Bank XYZ calls you for a quote in EUR/USD for EUR 50,000,000.00. If you decide to quote, which of the following is true?
A. You must be prepared to deal EUR 50,000,000.00.
B. You may quote without stating the amount you are prepared to deal.
C. You are only committed to deal in a marketable amount.
D. You must be prepared to deal for more than EUR 50,000,000.00 in case Bank XYZ wishes to.
When a deal is done via a broker:
A. it need not be confirmed between the counterparties as the broker confirms it immediately with both counterparties
B. it should also be confirmed directly between the two counterparties
C. it is important to note that broker confirmations are bilateral confirmations between the principals of the trade
D. the dealer should obtain acknowledgement that the deal has been agreed to but may assume agreement to the trade in the absence of such acknowledgement
Which of the following is required for institutions acting as prime brokers?
A. They must remain neutral and stay out of disputes between their customers.
B. They must rely on the execution venue to resolve disputes.
C. They must delegate the resolution of broken trades downstream to their clients.
D. They must take responsibility for the swift resolution of any disputes.
Which one of the following is a major objective of ACI-The Financial Markets Association?
A. to promote globalization and deregulation of the financial markets
B. to maintain the professional level of competence and to disseminate a high level of ethical and professional behavior
C. to act as the official international market regulator in the absence of government regulation
D. to become the sole global corporation of wholesale financial market professionals
What does the Model Code recommend regarding "entertainment and gifts"?
A. Management should monitor the form, frequency and cost of entertainment and gifts dealers receive, have a clearly articulated policy towards the giving/receipt of gifts and ensure the policy is enforced.
B. As gifts and entertainment may be offered in the normal course of business, employees can offer inducements to conduct business and solicit them from the personnel of other institutions.
C. Although management should not monitor the form, frequency or cost of entertainment/gifts dealers receive, they may have a policy towards the giving/receipt of gifts and ensure the policy is enforced.
D. Gifts or entertainment should never be offered in the normal course of business, and employees must never offer any inducements to conduct business, nor solicit them from other institutions.
A dealer has been invited by a broker to go to an exclusive club for the third time in a week. He should:
A. agree, since entertainment is a normal part of business
B. refer this to senior management
C. agree but insist on paying half the cost
D. agree, if the broker pays for the event but does not attend it
In interbank trading, if a dealer is calling "off" at the same time as the broker is hitting a price:
A. no transaction should be concluded and the broker should inform both counterparties accordingly
B. a transaction should be concluded and the broker should inform both counterparties accordingly
C. the dealer has the choice of either concluding the transaction or not
D. the broker decides whether the transaction should be concluded or not
In order to give a price in EUR/USD, the broker must:
A. know whether the European Central Bank or the Federal Reserve is in the market before quoting
B. be sure that the quoting bank's prices are not shared with other brokers
C. get the price from a bank or a bid and an offer from different banks in order to make a two-way price, because the broker cannot make prices on his own
D. make sure that the quoting banks have sufficient credit lines
Under Basel rules the meaning of CCF is:
A. Currency Conversion Factor
B. Credit Conversion Factor
C. Credit Contribution Factor
D. Credit Collateralization Factor
What is meant by "turn of the month"?
A. the last calendar day of the month
B. the last bank business day of the month
C. value last business day of the month against first business day of the next month
D. value first business day of the month against last business day of the same month
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