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If the EUR/USD is quoted to you as 1.3550-53, what does this price represent?

A.

EUR per USD

B.

USD per EUR

C.

The interest rate differential between EUR and USD

D.

The fact that one USD is worth more than one EUR

Which of the following types of payment cannot be executed in the United States?

A.

Same day value payment in JPY

B.

Same day value payment in EUR

C.

Value tomorrow payment in AUD

D.

Value tomorrow payment in NZD

What is a "tick" in the futures markets?

A.

The maximum daily price change permissible on the futures exchange

B.

A temporary suspension of trading at a futures exchange

C.

The initial margin requirements at a futures exchange

D.

The minimum fluctuation in price allowed for a futures contract as specified by the contract terms

The use of a bilateral netting scheme for FX settlements results in:

A.

One net settlement per currency, per counterparty, per day

B.

One net settlement per currency, per day

C.

A single net settlement per day

D.

Multiple settlements per currency, per counterparty, per day for those netted settlements

A message received but not accepted by SWIFT will be acknowledged with:

A.

NOK

B.

ACK

C.

PAC

D.

NAK

If a money market dealer considers placing a given amount at another bank, he must first of all check:

A.

The level of the prevailing market rates

B.

If the funds are available on the nostro account of the bank

C.

If they will be able to generate the outgoing payment

D.

The availability on the country limit and the credit line of his counterparty

In the UK, Sterling T-Bills are issued by:

A.

The Government (Debt Management Office)

B.

The Bank of England

C.

The FSA

D.

The International Monetary Fund (IMF)

Under what circumstances should you ask for "use of funds"?

A.

If you have credit balances on several nostro accounts and have to use these balances to cover your outstanding payment orders

B.

If your nostro A shows a debit whereas your nostro B shows a credit balance, you allow correspondent B to use your credit balance to work with, in order to receive credit interests to partially or totally cover the overdraft interests on nostro A.

C.

If at the end of a month, you want to collect the credit balances and to ask for credit interest

D.

If the net balance on a nostro account is higher than the amount agreed upon with your counterparty

What is the meaning of settlement (Herstatt) risk?

A.

The risk a payment order will not be processed due to a power failure in which the disaster recovery back-up system fails

B.

Any amount that is due to be received under a contract should be regarded as a settlement risk until final confirmation of receipt is confirmed

C.

The risk that settlement arrangements will be made with the wrong counterparty

D.

The risk of aborting settlement procedures due to the unavailability of back office staff

The interest earned on a HUF 5.000.000.00 money market deposit for 90 days is HUF 62,500.00. What was the interest rate?

A.

5.07%

B.

5.06%

C.

4.93%

D.

5.00%