Question 1

Which of the following is the best description of a broken trade”?

Options :

A : When a trade has been agreed to with dates (maturities) different from the standard dates

B : When one of the parties to the deal unilaterally decides to withdraw from the on-going transaction

C : When, due to a system break, one or both parties to the deal chooses to withdraw from the ongoing transaction

D : When, due to a system break, one or both parties to the deal are unclear as to whether the deal has been done

Answer: D

Question 2

A corporate client instructs you to make a USD payment to his account in London. What two message types should you send?

Options :

A : MT 202 and MT 103

B : MT 202 and MT 210

C : MT 200 and MT 103

D : MT 103 and MT 210

Answer: A

Question 3

Settlement prices on futures contracts are

Options :

A : official prices calculated by the exchange at the close of trading for the purpose of making margin calculations

B : official prices calculated by a panel of central banks

C : official prices calculated by the central bank where the stock exchange is located

D : never used

Answer: A

Question 4

Which SWIFT message formats would you use for a foreign exchange confirmation and fixed money market confirmation, respectively?

Options :

A : MT 400, MT 950

B : MT 200, MT 100

C : MT 300, MT 950

D : MT 300, MT 320

Answer: D

Question 5

What is a settlement date?

Options :

A : The date by which the interest payment on an operation must be made

B : The last date by which the minimum reserve amount can be paid to the central bank

C : The date, on which settlement must be made on the contracted amount or the differential amount of an operation

D : The date a deal is processed

Answer: C