Your are quoted the following rates:

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Your are quoted the following rates:

Spot CHF/JPY105.12-22 -
3M CHF/JPY 3.5/4.5
At what rate can you buy 3-month outright JPY against CHF?
A. 105.085
B. 105.265
C. 108.62
D. 105.155

Answer : D



If spot NZD/CHF is quoted to you as 0.7406-09. How many NZD would you receive in exchange for CHF 5,000,000.00 if you dealt on the price?
A. 3,704,500.00
B. 6,748,549.06
C. 3,703,000.00
D. 6,751,282.74

Answer : B



Repo is said to have double indemnity due to the creditworthiness of the counterparty and:
A. A written legal agreement between the parties
B. The oversight of the transaction by the custodian of the collateral
C. The creditworthiness of the collateral
D. The right of close-out and set-off in an event of default

Answer : C



When considering interest rate risk in the banking book, retail demand deposits without fixed contractual maturity:
A. should be assumed to have zero duration
B. should be treated like other instantly variable rate liabilities, such as overnight money market borrowing.
C. should be assumed to have a low correlation with money market reference rates
D. represent a minor contributor to interest rate risk and can safely be disregarded

Answer : C



A bank borrowing USD for 12 months and lending them for 6 months creates:
A. Forward-forward loan
B. Forward-forward deposit
C. Negative gap
D. An over-lent position


Answer : B