3I0-012 Exam Questions

What does the Model Code recommend in respect of prices and orders made on electronic trading platforms?

Which of the following statements best describes the conditions under which a prime broker may accept a trade given up?

Claims should be communicated in writing via e-mail or preferably by authenticated SWIFT. What information should be provided in the claim?

You and a dealer at another bank have a verbal bilateral reciprocal arrangement to quote each other two-way prices. During periods of high volatility, the other dealer refuses to q...

What does the Model Code say about omitting the "big figure" in voice communication?

Which of the following risks is best mitigated by CLS?

When differences in payment arise because of errors in the payment of funds:

The Model Code stipulates that you have a right to qualify your quotes in terms of amounts:

As regards controls, which of the following best practices for counterparty identification is incorrect?

What does the Model Code say concerning repos and stock-lending?

What should be done when a voice broker hits a dealer's price as "done" at the very instant the dealer calls "off"?

Which of the following does the Model Code not recommend to prevent technical errors by etrading devices?

In trade confirmation, which one of the following statements about "matching" is correct?

If several banks hit a broker simultaneously for an amount greater than the amount for which the price was shown:

According the Model Code, a principal, whose name has been rejected, feeling that the broker may have actually quoted a price or rate that it could not in fact substantiate, may:

What kind of information should dealers and brokers take care when relaying?

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

Which of the following dealing strategies involves the placing of orders with very short quote lives into a market?

A 3-month (90-day) NZD deposit is 2.75% and 6-month (180-day) NZD deposit is 3.00%. What is the 3x6 NZD deposit rate?

What is the name of the reference against which most USD and JPY deposits and loans are fixed in London?

You borrow GBP 2,500,000.00 at 0.625% for 165 days. How much do you repay including interest?

The columns below list short-term cash rates on 3rd April and 3rd F1ay 3rd April 3rd May Describe the shape of the short-term segment of the yield curve on 3' April using market te...

7-day USCP is quoted at a rate of discount of 1.75%. What is its true yield?

You have quoted your customer the following CAD deposit rates: 1M 1.00-05% 2M 1.06-11% 3M 1.13-18% The customer says, "I give you CAD 20,000,000.00 in the two's". What have you don...

Which of the following may pay a return as a mix of income and capital/gain loss?

Which of the following is not transferable?

What happens when the issuer of a bond being used as collateral in a classic repo fails to pay a coupon on the bond during the term of the repo?

What is the Repurchase Price of a classic repo?

A CD with a face value of USD 50,000,000.00 and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the ca...

You buy a 181-day 2.75% CD with a face value of USD 1,500,000.00 at par when it is issued. You sell it in the secondary market after 150 days at 2.60%. What is your holding period...

The Interest Rate Parity Theorem should work because, when one sells a low interest rate currency to invest in a high interest rate currency and hedges the currency risk:

Which one of the following bullion coins has a 999.9/1000 gold purity (.9999 fineness)?

What is the Gold Offered Forward Rate (GOFO)?

For which country's currency is SEK the ISO code?

3-month USD/CHF is quoted at 12/10. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate...

What is the ISO code for the Indian rupee?

Cable is quoted at 1.5575-80 and you say "5 yours!" to the broker. What have you done?

What is the result of combining a 1-month buy and sell FX swap with a 2-month sell and buy FX swap?

USD/CHF is quoted to you at 0.9290-93 and GBP/USD at 1.5320-30. At what rate could you buy GBP and sell CHF?

Your GBP/CHF rate is 1.3710-15. How many GBP would your customer have to give you to buy CHF 10,000,000.00?

Using the following rates: Spot GBP/CHF 1.4235-55 Spot CHF/SEK 6.8815-45 3M GBP/SEK swap 140/150 What is the price for 3-month outright GBP/SEK?

If GBP/USD is quoted to you at 1.6120-30, how much GBP would you receive if you sold USD 2,000,000.00?

Today is Monday, 8th December. You sell a 9x12 USD FRA for value Thursday, 10th September next year. On what date is the settlement amount due to be paid or received (assuming that...

You are paying 1,00% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10,000,000.00 interest rate swap with exactly two years to maturity. 6-month LIBOR for the ne...

How would you delta hedge a deeply "in-the-money" short put option?

An interest rate guarantee (IRG) is:

Which of the following statements is correct?

The Liquidity Coverage Ratio imposed by Basel III requires a bank:

Does the slope of the interest yield curve typically have a substantial impact on a bank's net interest margin?

A purchased 3X6 FRA should be reported in a gap report as