Click on the Detail Button to view the Formula Sheet. Deliberately inputting incorrect big figures into an electronic dealing platform is:

A. Technically impossible on electronic platforms

B. Not an uncommon practice and something which professional dealers should be able to guard against.

C. Not good practice.

D. A criminal offence.

Click on the Detail Button to view the Formula Sheet. For which of the following reasons is the extension of

forward contracts at non-current rates is discouraged:

These could be used to conceal profit or losses.

ii.These could be used to perpetrate fraud.

iii.These could result in an unauthorised extension of credit.

iv.These could result in confusing settlement instructions.

A. (i), (ii), (iii), and (iv).

B. (i), (ii) and (iii).

C. (i) and (iii).

D. none of the above.

Click on the Detail Button to view the Formula Sheet. For which countrys currency is ZAR the ISO code?

A. Saudi Arabia

B. South Africa

C. Zimbabwe

D. Zambia

Click on the Detail Button to view the Formula Sheet. What is an FX swap?

A. An exchange of two streams of interest payments in different currencies and an exchange of the principal amounts of those currencies at maturity

B. A spot sale (purchase) and a forward purchase (sale) of two currencies agreed simultaneously between two parties

C. An exchange of currencies on a date beyond spot and at a price fixed today

D. None of the above

Click on the Detail Button to view the Formula Sheet. A futures clearing house is:

A. The buyer to each seller and the seller to each buyer

B. A clearing agent only

C. The self-regulatory organisation for the futures exchange

D. The owner of the futures exchange

Click on the Detail Button to view the Formula Sheet. Basis risk on a futures contract is:

A. The risk of an adverse change in the futures price

B. The risk of an adverse change in the spread between futures and cash prices

C. The progressive illiquidity of a futures contract as it approaches expiry

D. The risk of a divergence between the futures price and the final fixing of the underlying interest rate

Click on the Detail Button to view the Formula Sheet. What is the Overnight Index for EUR?

A. EURIBOR

B. EONIA

C. Eurepo

D. TMP

Click on the Detail Button to view the Formula Sheet. 3-month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?

A. unchanged

B. 118/116

C. 109/107

D. 106/104

Click on the Detail Button to view the Formula Sheet. 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.

Click on the Detail Button to view the Formula Sheet. 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 half the cost.

D. Refuse. Going back to the same club is clearly excessive entertainment.