3I0-010 Online Practice Questions and Answers

A 7% bond, maturing in 10 years, is selling at 92.00. What is its current yield?

A. 7.61%

B. 6.40%

C. 7%

D. the yield cannot be determined

Which of the following is the primary responsibility of an Operations Department?

A. writing the deal ticket

B. arranging the delivery of currency payments

C. checking the availability of counterparty limits

D. agreeing on the FX rate with the counter parts middle office

Why does The Model Code recommend the use of netting systems?

A. to avoid too heavy a workload for operations staff

B. to reduce settlement and credit risk

C. to enhance the straight through processing

D. to reduce the brokerage fees

What is the first task of the cash positions keeper every day?

A. makes sure the opening position for the current day is the agreed and reconciled position from the previous day

B. makes sure the previous days pending position is the opening position for the current day

C. He/she checks to see which dealer is in charge of which currency for that day

D. He/she checks to see which countries have bank holidays that day

S.I.

stands for:

A.

Secure Software Integration

B.

Standard Settlement Instructions

C.

Single Shared Information

D.

SWIFT Settlement Instruction

Experience has shown that recourse to taped telephone conversations proves invaluable to the speedy resolution of disputes. Therefore, the Model Code recommends:

A. that all telephone conversations be taped without informing any of the counterparties

B. that all telephone conversations be taped subject to the consent of the counterparties

C. that all telephone conversations between dealers and brokers be recorded

D. that only telephone conversations between FX dealers be recorded

On Friday, your trader lends GBP 10,000,000.00 overnight at 7 1/2%. The instructions are for repayment of principal + interest. How much would you expect to be repaid?

A. GBP 10,006,250.00

B. GBP 10,002,054.79

C. GBP 10,006,164.38

D. GBP 10,002,083.33

The payments due on a FRA are settled:

A. on the trade date

B. on the maturity date of the FRA

C. daily in accruals

D. on the start date of the FRA

For futures contracts quoted on an exchange:

A. the maintenance margin is a predetermined fraction of initial margin

B. the initial margin is a predetermined fraction of maintenance margin

C. the maintenance margin represents the brokerage costs

D. the maintenance margin represents management fees

What financial product involves exchanging a fixed interest rate for a floating interest rate?

A. a FX swap

B. a repurchase agreement

C. an interest rate swap

D. a dual swaption