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When is the final cut-off time for settlement payment orders using the Fedwire Funds Service?

A.

17:30 (5:30 p.m.) Eastern Time (ET)

B.

18:00 (6:00 p.m.) Eastern Time (ET)

C.

18:30 (6:30 p.m.) Eastern Time (ET)

D.

19:00 (7:00 p.m.) Eastern Time (ET)

A Luxembourg based bank, which regularly buys American securities for its customers, will preferably:

A.

Buy the American securities directly on the NYSE

B.

Open a bank account in the United States

C.

Open an account in a bank in the U.S. that has an account at the NYSE

D.

Buy the securities directly in Luxembourg

Herstatt Risk is also known as:

A.

Settlement risk

B.

Translation risk

C.

Replacement risk

D.

Operational risk

How would you denote that EUR funds are to be paid via TARGET2 on a typical MT 202 message?

A.

There is no need to note this separately as payments via TARGET2 are made only in EUR.

B.

The code word "viaTARGET2" is used in field 72 - "Bank to Bank Information".

C.

7/RT" is indicated once in the optional account number field 56A, 57A or 58A.

D.

The code word "TARGET2" is used in the "Pay To Bank" field.

What do FX swap rates represent?

A.

Largely the interest rate differential between two currencies

B.

The price of an option

C.

The expectation of an appreciation of a currency

D.

The volatility of a currency

A collateral pool can be defined as:

A.

Assets lent by members of a payment system collectively available to the system as collateral to enable them to obtain funds in specific circumstances

B.

Liabilities owned by members of a payments system collectively available to the system as collateral to enable them to obtain funds in specific circumstances

C.

Assets owned by members of a payment system collectively available to the system as collateral to enable them to obtain funds in specific circumstances

D.

Assets swapped by members of a payment system collectively available to the system as collateral to enable them to obtain funds in specific circumstances

What static data should an institution's on-boarding procedure include?

A.

SSIs, confirmation methods, global settlement limits, client contacts

B.

SSIs and confirmation methods only

C.

Credit lines and trading limits only

D.

Solely client contacts for the Front Office and Operations

What does a holiday file contain?

A.

It contains all weekends and bank holidays for all currencies held in the currency file

B.

It contains Saturdays, Sundays and domestic bank holidays

C.

It contains a list of deals maturing on a domestic bank holiday

D.

It contains a list of all deals where the maturity date is a weekend

If a bank incurs interest charges from having overdrawn an account due to a late payment from a counterparty:

A.

The bank is entitled to seek reimbursement from the party responsible for the late payment.

B.

Nothing can be done to compensate the bank for the interest charges it incurs.

C.

The bank should file a complaint with ACI’s Committee for Professionalism.

D.

The bank will automatically be reimbursed by the party responsible for the late payment.

The process used to disguise the trail of laundered funds within the financial system is known as:

A.

Streamlining

B.

Layering

C.

Reinvesting

D.

Channeling