The Model Code stipulates that you have a right to qualify your quotes in terms of amounts:

A. if you do so when you make the price

B. provided the amounts are marketable

C. once you have discovered the name of the counterparty for credit reasons

D. at anytime

What does the Model Code say concerning repos and stock-lending?

A. Legal documentation must be put in place as soon as possible after transaction.

B. All market participants should use the Modified Previous Business Day Convention.

C. The exact maturity (end) dates for transactions must be agreed as soon as possible after a transaction.

D. All market participants should use the Modified Following Business Day Convention.

What is the expression used to describe a genuine error (wrong amount, wrong side, wrong rate) made by a dealer in the execution of an order on an electronic platform?

A. mis-stroke

B. slip-bid

C. mis-hit

D. broken trade

A fixed rate forward/forward non-deliverable deposit/loan transaction, settled in cash with an agreed upon process for calculating the market reference at the commencement of the forward/forward period, is called:

A. an interest rate swap

B. a forward rate agreement

C. a short term interest rate future

D. an interest rate collar

The Model Code is clear on "position parking". What does it say?

A. The parking of deals or positions with any counterparty is discouraged B. The parking of deals or positions with any counterparty should be forbidden

B. The parking of deals or positions should be subject to a clear policy laid down in writing by senior management

C. In jurisdictions where position parking is allowed, prior approval should be sought from the regulator

If there is a need for assistance to help resolve a dispute over differences between a broker and a bank, the Model Code suggests turning to:

A. the monetary authority in the country where the broker is located

B. the banking association in the country where the bank is located

C. the Committee for Professionalism of the ACI

D. the local foreign exchange market committee

Today is Monday, 8th December. You sell a 9x12 FRA for value Thursday, 10th September next year. On what date is the settlement amount due to be paid or received (assuming that there are no holidays)?

A. 8th September next year

B. 10th September next year

C. 8th December next year

D. 10th December next year

Click on the Exhibit Button to view the Formula Sheet. You are short of 6 Dec euro dollar futures contracts at 98.10. Yesterday, the closing price was 98.15. Today's closing price is 97.905.Whatvariation margin will be due?

A. You will have to pay USD 612.50

B. You will receive USD 612.50

C. You will have to pay USD 3,675.00

D. You will receive USD 3,675.00

Bank B's price is shown by a broker to Bank A and is dealt by Bank A. If Bank A wants to increase the amount of the transaction, what is good market practice according to the Model Code:

A. Bank A can call Bank B directly.

B. Bank A should wait 10 minutes before calling Bank B.

C. Bank A cannot increase the amount.

D. Bank A should go back to the broker.

You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced that the story is true, but have a friend at another bank who you know has very large exposures to this firm and would be seriously damaged by a default. What advice does the Model Code give?

A. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should not be passed on in any circumstances.

B. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be discussed only with great care.

C. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be reported to the regulator in order to provide warning of possible systemic problems.

D. You have a duty to warn counterparties but should make clear that the information is unsubstantiated.