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Viewing questions 46-60 out of questions
Questions # 46:

When is your settlement risk greatest on a spot FX deal?

Options:
A.

Today

B.

Tomorrow

C.

After you make an irrevocable payment

D.

On the spot value date

Expert Solution
Questions # 47:

If you took a short position in USD/JPY, how could the Fed “squeeze” you?

Options:
A.

Raise USD interest rates

B.

Lower USD interest rates

C.

Lower reserve requirements

D.

It could not squeeze you

Expert Solution
Questions # 48:

What is an outright forward FX transaction?

Options:
A.

A spot sale (purchase) and a forward purchase (sale)

B.

A spot sale (purchase) and a forward sale (purchase)

C.

An exchange of currencies on a date beyond spot and at a price fixed today

D.

An exchange of currencies on a date beyond spot

Expert Solution
Questions # 49:

Which of the following statements with respect to trading and broking ethics through the use of technology is the correct quote from the Model Code?

Options:
A.

Deliberate attempts at gaming and abuse using the flashing of orders without the intent to deal should be classified as proprietary trades.

B.

Management should ensure that the complete e-trading process, from pricing to risk impact through to settlement, conforms to recognized standards and market conventions.

C.

All bid-offers presented to electronic platforms should remain in the Matching System for no more than the minimum period of time defined within their respective Minimum Quote Life (MQL) rules.

D.

Trades which occur at off-market rates, by agreement between the two counterparts and as soon as practically possible, should stand and any profit be equitably divided between them.

Expert Solution
Questions # 50:

Which of the following will tend to have the higher yield?

Options:
A.

Treasury bill

B.

Repo against Treasury bill collateral

C.

They have the same yield

D.

Cannot say

Expert Solution
Questions # 51:

If a dealer needs to hedge an over-lent 3x6 position against 1MM dates for which the FRA is quoted 1.30-1.34% and futures at 98.64, which would be cheapest for him (ignoring margin costs on futures positions) to cover his gap?

Options:
A.

FRA

B.

Futures

C.

No difference

D.

Too little information to decide

Expert Solution
Questions # 52:

If making a claim in respect of “use of funds”, payments should be settled within how many days?

Options:
A.

15

B.

20

C.

35

D.

40

Expert Solution
Questions # 53:

You are quoted the following rates:

Spot USD/JPY97.10-15

3M USD/JPY swap 9/6

Spot USD/CHF 0.9320-23

3M USD/CHF swap 11/8

Where can you sell CHF against JPY 3-month outright?

Options:
A.

104.14

B.

104.21

C.

104.23

D.

104.30

Expert Solution
Questions # 54:

Any breaches in confidentiality should be:

Options:
A.

documented and reported to the local regulator

B.

communicated to local staff by a confidential internal circular

C.

investigated immediately according to a properly documented procedure

D.

reported to the ACI’s Committee for Professionalism to investigate and advise accordingly

Expert Solution
Questions # 55:

The outright forward FX rate is not a function of which of the following?

Options:
A.

The interest rates of the two currencies

B.

The spot exchange rate

C.

Thedaycount

D.

Market expectation

Expert Solution
Questions # 56:

What is a hedge?

Options:
A.

A means by which to reduce a risk

B.

An equal and opposite risk

C.

A riskless transaction

D.

A means of cancelling a deal

Expert Solution
Questions # 57:

In the unforeseen event that a particular maturity date is declared a public holiday, what is standard market practice for spot FX?

Options:
A.

to extend the contract to the next business day

B.

to shorten the contract to the previous business day

C.

The two parties involved agree to a new maturity date.

D.

There is no standard market practice. ACIs Committee for Professionalism decides the issue on a case-by-case basis.

Expert Solution
Questions # 58:

You are entering into a swap as a fixed rate receiver with Party A and into an offsetting position with party B. All other things being equal, which of the scenarios below will lead to the greatest increase in the sum of the Credit Value Adjustments for A and B?

Options:
A.

upward shift of the swap curve and rating downgrade of party A

B.

downward shift of the swap curve and rating downgrade of party A

C.

downward shift of the swap curve and rating downgrade of party B

D.

downward shift of the swap curve only

Expert Solution
Questions # 59:

Which one of the following statements about “CLS rescinds” is correct?

Options:
A.

CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 00:00 CET deadline.

B.

CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 06:30 CET deadline.

C.

CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank before the 00:00 CET deadline.

D.

CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank after the 06:30 CET deadline.

Expert Solution
Questions # 60:

You quote your customer EUR/USD 1.3070-73, However they need the rate quoted in EUR per USD. What do you quote?

Options:
A.

1.3073-70

B.

0.7651-49

C.

0.7646-49

D.

0.7649-51

Expert Solution
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