3I0-010 Online Practice Questions and Answers

What is the deadline for settling interbank spot-deals in EUR via the TARGET system?

A. 10:00 CET

B. 18:00 CET

C. 12:00 CET

D. 15:00 CET

The coupon of this type of bond can be based on a country`s CPI (Consumer Price Index):

A. "step up" bonds

B. index linked bonds

C. premium bonds

D. par bonds

When do you use a SWIFT message type 202?

A. for a foreign exchange confirmation

B. for multiple general financial institution transfers

C. to confirm a general financial institution transfer

D. for a customer transfer

What payment system is used by EU national central banks and the European Central Bank?

A. SWIFT

B. CHAPS

C. EAF

D. TARGET

Why should the maturity profile of unreconciled items be frequently reviewed?

A. It allows the compliance officer to see how often the reconciliation staff has claimed for an outstanding item

B. It allows management to see what items are pending by value and counterparty, but also how long items have been outstanding and whether there is an improvement in the pace of reconciliations.

C. It allows reconciliation staff to check the bilateral limits with counterparties and to adjust these limits as necessary

D. because the most recent figures have to be published in the balance report

When completing a nostro reconciliation, what does an unresolved ledger credit signify?

A. the duplicate receipt of funds from a counterparty

B. the non-payment of funds to a counterparty

C. the duplicate payment of funds to a counterparty

D. the non-receipt of funds from a counterparty

Open position and exchange risk management by currency belongs to which treasury system module?

A. the derivatives dealing and processing module

B. standard back office features

C. the FX spot and forward dealing input and processing module

D. the securities trading and processing module

Which risk factors fall under counterparty risk?

A. currency risk, interest rate risk and swap risk

B. settlement risk, delivery risk and replacement cost

C. operational risk

D. settlement risk and swap risk

You suspect that a colleague is guilty of embezzlement. What should you do?

A. keep the information to yourself

B. tell your supervisor

C. tell your work-mates but not your supervisor

D. talk to the colleague in question

The risk associated with the failure of the overall financial system is best described as:

A. operational Risk

B. market Risk

C. systemic Risk

D. credit Risk

What are the factors determining if a FX transaction can be settled through the CLS Bank?

A. currency pair, price

B. currency pair, counterparty, time

C. currency pair, price, counterparty

D. counterparty, price

What are the main advantages of settling an FX transaction through the CLS Bank?

A. CLS eliminates foreign exchange risk and thus increases bank profits on FX deals

B. CLS minimizes the settlement risk

C. CLS reduces operational banking costs

D. CLS eliminates the settlement risk but reduces operational efficiency

If the interest earned on a EUR deposit of 10,000,000.00 for 60 days is EUR 83,333.33, what was the interest rate?

A. 10.00%

B. 5.00%

C. 8.33%

D. 0.50%

You borrow GBP 2,500,000.00 at 6 5/8% for 165 days. How much do you have to repay, including interest?

A. GBP 2,575,911.46

B. GBP 2,574,871.58

C. GBP 2,573,459.90

D. GBP 2,573,986.25

Which of the following statements is correct?

A. The settlement of a FRA is paid at maturity date.

B. The settlement amount is paid at the trade date of a FRA.

C. The cash settlement amount on a FRA is usually a discounted amount.

D. The settlement amount on a FRA is not based on the LIBOR for the relevant period.