Question 1

You bought a 6x9 EUR 8,000,000.00 FRA at 4.50%. Settlement is now due and 3 months (90 days) EURIBOR is 3.50%. What amount do you pay or receive?

Options :

A : pay EUR 20,000.00

B : receive EUR 20,000.00

C : pay EUR 19,826.52

D : receive EUR 19,826.52

Answer: C

Question 2

A corporate client instructs you to make a USD payment to his account in London. What two message types should you send?

Options :

A : MT 202 and MT 103

B : MT 202 and MT 210

C : MT 200 and MT 103

D : MT 103 and MT 210

Answer: A

Question 3

On the sale of a CD, the seller

Options :

A : receives a lower price than he originally paid

B : receives a higher price than he originally paid

C : receives a price calculated using the price originally paid

D : there is not enough information to know how much the seller receives

Answer: D

Question 4

Some large losses occurred in the past from derivatives trading because:

Options :

A : Derivatives brokers significantly over-charged their clients

B : Institutions did not understand the leverage of their transactions

C : Money managers engaged in intra-day trading

D : Money managers embezzled money using derivatives

Answer: B

Question 5

How is a call money market transaction generally confirmed?

Options :

A : by telephone between the traders

B : by a SWIFT message MT 320

C : by a SWIFT message MT 330

D : by a SWIFT message MT 300

Answer: C

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