What is a nostro bank account?

A. an account held with another bank

B. an account another bank holds with you

C. a trust account

D. a suspense account

The difference between the bid and the offer rate of a money market quotation is called:

A. the margin

B. the spread

C. the variation

D. the premium

Confirmation is a function that can be performed by:

A. any dealer as long as he/she is not a party to the trade

B. back-office staff

C. dealing room staff who is not currently dealing

D. any staff outside the dealing room

What is a correspondent bank?

A. a bank which processes payment orders on behalf of another bank

B. a bank which processes payment orders on national level only

C. a bank which has subsidiaries in CLS-countries

D. a bank which has a minimum reserve account in more than one country

You have five outstanding amounts with five different values. Which of the following should be investigated first?

A. The most recently processed deal

B. The counterparties in your own country

C. The counterparty which claims first

D. Those positions with the highest loss potential

Which of the following is a fundamental element or module in the "securities dealing and processing" part of a treasury system?

A. the financial reporting standard

B. brokerage accounting

C. the custodian account reconciliation function

D. the country limit overview

Illiquid describes an instrument which:

A. does not trade in an active market

B. does not trade on any exchange

C. cannot be easily hedged

D. is an over-the-counter (OTC) product

What is the maximum term London Certificates of Deposit are issued?

A. 12 months

B. 18 months

C. 5 years

D. 2 years

An interest rate CAP can be defined as:

A. a series of American call options on FRAs

B. a series of European call options on FRAs

C. a series of American put options on FRAs

D. a series of European put options on FRAs

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