Question 1

A dealer in the spot foreign exchange market has to assume that a price given to a voice broker is only valid:

Options :

A : until the price has been taken off' by the dealer'

B : for a short length of time, usually 30 seconds

C : for a short length of time, typically a matter of seconds

D : for a minute or two

Answer: C

Question 2

When a broker calls off" at the very instant a dealer "hits" the broker's price:"

Options :

A : The transaction should not be concluded.

B : The broker decides whether or not the deal is done.

C : ACI-s Committee for Professionalism will decide whether the transaction should be concluded.

D : The transaction should be concluded.

Answer: A

Question 3

In a plain vanilla interest rate swap, the fixed-rate payer":"

Options :

A : has established the price sensitivities of a longer-term fixed-rate asset and a floating-rate liability

B : has established the price sensitivities of a longer-term fixed-rate liability and a floating-rate asset

C : pays floating in the swap

D : receives fixed in the swap

Answer: B

Question 4

What is the maximum maturity of a US Treasury bill?

Options :

A : 5years

B : 270 days

C : One year

D : 183 days

Answer: C

Question 5

On fixing date, the settlement payment of an NDF reflects the differential between the agreed forward rate and:

Options :

A : the daily high

B : the days' average rate

C : the fixing spot rate

D : the average rate over the NDF period

Answer: C

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