issuer can redeem early, often when market rates fall, limiting price appreciation and increasing reinvestment risk.

Question 15

An investor is comparing deposits and fixed-income securities involving Reinvestment risk. Which interpretation is consistent with the CM-EIP source?

Accepted Answer

Reinvestment risk is the risk that interim cash flows must be reinvested at lower rates than originally assumed.

Answer

Call risk arises when the issuer can redeem early, often when market rates fall, limiting price appreciation and increasing reinvestment risk.

Answer

Bond prices ordinarily fall when required yields rise and rise when required yields fall, all else equal.

Answer

YTM is the discount rate equating a bond's price with the present value of promised cash flows if held to maturity and paid as promised.

CMFAS CM-EIP – Capital Markets – Excluded Investment Products – Securities, Collective Investment Schemes (EIP) and Foreign Exchange Free Sample Paper & Practice Questions

Which statement accurately describes Certificate of deposit in CM-EIP Chapter 7?

CMFAS CM-EIP – Capital Markets – Excluded Investment Products – Securities, Collective Investment Schemes (EIP) and Foreign Exchange

About This Free Sample Paper

Why Use a Question Bank & Mock Exams?

Frequently Asked Questions

Pass on Your First Attempt

CMFAS CM-EIP – Capital Markets – Excluded Investment Products – Securities, Collective Investment Schemes (EIP) and Foreign Exchange Free Sample Paper & Practice Questions

Which statement accurately describes Certificate of deposit in CM-EIP Chapter 7?

CMFAS CM-EIP – Capital Markets – Excluded Investment Products – Securities, Collective Investment Schemes (EIP) and Foreign Exchange

Unlock 20% Discount

About This Free Sample Paper

Why Use a Question Bank & Mock Exams?

Frequently Asked Questions

Pass on Your First Attempt

Try Before You Buy