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A dealer, seeking to refinance a money market short position in USD, could choose to:
Today is Monday, 8 December. You sell a 9x12 FRA in EUR. When will the settlement amount be paid or received, assuming that there are no bank holidays?
As regards controls, which of the following best practices for counterparty identification is incorrect?
When completing a nostro reconciliation, what does an unresolved ledger debit signify?
A UK Treasury Bill has 91 days to maturity. Its redemption value is GBP 100,000.00, What is the purchase price of this bill using a discount rate of 1,25% per annum?
A bank responsible for making due payments of principal and interest on a bond is called the
On 15 April 2010 you buy a bond whose coupon falls on 15 January 2010. The interest basis is 30/360. Using bond settlement T+1, how many days do you apply for the interest calculation?
Your money market dealer has accepted a deposit of NOK 10,000,000.00 at 2.375% for 12 months (365 days). How much will you have to pay back in capital plus accrued interest at maturity?
What are the consequences for credit risk when a collateral agreement is added to a netting agreement?
Today is Friday, 28 July. Considering that there is a bank holiday in Switzerland on Tuesday, 1 August, what is the value date of a money market deal in CHF?
Which of the following is considered a good practice in trade confirmation?
Which of the following statements about operational risk awareness is correct?
The risk that an institution will experience a loss on a trade or a position due to an adverse exchange/interest rate movement is best described as:
Regarding access to production systems, which of the following is incorrect?
If a GBP/CHF trade is made on the spot foreign exchange market on Tuesday, when will the two currencies be settled if tomorrow (Wednesday) is a bank holiday in the U.K.?
Open position and exchange risk management by currency belongs to which treasury system module?
By what means should a financial institution preferably submit SSI changes and notifications to its clients?
What is a bank required to do when entering into a new business relationship with a natural person?
What is the rate of interest paid by the European Central Bank on cash amounts exceeding the minimum reserve requirement (excess reserves)?
If today is Wednesday, what are the value days of a spot next money market deal assuming there are no intervening bank holidays?
When should discrepancies between front-office and back-office systems be resolved?
Which of the following is the primary responsibility of an Operations Department?
If a money market dealer considers placing a given amount at another bank, he must first of all check:
Your dealer bought a 6x9 USD 4,000,000.00 FRA at 0.75%. Settlement is now due and 3 months (90 days) USD LIBOR is 0.40%. What amount do you pay or receive?
What are the ISO codes for the Canadian Dollar, the Singapore Dollar, the South African Rand and the Swiss Franc (though not necessarily in that order)?
The discount or premium on forward foreign exchange points is calculated based on:
Which of the following is required for institutions acting as prime brokers?
With regard to operational risk awareness, which of the following best practices is incorrect?
A large corporate client sends you a case of expensive wine as a reward for settling a compensation case in their favor. What should you do?
Experience has shown that recourse to taped telephone conversations proves invaluable to the speedy resolution of disputes. Therefore, the Model Code recommends:
You are in the pub with a friend who works for another financial institution. The friend asks you for information about a mutual customer's forward foreign exchange dealing volumes. What should you do?
Your bank purchases a FRA at 0.75% in USD. Under what conditions will you pay a cash settlement?
Which of the following is an example of a foreign currency nostro account from the perspective of a bank in London?
Which of the following is essential for the effective and timely execution of outward payments?
You receive a trade to process with counterparty settlement instructions that differ from those you hold on your standard settlement instruction file (SSI).
A dealer makes the following deals in EUR/USD:
Sells EUR 1,500,000.00 at 1.3560
Buys EUR 3,250,000.00 at 1.3542
Sells USD 2,709,600.00 at 1.3548
Buys USD 1,762,410.00 at 1.3557
What is the dealer's position as a result of these trades?
You spot a rate discrepancy between you and your counterparty on a AUD/USD deal. The deal was traded direct. You refer the discrepancy to the dealer and he tells you to change the rate.
What should you do?
You request use of funds from your agent bank for 1 day on an amount of EUR 100,000,000.00, EONIA was 0.812% and the ECB deposit facility rate is 0.50%. What use of funds settlement amount should you expect?
A Luxembourg based bank, which regularly buys American securities for its customers, will preferably:
The control failings involving Barings and Daiwa highlight the critical importance of what operational risk management practice?
Which is the most accurate definition of Euro Commercial Paper - "Short-term promissory notes issued in bearer form with a maturity of ..."
A yield curve can be drawn for a wide variety of financial instruments. The most widely analyzed yield curves are those for benchmark instruments such as:
How would you denote that EUR funds are to be paid via TARGET2 on a typical MT 202 message?
The effective Euro overnight reference rate, computed as a weighted average of ail overnight unsecured lending transactions undertaken in the interbank market and computed with the help of the European Central Bank, is called:
A corporate client instructs you to make a USD payment to his account in London. What two message types should you send?
Which combination of risks: market risk, settlement risk, basis risk, counterparty risk, is associated with a forward FX deal?
Your dealers have made the following deals in spot USD/JPY:
Sold USD 5,000,000.00 at 93.60
Bought USD 3,500,000.00 at 93.20
Bought USD 2,000,000.00 at 93.50
Sold USD 2,000,000.00 at 93.55
What is your position?
A USD 1,0000,000.00 US Treasury Bill (91 days) is offered at a discount rate of 0.75%. The offer price will be:
What payment system has to be used for all payments involving the Eurosystem?
In the unexpected event that a public holiday is declared on the date a particular contract matures, what is the normal market practice?
The prompt sending and checking of confirmations is considered a best practice when dealing in:
Which one of the following statements regarding the segregation of duties in the confirmation process is incorrect?
Which of the following best describes the main benefit of the RTGS payment system?
In a scenario where long-term interest rates are higher than short-term interest rates, the yield curve would best be described as:
What needs to be done in the event that a trade is amended by one or both parties?
On Friday, your trader lends GBP 10,000,000.00 overnight at 0.60%. The instructions are for repayment of principal + interest. How much would you expect to be repaid?
What information is not explicitly confirmed between the two counterparties of a FX swap transaction using a MT 300?
Which of the following is a fundamental element or module in the “securities dealing and processing” part of a treasury system?
A month ago, a customer placed NZD 100,000.00 at 2.00% on a time deposit for 90 days. Today,
30 days later, he requests an anticipated close of his deposit. 2 and 3 month interbank rates are
2.10% bid and 2.20% offered. What do you do?
In the absence of his normal dealer contact, a counterparty calls the back office and asks the clerk for his opinion about how long his money should be placed on deposit. What action should the back office clerk take?
You have five outstanding amounts with five different values. Which of the following should be investigated first?
TESTED 12 Sep 2025