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Some theory ques regarding exam

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Some theory ques regarding exam

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 13, 2021 at 12:23 pm #635656
    noobmaster69
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    Hello , Mr Jhon sir..
    As you know we just had our FM exam and i felt the theory part a bit hard so i posted these ques in fm exam poll to see whether i choose the correct ans or not..But someone suggested i ask u so we all could know how many of them were correct .Please can u help u ?

    I dont remember alot but some of the ques were

    1.What role would money market have in LC arrangement?
    a)issuing of bankers acceptances
    b)initial arrangement of lc
    c)acceptance of LC
    d)discounting the banker’s acceptance

    2.Function of stock maket?
    a)smooth share price fluctuaations
    b)facilitate trading of commercial paper of public companies
    c)determine fair price for assets
    d)facilitate trading of issued shares of public company

    3.Two value for money objective for Not for profit orgnization
    a)reduce administrative expn
    b)publish financial results to attract more funds
    c)increase tution fees
    d)investing in information tech to provide facilities for more students

    4.according to interest rate parity theory which two (sec B que)
    a)increase in dollor proceeds from euro invoice
    b)compensatory increase in dollar inflation rate
    c)devaluation of dollar in relation to the euro
    d)opportunities to make arbitrage gains on foreign exchange transaction

    5.disadvantage of currency future contract (sec B )( choose as many as correct)
    a)contract may not exactly match the transaction being hedged
    b)future contract has to be exercised on a specific date
    c)outcome f currency future hedge not precisely known due to basic risk
    d)contract is inflexible & doesnot allow hedging company to take advantage of favourable
    exchange rate movement

    6.not an element of Working capital
    a)trade credit
    b)cash
    c)sales
    d)inventory

    September 13, 2021 at 4:43 pm #635681
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54711
    • ☆☆☆☆☆

    I am not going to comment on the exam because I have not seen the paper, and anyway the answers to all these questions are covered in my free lectures.

    It is too late to worry about it now anyway because nothing is going to change the marks. I know many people seem to like to try and work out in advance how many marks they will have got, but that never works. Always so many are sure that they have failed but end up having passed, and others are certain they will have passed and end up having failed.

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