The market is quoting:
6-month (182-day) CAD 1.25%
12-month (366-day) CAD 1.55%
What is the 6x12 rate in CAD?

A.

0.300%

B.

0.946%

C.

1.935%

D.

1.835%

Which one of the following statements about interest rate movements is true?

A.

An upward parallel shift of interest rates will cause a loss of income if the rate-sensitivity of a bank’s liabilities is higher than the rate-sensitivity of its assets.

B.

A bank will lose income if it has more rate-sensitive liabilities than rate-sensitive assets.

C.

Falling interest rates will always result in mark-to-market profits on short positions in fixed rate securities.

D.

Rising interest rates can result in mark-to-market losses on fixed-rate assets.

Which of the following is always a secured instrument?

A.

ECP

B.

Repo

C.

Interbank deposit

D.

CD

Which of the following currencies is quoted on an ACT/360 basis in the money market?

A.

SGD

B.

PLN

C.

GBP

D.

NZD

Which of the following does the Model Code mention with regards to recording telephone
conversations?

A.

There is no need to inform new counterparties and clients that conversations will be
recorded.

B.

It is normal practice that tapes and other records should be kept for at least twelve
months.

C.

The periods for which tapes and other records should be retained should reflect the way
in which the terms and conditions of transactions have been agreed, and the duration of
transactions.

D.

Dealers and other staff are reminded that telephones and electronic text messaging
systems in the firm are intended for business and private use and that conversations and
exchanges of text messages should be conducted in a casual manner.

Which party usually takes an initial margin in a classic repo?

A.

The buyer

B.

The seller

C.

Neither

D.

Both

As far as fineness and weight are concerned, what are the London Bullion Market
Association (LBMA) requirements for a “good delivery bar”?

A.

at least 995/1000 pure gold; weight between 350 and 430 fine ounces

B.

minimum 999.9/1000 pure gold; weight between 350 and 430 fine ounces

C.

at least 995/1000 pure gold; weight of 400 fine ounces

D.

minimum 995/1000 pure gold; weight of 400 fine ounces

A 30-day 4% CD with a face value of GBP 20,000,000.00 is trading in the secondary
market with 20 days remaining to maturity at 4.05%.
What would be your holding period yield if you bought the CD now and held it to maturity?

A.

4.05%

B.

4.0%

C.

3.891%

D.

3.838%

Which of the following is not a negotiable instrument?

A.

CD

B.

FRA

C.

BA

D.

ECP

An ‘at-the-money’ option has:

A.

Intrinsic value but no time value

B.

Time value but no intrinsic value

C.

Both time value and intrinsic value

D.

Neither time value nor intrinsic value