Question 1

When an employee executes a personal trade in advance of a client's or institution's order to benefit from the anticipated movement in the market price following the execution of a large trade, it is called:

Options :

A : forward-facing

B :

insider dealing

C : front running

D : ex ante trading

Answer: C

Question 2

What is the meaning of CCP within the Basel framework?

Options :

A : Collateralized Clearing Process

B : Collateralized Counterparty Protection

C : Central Clearing Counterparty

D : Collateralized Credit Protection

Answer: C

Question 3

When a broker needs to switch a name this should be done:

Options :

A : only after approval by the broker-s senior management

B : only if the switching transaction is done at the current market rate

C : only after consultation with the local regulator

D : only provided that such transactions are identified as switching transactions

Answer: D

Question 4

If EUR/USD is 1.1025-28 and the 6-month swap is 112.50/113, what is the 6-month outright price?

Options :

A : 1.11375-1.1141

B : 1.09125-1.0915

C : None of these

D : 1.1380-1.11405

Answer: A

Question 5

Which of the following are transferable instruments?

Options :

A : US Treasury bill

B : Eurocertificate of deposit

C : CP

D : All of the above

Answer: D