Question 1

Where answer phone equipment is used for reporting and recording of off-premises transactions, it should be:

Options :

A : Secured so that reported transactions cannot be erased without senior management approval.

B : Secured by recordings that are stored for a suitable period.

C : On a number located in the office of the internal auditor.

D : On an special number known only to the chief dealer.

Answer: A

Question 2

You have quoted a Swiss customer spot USD/CHF as 1.3710-15, but he asks you to quote it as CHF/USD.What do you quote?

Options :

A : 1.3710-15

B : 0.7294-91

C : 0.7291-94

D : None of these

Answer: C

Question 3

What usually happens to the collateral in a tri-party repo?

Options :

A : It is held by the seller in the name of the buyer

B : It is held by the tn-party agent in the name of the buyer

C : It is put at the disposal of the buyer

D : It is frozen in the sellers account with the tri-panty agent

Answer: B

Question 4

What is the effect of netting?

Options :

A : To reduce the size of the balance sheet

B :

To reduce the number and size of payments and transfers

C : All of the above

D : To reduce exposure to credit risk

Answer: C

Question 5

When quoting the exchange rate between the USD and AUDI which is conventionally the base currency?

Options :

A : AUD

B : USD

C : Depends on whether the price is being quoted in Australia or the US

D : Depends on whether the price is being quoted interbank or to a customer

Answer: A