The “spot basis” of a 2 against 4 months EUR/USD forward/forward swap is:

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The “spot basis” of a 2 against 4 months EUR/USD forward/forward swap is:
A. usually the current spot EUR/USD mid-market rate
B. commonly the prevailing 4-month forward EUR/USD mid-rate
C. always the forward EUR/USD bid rate of the first swap leg
D. generally the prevailing 2-month forward EUR/USD mid-rate

Answer : D



What is the ISO code for silver?
A. XAU
B. XAG
C. XPT
D. XPD

Answer : B



When a deal is done via a broker:
A. it need not be confirmed between the counterparties as the broker confirms it immediately with both counterparties
B. it should also be confirmed directly between the two counterparties
C. it is important to note that broker confirmations are bilateral confirmations between the principals of the trade
D. the dealer should obtain acknowledgement that the deal has been agreed to but may assume agreement to the trade in the absence of such acknowledgement

Answer : B



For which of the following might an MT370 be used?
A. To confirm an FX transaction
B. To advise the netting position of a currency in NDFS
C. To advise changes in SSIs
D. To confirm a MM transaction

Answer : B



Which of the following statements about leverage ratios under Basel III is correct?
A. The leverage ratio is the ratio of the banks Tier 1 Capital to total assets of the bank, excluding its off- balance sheet exposures and derivatives.
B. The purpose of introducing a leverage ratio is to avoid the build-up of excess leverage that could potentially lead to a credit crunch in stressed conditions.
C. The leverage ratio under Basel III must be higher than 4%.
D. The leverage ratio is the ratio of the banks Tier 1 and Tier 2 Capital to total assets of the bank, including its off-balance sheet exposures and derivatives.


Answer : B