Question 1

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

Question 2

Settlement prices on futures contracts are

Options :

A : official prices calculated by the exchange at the close of trading for the purpose of making margin calculations

B : official prices calculated by a panel of central banks

C : official prices calculated by the central bank where the stock exchange is located

D : never used

Answer: A

Question 3

The coupon of this type of bond can be based on a country`s CPI (Consumer Price Index)

Options :

A : "step up" bonds

B : index linked bonds

C : premium bonds

D : par bonds

Answer: B

Question 4

Which SWIFT message formats would you use for a foreign exchange confirmation and fixed money market confirmation, respectively?

Options :

A : MT 400, MT 950

B : MT 200, MT 100

C : MT 300, MT 950

D : MT 300, MT 320

Answer: D

Question 5

Which of the following is the best description of a broken trade”?

Options :

A : When a trade has been agreed to with dates (maturities) different from the standard dates

B : When one of the parties to the deal unilaterally decides to withdraw from the on-going transaction

C : When, due to a system break, one or both parties to the deal chooses to withdraw from the ongoing transaction

D : When, due to a system break, one or both parties to the deal are unclear as to whether the deal has been done

Answer: D

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