100+ Free SAIFM RPE Money Market Practice Questions

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2026 Statistics

Key Facts: SAIFM RPE Money Market Exam

70%

Competency Pass Mark

SAIFM RPE Standards

Exam Multiple-Choice Questions

SAIFM Exam Blueprint

1 Hour

Time Limit (60 Mins)

Virtual Exam Centre

R3 090

Exam Fee (incl. VAT)

SAIFM Fee Schedule 2026

CBT

Delivery Format

Virtual Exam Centre

Actual/365

SA Day-Count Convention

SA Financial Market Practice

7-Day Repo

SARB Main Policy Instrument

South African Reserve Bank

3% - 6%

SARB Inflation Target Range

SARB Monetary Policy

The SAIFM RPE Money Market exam assesses candidate knowledge of South African short-term debt instruments, day-count conventions (Actual/365), yield calculations, SARB repo rate operations, SAMOS settlement, and money market derivatives with a 70% pass mark.

Sample SAIFM RPE Money Market Practice Questions

Try these sample questions to test your SAIFM RPE Money Market exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the standard day-count convention used for short-term money market calculations in South Africa?

A.Actual/365

B.Actual/360

C.30/360

D.Actual/Actual

Explanation: In South Africa, the standard day-count convention for money market instruments including Treasury Bills, NCDs, and repos is Actual/365. This contrasts with international money markets such as the US dollar market which primarily utilize Actual/360. Using Actual/365 ensures interest calculations reflect the exact number of calendar days over a 365-day year.

2Which institution serves as the primary regulator of interbank money market liquidity and issuer of legal tender in South Africa?

A.South African Reserve Bank (SARB)

B.Financial Sector Conduct Authority (FSCA)

C.JSE Limited

D.National Treasury

Explanation: The South African Reserve Bank (SARB) is the central bank of South Africa responsible for formulating and implementing monetary policy, managing interbank money market liquidity, and issuing banknotes and coin. While National Treasury manages fiscal policy and debt issuance, SARB controls short-term liquidity through its refinancing repo operations.

3South African Treasury Bills (T-Bills) are issued on behalf of National Treasury by which entity?

A.South African Reserve Bank (SARB)

B.Development Bank of Southern Africa (DBSA)

C.JSE Settlement House

D.Land and Agricultural Development Bank

Explanation: The South African Reserve Bank (SARB) acts as the official fiscal agent for National Treasury, conducting weekly tender auctions to issue Treasury Bills. Treasury Bills are short-term zero-coupon debt obligations of the South African government used to finance state liquidity requirements.

4What are the four standard maturities for benchmark South African Treasury Bills offered at weekly tenders?

A.91-day, 182-day, 273-day, and 364-day

B.30-day, 60-day, 90-day, and 180-day

C.7-day, 14-day, 21-day, and 28-day

D.1-month, 3-month, 6-month, and 5-year

Explanation: Standard benchmark South African Treasury Bills are auctioned weekly with original maturities of 91 days (approx. 3 months), 182 days (approx. 6 months), 273 days (approx. 9 months), and 364 days (approx. 12 months). These structured maturities provide consistent liquidity benchmarks along the short-term yield curve.

5How do Treasury Bills generate a return for investors despite paying no periodic coupon interest?

A.They are sold at a discount to face value and mature at full face value

B.They pay variable floating dividend payments based on JIBAR

C.They pay inflation-indexed semi-annual interest bonuses

D.They convert into corporate equity shares at maturity

Explanation: Treasury Bills are zero-coupon discount instruments issued below their face value (par). The investor's return is the difference between the discounted purchase price and the full nominal face value received at maturity.

6What does the abbreviation NCD stand for in the context of South African money market banking instruments?

A.Negotiable Certificate of Deposit

B.Non-Collateralized Debt

C.National Credit Deposit

D.Net Capital Distribution

Explanation: NCD stands for Negotiable Certificate of Deposit. It is a transferable interest-bearing security issued by a bank acknowledging a deposit for a fixed term at a specified interest rate, which can be traded in the secondary market prior to maturity.

7Why are Negotiable Certificates of Deposit (NCDs) preferred by institutional investors over traditional fixed bank deposits?

A.They can be traded in the secondary market to provide liquidity before maturity

B.They are guaranteed against default by the International Monetary Fund

C.They are exempt from all South African corporate taxes

D.They pay guaranteed equity dividends linked to JSE stock index gains

Explanation: Unlike standard fixed deposits which lock up funds until maturity, NCDs are negotiable instruments that can be sold in the secondary market to other investors if the holder requires liquidity prior to the maturity date.

8Commercial Paper (CP) issued in the South African money market represents which type of financial debt obligation?

A.Unsecured short-term promissory note issued by high-credit corporations

B.Secured long-term mortgage loan backed by residential property

C.Government bond backed by central bank gold reserves

D.Subordinated perpetual debt issued by microfinance institutions

Explanation: Commercial Paper is an unsecured, short-term promissory note issued by creditworthy corporations to finance immediate operational cash flow needs and short-term working capital requirements.

9In a standard repurchase agreement (repo), what takes place at the initial leg of the transaction?

A.The seller transfers securities to the buyer in exchange for cash

B.The buyer forfeits all rights to receive cash repayment at maturity

C.The securities are permanently canceled and converted into equity shares

D.The central bank seizes the assets without providing funds

Explanation: A repurchase agreement (repo) involves the sale of securities for cash with a simultaneous agreement by the seller to buy back the securities at a specified higher price on a future date. At inception, the seller transfers collateral securities and receives cash.

10What is the primary monetary policy interest rate used by the South African Reserve Bank (SARB) to signal its policy stance?

A.The main 7-day refinancing repo rate

B.The prime overdraft rate

C.The 10-year government bond yield

D.The US Federal Funds rate

Explanation: The main 7-day refinancing repurchase (repo) rate set by the SARB Monetary Policy Committee (MPC) is the official policy benchmark in South Africa. It dictates the cost at which commercial banks borrow liquidity from the central bank.

About the SAIFM RPE Money Market Exam

The SAIFM Registered Person Examination (RPE) Money Market module is the benchmark qualification for short-term interest rate and money market practitioners in South Africa. It covers market structure, South African Treasury Bills, Negotiable Certificates of Deposit (NCDs), Commercial Paper, repurchase agreements (repos), interbank liquidity management via SAMOS, and SARB monetary policy operations.

Assessment

50 multiple-choice questions covering Money Market Structure (20%), Treasury Bills (25%), NCDs and BAs (20%), Commercial Paper & Repos (20%), and Monetary Policy (15%).

Time Limit

1 hour (60 minutes)

Passing Score

70% competency mark

Exam Fee

R3 090 (incl. VAT) (South African Institute of Financial Markets (SAIFM))

SAIFM RPE Money Market Exam Content Outline

20%

Structure and Role of the Money Market

Interbank market structure, role of SARB, SAMOS RTGS settlement, liquid asset requirements (LAR), cash reserve requirements, and key market participants.

25%

Treasury Bills and Short-Term Government Debt

South African Treasury Bills (91, 182, 273, 364 days), weekly tenders, discount pricing, discount rate to money market yield conversions, and settlement mechanics.

20%

Bank Money Market Instruments (NCDs and BAs)

Negotiable Certificates of Deposit (NCDs), fixed and floating rates, Banker's Acceptances (BAs), secondary market trading, and maturity value/yield calculations.

20%

Commercial Paper, Repos and Short-Term Derivatives

Corporate Commercial Paper (CP), repurchase agreements (repos & reverse repos), SARB refinancing repo operations, FRAs, JIBAR, and ZARONIA benchmark interest rates.

15%

Monetary Policy and Interbank Liquidity Management

SARB Monetary Policy Committee (MPC) framework, 3-6% inflation target, repo rate operational transmission, bank liquidity buffer, and standing facilities.

How to Pass the SAIFM RPE Money Market Exam

What You Need to Know

Passing score: 70% competency mark
Assessment: 50 multiple-choice questions covering Money Market Structure (20%), Treasury Bills (25%), NCDs and BAs (20%), Commercial Paper & Repos (20%), and Monetary Policy (15%).
Time limit: 1 hour (60 minutes)
Exam fee: R3 090 (incl. VAT)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

SAIFM RPE Money Market Study Tips from Top Performers

1Remember the South African money market day-count convention is ALWAYS Actual/365, unlike international markets that often use Actual/360.

2To calculate the price of a South African Treasury Bill: Price = Nominal Value × [1 - (Discount Yield × Days to Maturity / 365)].

3To convert a discount yield (d) to a money market yield (y): y = d / [1 - (d × Days / 365)]. Notice that the money market yield is always higher than the discount yield for a given T-Bill.

4Understand the SARB liquidity management framework: the main 7-day repo rate is the primary operational target used by the South African Reserve Bank to manage interbank money market liquidity and signal monetary policy stance.

Frequently Asked Questions

What is the passing score for the SAIFM RPE Money Market exam?

The passing threshold is a 70% competency mark (35 correct answers out of 50 questions).

How long is the exam and how is it delivered?

The exam consists of 50 multiple-choice questions to be completed in 1 hour (60 minutes) via computer-based testing through the Virtual Exam Centre.

What is the fee for the SAIFM RPE Money Market exam in 2026?

The exam registration fee is R3 090 (incl. VAT) per sitting.

What day-count convention is used in the South African money market?

The standard day-count convention for short-term money market instruments and calculations in South Africa is Actual/365 days.

Where can candidates schedule the examination?

Examinations are scheduled online via the official Virtual Exam Centre portal at http://www.virtualexamcentre.co.za/.

Are mathematical calculations required on the exam?

Yes, candidates must be capable of computing Treasury Bill discount prices, converting discount yields to money market yields, calculating NCD interest and maturity values, repo interest amounts, and Forward Rate Agreement (FRA) settlement payouts.

100+ Free SAIFM RPE Money Market Practice Questions

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