3I0-010 Online Practice Questions and Answers

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

A. liquidity, market and counterparty risk

B. only a funding risk

C. only a liquidity and a funding risk

D. settlement, funding and liquidity risk

What is a SWIFT message type 210?

A. a payment by a private customer

B. a confirmation of a spot transaction

C. an interbank payment

D. payment advice

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

A. SWIFT

B. CHAPS

C. EAF

D. TARGET

Which of the following currencies is eligible for CLS settlement?

A. ZAR

B. TRY

C. MYR

D. CNY

You receive a trade to process with counterparty settlement instructions that differ from those you hold on your standard settlement instruction file (SSI).

A. You should make the payment in accordance with the SSI you are holding without referring to your dealer or contacting the counterparty

B. You should make the payment in accordance with the trade instructions

C. You should check the SSI with your dealer and contact the counterparty to seek his specific instructions

D. You should not make the payment

Settlement risk is:

A. the risk that a bank makes its payment but does not receive a return payment in the exchanged currency

B. the risk that exchange rates move against a banks position

C. the risk a counterparty defaults on a contract and a bank has to replace that contract at adverse rates

D. the risk of a disaster that disables a bank's trading floor

If a spot next EUR/USD FX swap is traded on Monday, 18 August, and there are no holidays in the relevant currencies during the week of August 18 - 22 what would be the value dates of the two swap legs?

A. 20 - 27 August

B. 20 August - 20 September

C. 20 - 21 August

D. 19 - 20 August

In what order would the currencies of the major currency pairs generally be quoted in forex?

A. EUR/USD, USD/JPY, USD/GBP, USD/CHF, USD/CAD, USD/AUD

B. EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD

C. EUR/USD, USD/JPY, GBP/USD, USD/CHF, CAD/USD, AUD/USD

D. EUR/USD, USD/JPY, GBP/USD, USD/CHF, CAD/USD, USD/AUD

What information is NOT explicitly confirmed between the two counterparties of a FX swap transaction using a MT 300?

A. the rate

B. the amount

C. the swap points

D. settlement information

When is the settlement amount of a FRA normally payable?

A. at the beginning of the forward period

B. on the trade date

C. on the maturity (final) date

D. at any time before the contract's maturity date