When can a broker consider a deal to be done?

A.

if he is confident that the dealer will not back out of the deal

B.

if both parties to the deal have established credit lines for each other

C.

if one party to the deal acknowledges interest

D.

if he receives acknowledgement from both the dealers involved

A CD with a face value of USD 50,000,000.00 and a coupon of 4.50% was issued at par for
90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been
the capital gain or loss since issue?

A.

+USD 373,599.00

B.

+USD 186,099.00

C.

-USD 1,400.99

D.

Nil

Your GBP/CHF rate is 1.3710-15. How many GBP would your customer have to give you to buy CHF 10,000,000.00?

A.

7,291,286.91

B.

7,293,946.02

C.

13,710,000.00

D.

13,715,000.00

7-day USCP is quoted at a rate of discount of 1.75%. What is its true yield?

A.

1.73%

B.

1.75%

C.

1.77%

D.

1.80%

Net funding requirements in liquidity management are determined by means of:

A.

adding up expected vault cash outflows, ATMs and other cash points operated by the
institution across all branches

B.

establishing a forward cash flow plan that takes account of all contractual and behavioral
cash flows related to assets and liabilities

C.

the net cash flow from investment activities in the IFRS consolidated Statement of Cash Flows for prior periods

D.

subtracting short-term liabilities from short-term assets

Which one of the following statements about mark-to-model valuation is correct?

A.

Mark-to-model valuation is used for exchange-traded positions to ensure correct pricing.

B.

Asset managers are not allowed to use mark-to-model valuation.

C.

Mark-to-model valuation is used for complex financial instruments; it is always accurate
and in line with potential tradable prices.

D.

Mark-to-model valuation refers to prices determined by financial models, rather than
actual market prices.

The columns below list short-term cash rates on 3rd April and 3rd F1ay 3rd April 3rd May
Describe the shape of the short-term segment of the yield curve on 3’ April using market
terminology. In addition, describe the change in the shape of the curve between 3rd April
and 3rd May.

A.

Positive, steepening

B.

Positive, flattening

C.

Inverted, steepening

D.

Inverted, flattening

Under Basel rules the risk weight for MA-rated claims on corporate in the standardized
approach

A.

0%

B.

15%

C.

20%

D.

75%

Which of the following currencies is quoted on an ACT/365 basis for the calculation of
interest on interbank deposits in London?

A.

EUR

B.

JPY

C.

HKD

D.

AUD

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

A.

South Korea

B.

Sri Lanka

C.

Slovakia

D.

Sweden