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

When quoting the exchange rate between the USD and AUDI which is conventionally the base currency?

Options :

A : AUD

B : USD

C : Depends on whether the price is being quoted in Australia or the US

D : Depends on whether the price is being quoted interbank or to a customer

Answer: A

Question 3

If the yield curve is upward sloping, a bank would not profit from:

Options :

A : borrowing long and lending short

B : borrowing short and lending long

C : paying a higher rate on deposits than the market

D : increasing the banks leverage

Answer: A

Question 4

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 5

You borrow GBP 2,500,000.00 at 0.625% for 165 days. How much do you repay including interest?

Options :

A : GBP 2,507,106.16

B : GBP 2,507,161.46

C : GBP 2,507,006.85

D : GBP 2,507,063.36

Answer: D

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