Which of the following statements best describes the conditions under which a prime broker may accept a trade given up?

A.

the trade is within the specified tenor limits

B.

the trade is within the tenor limits and is of an applicable trade type

C.

the trade is within the tenor limits and credit limits

D.

the trade is within the tenor limits, credit limits and is of an applicable trade type

Which of the following risks is best mitigated by CLS?

A.

currency risk

B.

operational risk

C.

liquidity risk

D.

settlement risk

What kind of information should dealers and brokers take care when relaying?

A.

Information that could be damaging to a third party

B.

Unsubstantiated rumours

C.

Unsubstantiated information that they suspect may be inaccurate and damaging to a third party

D.

Price-sensitive information

From 2019 on the total capital requirement for banks under Basel III will be defined as:

A.

8of RWA plus conservation buffer

B.

10.5% of RWA plus conservation buffer

C.

8% of RWA plus countercyclical buffer

D.

10.5% of RWA plus countercyclical buffer

What does the Model Code say concerning repos and stock-lending?

A.

Legal documentation must be put in place as soon as possible after transaction.

B.

All market participants should use the Modified Previous Business Day Convention.

C.

The exact maturity (end) dates for transactions must be agreed as soon as possible

D.

All market participants should use the Modified Following Business Day Convention.

A USD deposit traded in London between two German banks is cleared:

A.

Wherever the parties agree

B.

In London

C.

In NewYork

D.

In Frankfurt

Cable is quoted at 1.5575-80 and you say “5 yours!” to the broker. What have you done?

A.

Sold USD 5,000,000.00 at 1.5575

B.

Sold GBP 5,000,000.00 at 1.5575

C.

Bought GBP 5,000,000.00 at 1.5580

D.

Bought USD 5,000,000.00 at 1.5580

How would you delta hedge a deeply “in-the-money” short put option?

A.

Go short of the underlying commodity equal to 50% of the size of the option contract

B.

Go long of the underlying commodity equal to 50% of the size of the option contract

C.

Go long of the underlying commodity equal to more than 50% of the full size of the option contract

D.

Go short of the underlying commodity equal to more than 5O% of the full size of the option contract

Which one of the following statements is incorrect under Basel III?

A.

Instruments qualifying for recognition as Tier 1 or Tier 2 capital will be substantially restricted.

B.

Basel III does not include Tier 3 capital

C.

There is a distinction between upper Tier 2 and lower Tier 2 capital

D.

New non-common equity Tier 1 and Tier 2 instruments are more loss-absorbing than previously

Which of the following may pay a return as a mix of income and capital/gain loss?

A.

CD

B.

Interbank deposit

C.

Classic repo

D.

Treasury bill