Question 1

Which of the following is true regarding the consummation of a deal?

Options :

A : written confirmations always override terms verbally agreed to

B : verbal agreements are considered binding

C : deals agreed to verbally can be done subject to documentation

D : verbal agreements are never to be considered legally binding

Answer: C

Question 2

In a plain vanilla interest rate swap, the fixed-rate payer":"

Options :

A : has established the price sensitivities of a longer-term fixed-rate asset and a floating-rate liability

B : has established the price sensitivities of a longer-term fixed-rate liability and a floating-rate asset

C :

pays floating in the swap

D : receives fixed in the swap

Answer: B

Question 3

Dealers are authorized to deal:

Options :

A :

anywhere, even away from their own dealing premises

B : after-hours, but only from their private residence

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

D : away from their broker-s dealing premises

Answer: C

Question 4

What is the maximum maturity of a US Treasury bill?

Options :

A : 5years

B : 270 days

C : One year

D : 183 days

Answer: C

Question 5

What is the minimum basis on which a BCP should be updated and tested?

Options :

A : Whenever the BCP procedures are changed

B : Every 3 months

C : Every 6 months

D : Yearly

Answer: D