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When a deal is done via a broker:

A.

It need not be confirmed between the counterparties as the broker confirms it immediately with both counterparties

B.

It should also be confirmed directly between the two counterparties

C.

It is important to note that broker confirmations are bilateral confirmations between the principals of the trade

D.

The dealer should obtain acknowledgement that the deal has been agreed to but may assume agreement to the trade in the absence of such acknowledgement

In hedging, caps are:

A.

Frequently purchased by issuers of floating rate debt

B.

Frequently sold by issuers of floating rate debt

C.

Frequently sold by issuers having an FX risk

D.

Frequently purchased by issuers having an FX risk

A dealer makes the following deals in EUR/USD:

Sells EUR 1,500,000.00 at 1.3560

Buys EUR 3,250,000.00 at 1.3542

Sells USD 2,709,600.00 at 1.3548

Buys USD 1,762,410.00 at 1.3557

What is the dealer's position as a result of these trades?

A.

Short EUR 2,450,000.00 at 1.3528

B.

Long EUR 2,450,000.00 at 1.3528

C.

Long EUR 2,000,000.00 at 1.3532

D.

Long EUR 2,450,000.00 at 1.3525

A forward rate agreement (FRA) is:

A.

A future rate agreement involving two different currencies

B.

An interest rate agreement where buyer and seller will exchange an interest rate differential at a given date in the future

C.

An interest rate to be applied to a loan or deposit that begins and matures in the future

D.

An agreement to exchange cash flows starting on a specific date in the future

The two main risks to which treasuries are exposed can be grouped into:

A.

Market and loss

B.

Market and money

C.

Market and credit

D.

Market and unavailability

Which of the following is a negotiable instrument?

A.

A fixed time deposit

B.

An on call deposit

C.

A fiduciary deposit

D.

A certificate of deposit

Which is the most accurate definition of Euro Commercial Paper - "Short-term promissory notes issued in bearer form with a maturity of ..."

A.

30 days < 360 days

B.

360 days < 5 years

C.

180 days < 365 days

D.

1 day < 365 days

The abbreviation "FRN" stands for:

A.

Fixed rate notional

B.

Forward rate note

C.

Fixed rate note

D.

Floating rate note

Internal nostro ledger accounts:

A.

Are commonly used to register off-balance sheet movements

B.

Are used to book internal tax related items

C.

Generally mirror the nostro statements

D.

Are reserved for audit and compliance purposes only

What is the maximum term London Certificates of Deposit are issued?

A.

12 months

B.

18 months

C.

5 years

D.

2 years