Question 1

You bought a 6x9 EUR 8,000,000.00 FRA at 4.50%. Settlement is now due and 3 months (90 days) EURIBOR is 3.50%. What amount do you pay or receive?

Options :

A : pay EUR 20,000.00

B : receive EUR 20,000.00

C : pay EUR 19,826.52

D : receive EUR 19,826.52

Answer: C

Question 2

What is an essential feature of nostro reconciliations?

Options :

A : That a daily nostro reconciliation report is sent out to the correspondent bank

B :

That they are performed before the next business day

C : That they are performed in a timely and efficient way

D : That open items are booked on an internal account

Answer: C

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

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

Question 5

Under normal circumstances, which of the following is a non-negotiable instrument?

Options :

A : a Medium Term Note

B : a Bankers Acceptance

C : a Money Market Deposit

D : a Treasury Bill

Answer: C

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