You borrow GBP 2,500,000.00 at 0.625% for 165 days. How much do you repay including interest?

A.

GBP 2,507,161.46

B.

GBP 2,507,063.36

C.

GBP 2,507,006.85

D.

GBP 2,507,106.16

You have quoted your customer the following CAD deposit rates:
1M 1.00-05%
2M 1.06-11%
3M 1.13-18%
The customer says, “I give you CAD 20,000,000.00 in the two’s”. What have you done?

A.

Borrowed CAD 20,000,000.00 at 1.06%

B.

Lent CAD 20,000,000.00 at 1.11%

C.

Borrowed CAD 20,000,000.00 at 1.11%

D.

Lent CAD 20,000,000.00 at 1.06%

Which one of the following bullion coins has a 999.9/1000 gold purity (.9999 fineness)?

A.

the Canadian “Maple Leaf”

B.

the South African “Krugerand”

C.

the American “Gold Eagle”

D.

the United Kingdom “Sovereign”

Which of the following statements about the Liquidity Coverage Ratio is correct?

A.

The LCR is a measure to ensure that the reserve of high quality liquid assets is sufficient to cover short term demand for liquidity in a stress situation.

B.

the ratio (cash outflow in a 30-day stress period divided by high quality liquid assets) has to be greater than 100%.

C.

Covered bonds are class 1 assets.

D.

Obligations issued by central banks or government agencies are class 2 assets.

A negative yield curve is one in which:

A.

Longer rates are lower than short rates

B.

Forward exchange rates are at a discount

C.

Short term rates are lower than long

D.

Forward exchange rates are a premium

Which of the following is not transferable?

A.

Euro certificate of deposit

B.

US Treasury bill

C.

CP

D.

Call deposit

Which of the following are all goals of the originator of securitized assets?

A.

to increase funding diversification , to reduce funding costs, to achieve regulatory and
accounting benefits, to increase the size of the balance sheet

B.

to increase funding diversification , to reduce funding costs, to achieve regulatory and
accounting benefits

C.

to increase funding diversification , to reduce operational risk, to achieve regulatory and accounting benefits, to decrease the size of the balance sheet

D.

to increase funding diversification , to reduce operational risk, to achieve regulatory and accounting benefits, to increase the size of the balance sheet

What is the value date of a 6-month outright forward FX transaction dealt today, if today’s
spot date is Monday, 30th June? Assume there are no bank holidays.

A.

27th December

B.

30th December

C.

31st December

D.

1st January

When differences in payment arise because of errors in the payment of funds:

A.

claims should be made for the costs incurred by the injured party and include all administration costs

B.

no party involved can be enforced to contribute to achieve an equitable resolution to the problem

C.

no market participant should be unjustly enriched or injured by the action/error of another market participant

D.

claims are calculated on the full principal amount of the failed payment with the interest rate imposed by the injured party

As regards controls, which of the following best practices for counterparty identification is incorrect?

A.

Amendments to customer standing data should be subject to 4 eyes control and only changed if the appropriately authorized documentation is provided.

B.

The set up of settlement instructions and the confirmation method should be fixed when
setting the first transaction.

C.

No trading should be done without first identifying and setting up the counterparty.

D.

Counterparty identification and setup of settlement instructions should be completed in
less than 2 working days.