Bank XYZ calls you for a quote in EUR/USD for EUR 50,000,000.00. If you decide to quote, which of the following is true?

A.

AYou must be prepared to deal EUR 50,000,000.00.

B.

You may quote without stating the amount you are prepared to deal.

C.

You are only committed to deal in a marketable amount.

D.

You must be prepared to deal for more than EUR 50,000,000.00 in case Bank XYZ wishes to.

In the international market, a FRA in USD is usually settled with reference to:

A.

BBA LIBOR

B.

Fed funds

C.

CISDALIBOR

D.

EURIBOR

In order to give a price in EUR/USD, the broker must:

A.

know whether the European Central Bank or the Federal Reserve is in the market before quoting

B.

be sure that the quoting bank’s prices are not shared with other brokers

C.

the price from a bank or a bid and an offer from different banks in order to make a two-way price, because the broker cannot make prices on his own

D.

make sure that the quoting banks have sufficient credit lines

From the following AUD rates:
3M AUD (91-day) deposits 2.35%
3x6 AUD (90-day) FRA 2.55%
Calculate the 6-month implied cash rate.

A.

2.37%

B.

2.46%

C.

2.55%

D.

4.90%

What is the ISO code for silver?

A.

XAU

B.

XAG

C.

XPT

D.

XPD

Under Basel Rules, the Basic Indicator Approach is a regulatory framework for:

A.

liquidity risk

B.

business risk

C.

operational risk

D.

funding risk

When a deal is done via a broker:

A.

it need not be confirmed between the counterparties as the broker confirms it
immediately with both counterparties

B.

it should also be confirmed directly between the two counterparties

C.

it is important to note that broker confirmations are bilateral confirmations between the principals of the trade

D.

the dealer should obtain acknowledgement that the deal has been agreed to but may assume agreement to the trade in the absence of such acknowledgement

What recommendation does the Model Code make to banks accepting a stop-loss order?

A.

The Model Code emphasizes the importance of clear, concise documentation and ongoing lines of communication.

B.

Bank management must guarantee a fixed price execution to the counterparty.

C.

The Model Code recommends that only experienced dealers should be allowed to take such orders.

D.

Bank staff must secure the approval of the counterparty’s management to accept such orders.

For which country’s currency is ZAR the ISO code?

A.

Saudi Arabia

B.

South Africa

C.

Zimbabwe

D.

Zambia

What are the secondary market proceeds of a CD with a face value of EUR 5,000,000.00 and a coupon of 3% that was issued at par for 182 days and is now trading at 3% but with only 7 days remaining to maturity?

A.

EUR 4,997,085.03

B.

EUR 5,000,000.00

C.

EUR 5,071,086.45

D.

EUR 5,072,874.16