The use of mobile phones from within the dealing room for transacting business:
A. Is not considered good practice.
B. Is accepted in case of direct deal input into the bank's system.
C. Is accepted for senior dealers.
D. Is accepted for hedging transactions.
When a broker makes an error on payment instructions The Model Code recommends that
A. The broker remains liable for the resulting difference for 3 full business days following the date of the transaction.
B. The broker remains liable until the error is discovered.
C. The broker is not liable at all.
D. The broker's liability should be limited as he is not in a position to directly rectify the situation.
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 halt the cost.
D. Refuse. Going back to the same club is clearly excessive entertainment.
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. It the bank knows the customer very well.
D. When there are written procedures and policies for such transactions.
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.
What is Model Codes recommendation on the settlement of dirrerences by "points"?
A. It is not favoured.
B. It may be permitted when allowed by the local market regulator.
C. Itis unconditionally accepted bythe Code.
D. It is allowed only if senior management approval is obtained.
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
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.
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.
You have done the following deals in spot USD/JPY:
Sold USD 5.0 million at 130.60 Bought USD 3.5 million at 130.20 Bought USD 2.0 million at 130.50 Sold USD 2.0 million at 130.55
What is your net position and average rate?
A. Short USD 1.5 million at 130.46
B. Long USD 1.5 million at 130.46
C. Short USD 1.5 million at 131.60
D. Long USD 1.5 million at 131.60
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