SOFQ Online Practice Questions and Answers

The market in which debt is issued over the long-term describes:

A. The money market

B. The foreign exchange market

C. The capital market

D. The equity market

The date on which a securities trade is intended to settle is: A. The actual settlement date

B. The contractual trade date

C. The value date

D. The trade date

The following are examples of money market instruments:

A. Zero coupon bonds and Floating-rate notes

B. Convertible bonds and Mortgage-Backed Securities

C. Fixed-rate bonds and Step-up bonds

D. Commercial Paper and Certificate of Deposit

The ISIN stands for:

A. International Securities Identification Number; a 13-character alpha-numeric code

B. International Secondary ID Notation; a 13-character alpha-numeric code

C. International Securities Identification Number; a 12-character alpha-numeric code

D. International Secondary ID Notation; a 12-character alpha-numeric code

The type of organisation that specializes in deposit-taking and cash loans is known as a:

A. Mutual fund

B. Commercial bank

C. Investment bank

D. Private bank

A European country that has not adopted the Euro is:

A. Belgium

B. Slovakia

C. Slovenia

D. Norway

The physical substances of natural gas/ barley and zinc fall within the following financial heading:

A. Cash

B. Derivatives

C. Commodities

D. Securities

A S.W.I.FT. MT541 instructs a custodian to:

A. Receive securities on a Free of Payment basis

B. Receive securities on a Delivery versus Payment basis

C. Deliver securities on a Delivery versus Payment basis

D. Deliver securities on a Free of Payment basis

The number of days of accrued interest, and the cash value of accrued interest - on a trade of USD 45,000,000 World Bank 4.37% Bonds 1st December 2032, paying interest semi- annually on 1st December and Ist June, trade date 22~d October, value date 25tl October, is:

A. 144 days and USD 786,600.00

B. 174 days and USD 950,475.00

C. 141 days and USD 770,212.50

D. 171 days and USD 934,087-50

A firm executing a securities trade in the capacity of agency broker intends:

A. To take a securities position, and to remain market risk neutral

B. Not to take a securities position, and not to remain market risk neutra

C. Not to take a securities position, and to remain market risk neutral

D. To take a securities position, and not to remain market risk neutral