3I0-008 Online Practice Questions and Answers

Click on the Detail Button to view the Formula Sheet. What is a Vostro account?

A. Your account at another bank

B. A foreign bank's account in your bank in your domestic currency

C. An account in your bank used for internal transactions

D. A customer's account at your bank

Click on the Detail Button to view the Formula Sheet. A CD with a face value of USD50 million and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss since issue?

A. +USD 373,599.00

B. +USD 186,099.00

C. -USD 1,400.99

D. Nil

Click on the Detail Button to view the Formula Sheet. What is the Gold Offered Forward Rate?

A. The price differential between spot and forward gold prices

B. The rate at which dealers will lend gold against US dollars

C. The implied forward price of gold

D. The price of gold for forward delivery

Click on the Detail Button to view the Formula Sheet. You bought USD 5,000,000 against EUR at 1.1037 and 3,000,000 at 1.1052. If the EUR/USD rate is now quoted 1.1015/17, and if you deal at that rate, what profit would you make?

A. Nil

B. A profit of EUR 16,847.58

C. A loss

D. A profit of EUR 18,166.05

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. Where the matter of dealing for personal account is concerned, the Model Code recommends that:

A. Subject to local legal requirements, this matter is one for bank management to decide.

B. Bank management should encourage such activities because it allows banks to monitor the gambling habits of their staff.

C. Where this is allowed, bank management should have a clearly defined policy and written procedures.

D. Bank management should allow staff to deal for their personal account on a case to case basis.

Click on the Detail Button to view the Formula Sheet. Which of the following currencies is quoted on an actual/360 basis?

A. EUR

B. JPY

C. CHF

D. All of the above

Click on the Detail Button to view the Formula Sheet. The two-week repo rate for the 5.25% bund 2007 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000 with no initial margin. You would earn repo interest of:

A. EUR 349,806

B. EUR 344,632

C. EUR 319,315

D. EUR 324,110

Click on the Detail Button to view the Formula Sheet. A customer sells a LIFFE Euro Swiss futures contract. Which of the following risks could he be trying to hedge?

A. An increase in forward USD/CHF

B. Falling CHF interest rates

C. A decrease in forward USD/CHF

D. Rising CHF interest rates

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.