Question 1

When an employee executes a personal trade in advance of a client's or institution's order to benefit from the anticipated movement in the market price following the execution of a large trade, it is called:

Options :

A : forward-facing

B :

insider dealing

C : front running

D : ex ante trading

Answer: C

Question 2

When differences in payment arise because of errors in the payment of funds:

Options :

A : no party involved can be enforced to contribute to achieve an equitable resolution to the problem

B : claims are calculated on the full principal amount of the failed payment with the interest rate imposed by the injured party

C : claims should be made for the costs incurred by the injured party and include all administration costs

D : no market participant should be unjustly enriched or injured by the action/error of another market participant

Answer: D

Question 3

When a broker needs to switch a name this should be done:

Options :

A : only after approval by the broker-s senior management

B : only if the switching transaction is done at the current market rate

C : only after consultation with the local regulator

D : only provided that such transactions are identified as switching transactions

Answer: D

Question 4

Which of the following are transferable instruments?

Options :

A : US Treasury bill

B : Eurocertificate of deposit

C : CP

D : All of the above

Answer: D

Question 5

Dealers are authorized to deal:

Options :

A :

anywhere, even away from their own dealing premises

B : after-hours, but only from their private residence

C : after-hours, but only if listed as such by management

D : away from their broker-s dealing premises

Answer: C

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