Online Access Free 3I0-013 Exam Questions

Which of the following are considered money market, cash or derivative instruments?

• A.Forward FXs
• B.Currency futures
• C.Currency options
• D.Forward rate agreements (FRA)

When is the settlement amount of a FRA normally payable?

• A.At any time before the contracts maturity date
• B.At the beginning of the forward period
• C.On the trade date
• D.On the maturity (final) date

What is the disadvantage having separate cash accounts?

• A.One securities account could be overdrawn while the other has excess securities. The surplus balance would earn less interest, if any, than that being charged on the corresponding overdraft if an error occurs in settlement
• B.One account could be overdrawn while the other has excess funds. The surplus balance would earn less interest than the amount being charged on the corresponding overdraft if an error occurs in settlement. Thus there is a risk of overdraft interest versus idle balances
• C.The workload of the auditors, compliance officers, risk managers and dealers will be higher
• D.You need more back office staff to book the fees

Settlement prices on futures contracts are:

• A.Official prices calculated by a panel of central banks
• B.Official prices calculated by the central bank where the stock exchange is located
• C.Never used
• D.Official prices calculated by the exchange at the close of trading for the purpose of making margin calculations

What risks arise from not receiving the securities purchased or not receiving payment forsecurities sold?

• A.Liquidity, market and counterparty risk
• B.Settlement, funding and liquidity risk
• C.Only a funding risk
• D.Only a liquidity and a funding risk