3I0-010 Online Practice Questions and Answers

You have two nostro accounts in USD, one account is long USD 5 million and the other is short USD 5 million. What action should be taken to reconcile the accounts?

A. No action is required. The credit interest earned on the credit balance will offset the debit interest incurred on the short balance

B. You should borrow USD 5 million to cover the short balance and leave the long balance as it is

C. You should lend the surplus USD 5 million in order to overdraft charges on the short balance with the interest earned on the loan

D. You should instruct the bank with the long balance to pay USD 5 million to the other bank

In the Euro deposit markets, what is spot?

A. value one bank business day forward

B. value two bank business days forward

C. value one calendar day forward

D. value two calendar days forward

Which clearing system allows a transfer to be settled with immediate finality?

A. EAF

B. EBA

C. RTGS

D. SWIFT

What is the advantage of instantaneous matching?

A. it gives the counterparty more time to cancel a deal

B. it reduces errors and costs

C. it gives front-office staff more time to process the payment orders

D. it increases transaction costs

When would you use a SWIFT message type 103?

A. for a foreign exchange confirmation

B. for a multiple general financial institution transfer

C. for a general financial institution transfer

D. for a customer transfer

What are the key fields for matching criteria in a spot FX transaction?

A. value date, currency and the amount bought or sold in the two currencies

B. value date, currency and the amount bought in that currency, currency and the amount sold in that currency, exchange rate

C. deal date, value date and exchange rate

D. value date, account number and BIC-address

What documents and/or information should you hold in order to start an investigation?

A. From the counterparty: the trade confirmation. In-house: the trade confirmation, nostro reconciliation details, the dealing ticket and eventually dealing-system conversation printout

B. From the counterparty: the dealers name and phone number. In-house: dealers name as well as the exact time the deal was processed

C. From the counterparty: the trade confirmation. In-house: the open item list, nostro reconciliation details and the dealing ticket

D. From counterparty: the balance report and the trade confirmation; In-house: the dealing-system conversation printout

What is a ladder maturity report?

A. a report that starts with the net open position and runs off day by day to arrive at a zero balance

B. a report of outstanding securities transactions

C. a report that begins with a zero balance and at the end of the day, lists all FX deals by maturity

D. a list of the maturity of all deals per value date

Your dealers have made the following deals in spot USD/JPY: Sold USD 5,000,000.00 at 111.60 Bought USD 3,500,000.00 at 111.20 Bought USD 2,000,000.00 at 111.50 Sold USD 2,000,000.00 at 111.55

What is your position?

A. Short USD 1,500,000.00 at 112.60

B. Short USD 3,500,000.00 at 111.75

C. Long USD 1,500,000.00 at 111.10

D. Short USD 1,500,000.00 at 111.55

Your dealer has bought USD 5,000,000.00 against EUR at a rate of 1.0785. In settlement you would expect to:

A. receive EUR 4,636,068.61

B. receive EUR 5,392,500.00

C. pay EUR 4,636,068.61

D. pay EUR 5,392,500.00