3I0-012 Exam Questions

You are the fixed-rate payer in a plain vanilla interest rate swap. If your counterparty defaults, your exposure at default is:

Extended trading hours and off-premises dealing can involve additional hazards, the avoidance of which requires clear controls. The Model Code prescribes best market practice. Whic...

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

Where there are shared management responsibilities or where an investment or shareholding exists in a broker by a counterparty:

Dealers are authorized to deal:

Which of the following statements about "standard settlement instructions" (SSI) is correct?

Which of the following is a Model Code good practice regarding the passing of names?

Three of the following non-EU countries have unilaterally adopted the Euro. Which one has not?

Which of the following is not an officially published settlement or reference rate?

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

Once a prime-broker has matched and accepted a trade, separate confirmations must be exchanged between:

A fixed rate forward/forward non-deliverable deposit/loan transaction, settled in cash with an agreed upon process for calculating the market reference at the commencement of the f...

Convert 8.25% quoted on a semi-annually compounded money market basis for USD to the equivalent annually-compounded bond basis.

Today's date is Thursday 12th December. What is the spot value date? Assume no bank holidays.

Which of the following pays a return in the form of a discount to face value?

Which of the following will tend to have the lowest yield?

Which of the following market participants would least likely be a user of repo?

When quoting the exchange rate between the USD and AUDI which is conventionally the base currency?

The buyer of a USD/ARS NDF could be:

A forward/forward FX swap:

If you have created a `synthetic asset' by buying and selling a USD/CHF swap, what have you done?

If I say that I have "bought and sold" EUR/USD in an FX swap, what have I done?

If EUR/USD is 1.3025-28 and the 6-month swap is 15.50/17, what is the 6-month outright price?

If spot USD/HKD is 7.7600 and USD/SGD is 1.2350, what is SGD/HKD?

If USD/JPY is quoted to you as 98.10-15 and USD/CHF as 0.9294-99, what is the rate at which you can buy CHF against JPY?

The market is quoting: 1-month (31-day) NOK 1.75°k 3-month (91-day) NOK 2.05% What is the 1x3 rate in NOK?

The major difference between FRAs and futures is that FRAs are:

A short USD put/JPY call option:

What is a long strangle option strategy?

If the yield curve is upward sloping, a bank would not profit from:

Issues relating to the bank's liquidity management are commonly discussed in:

Which of the following transactions would have the effect of shortening the average duration of liabilities in the banking book?

What is Funds Transfer Pricing in the ALM process?

Which of the following statements about requirements for dealing with limit violations is correct?

Under Basel Securitization rules the highest potential risk weight is:

You are entering into a swap as a fixed rate receiver with Party A and into an offsetting position with party B. All other things being equal, which of the scenarios below will lea...

Under Basel rules, what is the meaning of RWA?

What does the term "mine" mean when given in response to an FX spot quotation?

Assume the following scenario: Bank A bids for EUR 5,000,000.00 at 1.3592. Bank B offers EUR 10,000,000.00 at 1.3597. Broker XYZ quotes to the market EUR/USD 1.3592/97. Bank C take...

Which of the following correctly states the Model Code's recommendations regarding terms and documentation?

As to general risk management principles, the Model Code mentions that the organizationalstructure should ensure independent risk management and controls. Which one of the followin...

What is the documentation in which the parties agree to the terms that will govern future transactions?

What are de minimis claims?

What is the name of a swap in which the counterparties sell currencies to each other with a concomitant agreement to reverse the exchange of currencies at a fixed date in the futur...

Under what circumstances are banks allowed to "park" deals or positions with a counterparty?

Any breaches in confidentiality should be:

An FX forward outright has been dealt for a value date which is subsequently declared to be a bank holiday. According to the Model Code, the exchange rate for the deal:

Under what conditions can an FX broker act as a position taker?

A prime broker may not reject a trade given up if:

Is gambling or betting between market participants allowed?