Click on the Detail Button to view the Formula Sheet. When a stop-loss/profit order is taken, the rate specified in the order:
A. Must be transacted regardless of where the market moved.
B. Must be transacted if a broker confirms that the rate specified was reached
C. Cannot be taken as a fixed-price guarantee.
D. None of the above.
Click on the Detail Button to view the Formula Sheet. Dealers are allowed to trade for their own account if:
A. The dealers have good track records in their dealing both for the institution and for themselves.
B. There has been no previous conflicts of interest in the dealing room.
C. There is a clearly laid down policy.
D. The dealers see no conflict of interest in such dealing.
Click on the Detail Button to view the Formula Sheet. The use of off-market rates is discouraged and should be permitted only:
A. When the bank's income is secured on the trade.
B. If the unsecured credit is taken into account.
C. If the bank knows the customer very well.
D. When there are written procedures and policies for such transactions.
Click on the Detail Button to view the Formula Sheet. A dealer has been asked by a broker to go to an exclusive club for the third time in a week. He should:
A. Agree. Entertainment is a normal part of business.
B. Refuse. This entertainment is excessive in value and frequency.
C. Agree but insist on paying half the cost.
D. Refuse. Going back to the same club is clearly excessive entertainment.
Click on the Detail Button to view the Formula Sheet. What is Model Codes recommendation on the settlement of differences by "points"?
A. It is not favoured.
B. It may be permitted when allowed by the local market regulator.
C. It is unconditionally accepted by the Code.
D. It is allowed only if senior management approval is obtained.
Click on the Detail Button to view the Formula Sheet. Which of the following is true?
A. It is the responsibility of the broking firm to conduct due diligence before transacting a deal.
B. All principals have the responsibility for assessing the creditworthiness of their counterparties or potential counterparties whether dealing direct or through a broking firm.
C. The principal is obliged to take into account any information provided by a broker as they are bound by a professional relationship.
D. All of the above.
Click on the Detail Button to view the Formula Sheet. A bank that has quoted a firm price is obliged to deal:
A. At that price.
B. At that price in a marketable amount.
C. At that price in a marketable amount with an acceptable name.
D. At that price in a marketable amount with an acceptable name and provided the market price has not moved excessively.
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. In the unforeseen event that a particular maturity date is declared a public holiday, what is normal market practice for spot FX? :
A. Extend the contract to the next business day
B. Shorten the contract to the previous business day
C. A new maturity date has to be agreed by the two parties involved
D. ACI's Committee for Professionalism decides on a case by case basis
Click on the Detail Button to view the Formula Sheet. A broker can consider a deal as done if:
A. He is confident that the dealer will not back out of the deal.
B. Both parties have established credit lines for each other.
C. One party acknowledges interest.
D. He receives verbal acknowledgement from the dealer.
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