You have taken 3-month (92 days) deposits of CAD 12,000,000.00 at 1.10% and CAD 6,000,000.00 at 1.04%. Minutes later, yo

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You have taken 3-month (92 days) deposits of CAD 12,000,000.00 at 1.10% and CAD
6,000,000.00 at 1.04%. Minutes later, you quote 3-month CAD 1.09-14% to another bank.
The other dealer takes the CAD 18,000,000.00 at your quoted price. What is your profit or loss on this deal?
A. CAD 2,722.19
B. CAD 460.00
C. CAD 3,220.00
D. CAD 2,760.00

Answer : D



Which of the following is a Eurocurrency deposit?
A. A 3-month deposit of USD 10,000,000.00 offered by a US bank in New York
B. A 3-month deposit of USD 10,000,000.00 offered by the US branch of a UK bank in New York
C. A 3-month deposit of USD 10,000,000.00 offered by a US bank in London
D. A 3-month deposit of GBP 10,000,000.00 offered by the UK branch of a US bank in London

Answer : C


A 12-month EUR/USD swap is quoted at 41/44. EUR interest rates are expected to fall, with USD interest rates remaining stable.
Assuming no change in the spot rate what effect would you expect on the forward points?
A. Unchanged
B. Move towards 28/31
C. Move towards 5 7/60
D. Insufficient information

Answer : C



When banks transact FX swaps, the spot price should be determined:
A. anytime after the swap is transacted
B. before the swap is transacted
C. immediately after the swap is transacted
D. no less than 24 hours after the completion of the swap

Answer : C


As far as fineness and weight are concerned, what are the London Bullion Market
Association (LBMA) requirements for a good delivery bar?
A. at least 995/1000 pure gold; weight between 350 and 430 fine ounces
B. minimum 999.9/1000 pure gold; weight between 350 and 430 fine ounces
C. at least 995/1000 pure gold; weight of 400 fine ounces
D. minimum 995/1000 pure gold; weight of 400 fine ounces


Answer : A