3I0-012 Exam Questions

The major risk to the effectiveness of netting is:

Which of the following methods is a means of credit risk mitigation?

Which of the following scenarios offer an example of wrong way risk?

Which of the following is typical of liquid assets held by banks under prudential requirements?

What is the correct interpretation of a EUR 2,000,000.00 overnight VaR figure with a 97% confidence level?

Hybex Electrics is a highly rated company with a considerable amount of fixed rate liabilities and would like to increase the percentage of floating rate debt. Which of the followi...

Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?

Responsibility for the activities of all personnel engaged in dealing (both dealers and support staff) for both principals and brokers lies with:

Which Greek letter is used to describe the ratio of change in the option price compared with change in the price of the underlying instrument, when all other conditions are fixed?

When banks transact FX swaps, the spot price should be determined:

Which of the following statements is true?

A broker offers a dealer a financial incentive in the form of a price reduction to the previously agreed brokerage arrangements between the firms.

What ought to be done in the event a trade erroneously occurs at an off-market rate?

How long does the Model Code recommend that tapes and other records of dealers/brokers be kept?

What is the meaning of "under reference" in the terminology of trading?

You request use of funds from your agent bank for 1 day on an amount of EUR 100,000,000.00, EONIA was 0.812% and the ECB deposit facility rate is 0.50%. What use of funds settlemen...

If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, the correct value date will be:

How frequently should business contingency procedures be tested and updated?

Which of the following does the Model Code mention with regards to recording telephone conversations?

Regarding access to production systems, which of the following is incorrect?

Which one of the following statements is true?

When do bank participants have a duty to make absolutely clear whether the prices they are quoting are firm or merely indicative?

The use of standard settlement instructions (SSI's) is strongly encouraged because:

Which of the following statements is true concerning dealing and rollovers at non-current rates?

A bank that has quoted a firm price is obliged to deal:

Confirmations of non-prime brokerage deals using CLS should be exchanged:

Your agent bank accepts your back-valuation request for 1 day on an amount of EUR 50,000,000.00. EONIA is 0.375% and the ECB marginal lending facility rate is 1.50%. Applying conve...

A 3-month (91-day) deposit of AUD 25,000,000.00 is made at 3.25%. At maturity, it is rolled over three times at 3.55% for 90 days, 4.15% for 91 days and 4.19% for 89 days. At the e...

Which of the following rates represents the highest investment yield in the Euromarket?

A 3-month (91-day) US Treasury bill is quoted at a rate of discount of 4.25%. What is its true yield?

Today's spot value date is Friday 27th February. What is normally the 1-month maturity date? Assume no bank holidays.

The Market Segmentation hypothesis suggests that the yield curve bends at some point along its length because:

Which of the following is always a secured instrument?

What type of institution is the typical drawer of banker's acceptances?

Which type of repo is the most risky for the buyer?

You have taken 3-month deposits of EUR 10,000,000.00 at 0.60%, EUR 5,000,000.00 at 0.40% and EUR 5,000,000.00 at 0.50%. What is the average rate of your long position?

A 30-day 4% CD with a face value of GBP 20,000,000.00 is trading in the secondary market with 20 days remaining to maturity at 4.05%. What would be your holding period yield if you...

The spot/week repo rate for the 4.25% OAT 2015 is quoted to you at 2.35-38%. You buy bonds with a market value of EUR 3,295,500.00 through a sell/buy-back. The Repurchase Price is:

The two-week repo rate for the 5.25% Bund 2014 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000.00 with no initial margin. You would earn repo inte...

Clients of a voice-broker quote EUR/GBP at 0.8345-50, 0.8346-51, 0.8348-53 and 0.8349-53. What will be the broker's price?

How would you compute the bid side of the forward/forward FX swap points?

What is the ISO code for the Argentine peso?

Automated trading systems for interbank spot FX display the best prices entered into the systems by users and:

What is the ISO code for silver?

What is the ISO code for palladium?

Spot EUR/USD is 1.3050-53 and EUR interest rates are lower than USD interest rates. Would you expect the forward points for EUR/USD to be:

The forward points are calculated using:

If you are trading spot on an ATS (Automated Trading System) and see a price for EUR/USD of 1.3050-53. If you hit the button marked "YOURS", what have you done?

3-month EUR/USD FX swaps are quoted to you at 8/12. If the "points are in your favor", what have you done?

If spot GBP/CHF is quoted 1.4275-80 and the 3-month forward outright is 1.4254-61, what are the forward points?