3I0-008 Online Practice Questions and Answers

Click on the Detail Button to view the Formula Sheet. To curb attempted fraud, banks should:

A. Require greater vigilance by the management and staff.

B. Take particular care when the beneficiary is a third party to the deal.

C. Ensure that details of all telephone deals which do not include pre-agreed standard settlement instructions are confirmed by telex or similar means without delay.

D. All of the above.

Click on the Detail Button to view the Formula Sheet. Deliberately inputting incorrect big figures into an electronic dealing platform is:

A. Technically impossible on electronic platforms

B. Not an uncommon practice and something which professional dealers should be able to guard against.

C. Not good practice.

D. A criminal offence.

Click on the Detail Button to view the Formula Sheet. If EUR/USD is 1.1025-28 and the 6-month swap is 112.50/113, what is the 6-month outright price?

A. 1.1380-1.11405

B. 1.11375-1.1141

C. 1.09125-1.0915

D. None of these

Click on the Detail Button to view the Formula Sheet. A futures clearing house is:

A. The buyer to each seller and the seller to each buyer

B. A clearing agent only

C. The self-regulatory organisation for the futures exchange

D. The owner of the futures exchange

Click on the Detail Button to view the Formula Sheet. Confirmations must be sent out:

A. Immediately after the deal is done.

B. As quickly as possible after the deal is done.

C. By electronic media only, e.g. fax, telex.

D. Not later than the value date of the first leg of the transaction.

Click on the Detail Button to view the Formula Sheet. Gambling or betting amongst market participants has obvious dangers and:

A. Should be forbidden.

B. Should be strongly discouraged.

C. Should be monitored by management.

D. All of the above.

Click on the Detail Button to view the Formula Sheet. An Overnight Indexed Swap is:

A. A fixed-floating money market swap in which the floating rate is an overnight index fixed periodically over the term of the swap

B. A fixed-floating money market swap in which the floating rate is the mean of the overnight index over the term of the swap

C. A fixed-floating money market swap in which the floating rate is an overnight index compounded daily

D. All of the above

Click on the Detail Button to view the Formula Sheet. What is the purpose of a long strangle option strategy?

A. To anticipate very low volatility in the price of the underlying commodity

B. To anticipate moderately high volatility in the price of the underlying commodity

C. To anticipate moderate volatility in the price of the underlying commodity

D. To anticipate very high volatility in the price of the underlying commodity

Click on the Detail Button to view the Formula Sheet. Fraud is typically classified as:

A. Credit risk

B. Market risk

C. Legal risk

D. Operational risk

Click on the Detail Button to view the Formula Sheet. To curb attempted fraud, banks should:

A. Require greater vigilance by the management and staff.

B. Take particular care when the beneficiary is a third party to the deal.

C. Ensure that details of all telephone deals which do not include pre-agreed standard settlement instructions are confirmed by telex or similar means without delay.

D. All of the above.