Question 1

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

Options :

A : AUD

B : USD

C : Depends on whether the price is being quoted in Australia or the US

D : Depends on whether the price is being quoted interbank or to a customer

Answer: A

Question 2

Where answer phone equipment is used for reporting and recording of off-premises transactions, it should be:

Options :

A : Secured so that reported transactions cannot be erased without senior management approval.

B : Secured by recordings that are stored for a suitable period.

C : On a number located in the office of the internal auditor.

D : On an special number known only to the chief dealer.

Answer: A

Question 3

What does the Model Code say concerning repos and stock-lending?

Options :

A : The exact maturity (end) dates for transactions must be agreed as soon as possible after a transaction.

B : All market participants should use the Modified Following Business Day Convention.

C : Legal documentation must be put in place as soon as possible after transaction.

D : All market participants should use the Modified Previous Business Day Convention.

Answer: B

Question 4

If GBP/USD is 1.5350-53 and USD/JPY is 97.50-53, what is GBP/JPY?

Options :

A : 63.52-53

B : 149.66-74

C : 63.51-54

D : 149.69-71

Answer: B

Question 5

You borrow GBP 2,500,000.00 at 0.625% for 165 days. How much do you repay including interest?

Options :

A : GBP 2,507,106.16

B : GBP 2,507,161.46

C : GBP 2,507,006.85

D : GBP 2,507,063.36

Answer: D

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