3I0-010 Online Practice Questions and Answers

According to ISDA definitions, if an USD IRS payment is due value Saturday, 31 May and the documentation states that the "modified business day convention" will be used, what value date should be applied to the payment?

A. Saturday, 31 May

B. Tuesday, 3 June

C. Monday, 2 June

D. Friday, 30 May

Which of the following factors must be considered when making interbank EUR payments in RTGS systems between 17:00 CET and 18:00 CET with same day value?

A. no special requirements need to be considered

B. the receiver has to approve the transfer

C. interest has to be paid to the receiver

D. the receiver is required to accept the payment amount

What is a junk bond?

A. an AAA-rated security in payment default

B. a sub-investment grade instrument

C. an OECD Government bond

D. a bond typically paying lower yields than an investment grade instrument

Which of the following is characteristically of a CD?

A. A CD is a certificate for a gold deposit

B. The CD issuer can redeem the certificate at any time

C. It is a non-negotiable instrument.

D. A CD is a certificate for a time deposit

A corporate client instructs you to make a USD payment to his account in London. What two message types should you send?

A. MT 202 and MT 103

B. MT 202 and MT 210

C. MT 200 and MT 103

D. MT 103 and MT 210

Which department is responsible for originating deals?

A. the front office

B. the back office

C. the middle office

D. the compliance department

Which ONE of the following excerpts completes this statement of a best market practice? "Any exception to the confirmation process should be resolved..."

A. no later than the value date

B. within 2 days

C. within 1 week

D. on the day it is discovered

The organization SWIFT belongs to:

A. the participants (users) of this system

B. the Central Bank of Belgium

C. the European Central Bank

D. the IMF

What does "arrange good value payment" mean?

A. to cancel an initial payment order and to process a new one with a higher amount

B. to suspend a payment order until the balance becomes positive again

C. to adjust the amount of fees to be paid

D. to change the value date of a payment order

Which country does the BIC-address BKENGB33CUS belong to?

A. the United Kingdom

B. the United States of America

C. Germany

D. Gambia

What is the replacement risk of an OTC derivative trade?

A. the risk that there is no liquid market at the exchange to close a trade

B. the risk that the present value of a trade will be negative one day prior to value date

C. the risk that an OTC-derivative product cannot be closed before maturity

D. the loss incurred if the counterparty defaults

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

On the sale of a CD, the seller

A. receives a lower price than he originally paid

B. receives a higher price than he originally paid

C. receives a price calculated using the price originally paid

D. there is not enough information to know how much the seller receives

If today's spot date were Friday, 27 February, what would the normal one-month deposit maturity date be? (Assume there are no bank holidays)

A. 28 March

B. 29 March

C. 30 March

D. 31 March

If the maturity of a straight 3-month deposit falls on a Saturday, which is also the last day of the month, what will be the final end date of this transaction?

A. the following Monday

B. Saturday

C. the last business day of the month

D. the first business day of the following month