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Viewing page 14 out of 15 pages
Viewing questions 196-210 out of questions
Questions # 196:

Which of the following is a Model Code good practice regarding the passing of names?

Options:
A.

Bank dealers should, wherever possible, give brokers prior indication of counterparties with whom they would be unwilling to do business.

B.

Brokers may divulge the names of principals prematurely to induce a counterparty to transact.

C.

Dealers should never give brokers guidance on the extent of their price differentiation across broad categories of counterparties.

D.

When a principal’s name proves unacceptable to another principal, the broker is bound to divulge who refused it.

Expert Solution
Questions # 197:

You are the buyer of protection in a credit default swap. All other things being equal your counterparty credit risk is increasing if:

Options:
A.

the credit spread is decreasing

B.

the credit spread is decreasing and recovery rate is increasing

C.

the credit spread is increasing

D.

the recovery rate is increasing

Expert Solution
Questions # 198:

A customer gives you GBP 25,000,000.00 at 0.625% same day for 7 days.

Through a broker, you place the funds with a bank for the same period at 0.6875%.

Brokerage is charged at 2 basis points per annum.

What is the net profit or loss on the deal?

Options:
A.

ProfitofGBP 299.66

B.

Profit of GBP 203.77

C.

LossofGBP299.66

D.

Loss ofGBP 203.77

Expert Solution
Questions # 199:

You have borrowed at 3-month LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting:

1x3 USD FRA 0.42-45%

1x4 USD FRA 0.54-58%

1x5 USD FRA 0.57-62%

To hedge the next LIBOR fixing, you should:

Options:
A.

Sell a 1x3 FRA at 0.42%

B.

Buy a 1x3 FRA at 0.45%

C.

Buy a 1x4 FRA at 0.58%

D.

Sell a 1x4 FRA at 0.54%

Expert Solution
Questions # 200:

What needs to be done in the event that a trade is amended by one or both parties?

Options:
A.

A new confirmation should be generated by both parties but there is no need to restart the confirmation cycle.

B.

The amending party should verbally inform the other party.

C.

A new confirmation should be generated and the confirmation cycle should restart and continue until the trade is completely matched by both parties.

D.

A new confirmation need not be generated but the confirmation cycle must restart and continue until the trade is completely matched by both parties.

Expert Solution
Questions # 201:

Issues relating to the bank’s liquidity management are commonly discussed in:

Options:
A.

the Asset Liability Management Committee (ALCO)

B.

the Financial Resources and Compensation Committee

C.

the Credit Committee

D.

the Federal Open Market Committee

Expert Solution
Questions # 202:

The market is quoting:

1-month (31-day) NOK 1.75¡ãk

3-month (91-day) NOK 2.05%

What is the 1x3 rate in NOK?

Options:
A.

4.261%

B.

2.202%

C.

1.900%

D.

1.592%

Expert Solution
Questions # 203:

Three of the following non-EU countries have unilaterally adopted the Euro. Which one has not?

Options:
A.

Kosovo

B.

Andorra

C.

Albania

D.

Montenegro

Expert Solution
Questions # 204:

Dealers are authorized to deal:

Options:
A.

anywhere, even away from their own dealing premises

B.

after-hours, but only if listed as such by management

C.

after-hours, but only from their private residence

D.

away from their broker’s dealing premises

Expert Solution
Questions # 205:

You are quoted the following rates:

Spot cable1.5340-43

0/N cable swap0.14/0.11

T/N cable swap0.16/0.13

S/N cable swap0.43/0.37

At what rate can you buy cable for value tomorrow?

Options:
A.

1.534284

B.

1.534316

C.

1.534287

D.

1.534313

Expert Solution
Questions # 206:

If the yield curve is upward sloping, a bank would not profit from:

Options:
A.

borrowing short and lending long

B.

borrowing long and lending short

C.

paying a higher rate on deposits than the market

D.

increasing the banks leverage

Expert Solution
Questions # 207:

What is the purpose of a short straddle option strategy?

Options:
A.

To anticipate lower volatility in the price of the underlying commodity

B.

To anticipate moderately high volatility in the price of the underlying commodity

C.

To anticipate increasing volatility in the price of the underlying commodity

D.

To anticipate very high volatility in the price of the underlying commodity

Expert Solution
Questions # 208:

If you funded your fixed-income investment portfolio with short-term deposits, how would you hedge your interest rate exposure with interest rate swaps?

Options:
A.

Pay fixed and receive floating through swaps for the term of the portfolio

B.

Pay floating and receive fixed through swaps for the term of the portfolio

C.

You cannot: the maturity of the swaps would be longer than that of the deposits

D.

You should not: there would be too much basis risk

Expert Solution
Questions # 209:

Which of the following both provide credit enhancement to a true-sale securitization?

Options:
A.

reserve account and third-party insurance

B.

subordinated tranches and creditworthiness of the originator

C.

creditworthiness of the originator and third-party insurance

D.

reserve account and interest rate hedging

Expert Solution
Questions # 210:

The interest earned on a USD 5,000,000.oo money market deposit for 184 days is USD 12,500.00. What was the interest rate?

Options:
A.

0.470%

B.

0.196%

C.

0.500%

D.

0.169%

Expert Solution
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Viewing questions 196-210 out of questions