Question 1

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

Question 2

What is the minimum basis on which a BCP should be updated and tested?

Options :

A : Whenever the BCP procedures are changed

B : Every 3 months

C : Every 6 months

D : Yearly

Answer: D

Question 3

If GBP/USD is 1.5350-53 and USD/JPY is 97.50-53, what is GBP/JPY?

Options :

A : 63.52-53

B : 149.66-74

C : 63.51-54

D : 149.69-71

Answer: B

Question 4

All other things being equal, if a bank borrows short and lends long what is the effect on the liquidity risk of the bank?

Options :

A : changes only when interest rates levels are low

B : positive

C : negative

D : changes only when interest rates levels are high

Answer: C

Question 5

Which one of the formulae below is correct?

Options :

A : Long a FRN + pay floating on a swap = long a synthetic straight bond.

B : Long a FRN + pay fixed on a swap = long a synthetic straight bond

C : Long a FRN + pay floating on a swap = short a synthetic straight bond

D : Long a FRN + receive floating on a swap = long a synthetic straight bond

Answer: A

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