SOFQ Online Practice Questions and Answers

The two choices for the settlement method utilised within a securities market are:

A. 'Account Settlement1 and Tumbling Settlement'

B. Tumbling Settlement' and 'Continuing Settlement'

C. 'Continuing Settlement'and'Account Settlement'

D. 'Rolling Settlement' and 'Account Settlement'

The following are examples of money market instruments:

A. Zero coupon bonds and Floating-rate notes

B. Convertible bonds and Mortgage-Backed Securities

C. Fixed-rate bonds and Step-up bonds

D. Commercial Paper and Certificate of Deposit

The Clearstream Group includes:

A. The ICSD 'Clearstream Banking Paris' and the NSCD 'Clearstream Banking Munich'

B. The ICSD 'Clearstream Banking Brussels' and the NCSD 'Clearstream Banking Berlin'

C. The ICSD 'Clearstream Banking Luxembourg' and the NSCD 'Clearstream Banking Frankfurt'

D. The ICSD 'Clearstream Banking Amsterdam' and the NSCD 'Clearstream Banking Luxembourg'

A cash amount of GBP 5,909,658.47 lent on a Thursday until the second Monday (just over 1 week later) at a rate of 2.973%, would attract:

A. 7 days of interest and a cash interest amount of GBP 3369.48

B. 9 days of interest and a cash interest amount of GBP 4392.35

C. 13 days of interest and a cash interest amount of GBP 6344.51

D. 11 days of interest and a cash interest amount of GBP 5294.89

IPO' stands for:

A. International Private Offering

B. Inclusive Pre Offering

C. Initial Public Offering

D. Integrated Post Offering

The calculation of profit and loss for securities includes:

A. Realised (potential) PandLand Unrealised (actual) PandL

B. Realised (projected) PandL and Unrealised (authentic) PandL

C. Realised (predicted) PandL and Unrealised (likely) PandL

D. Realised (actual) PandLand Unrealised (potential) PandL

DTC - the central securities depository for US equities is the abbreviation for:

A. Depository Trust Company

B. Depot Transaction

C. Deposit and Trade Conglomerate

D. Depot for Trades Corporation

A bond whose coupon rate increases at pre-specified dates and at a pre-specified interest rate is known as:

A. A floating rate note

B. A convertible bond

C. A mortgage-backed security

D. A step-up bond

A S.W.I.FT. 'Bank Identifier Code' comprises::

A. A region code, a country code and a city code

B. A bank code, a country code and a location code

C. A continent code, a country code and a municipality code

D. A bank code, a continent code and a currency code

The price of a bond trade which excludes accrued interest is known as:

A. A dirty price

B. A fresh price

C. A clean price

D. A cloudy price

Where Firm A has borrowed a fixed cash amount on a secured basis from Firm B, an increase in the collateral value means that:

A. Firm A has exposure and must return some collateral to Firm B

B. FirmB has exposure and must request additional collateral from Firm A

C. Firm B has exposure and must request the return of collateral from Firm A

D. Firm A has exposure and must request the return of some collateral from Firm B

A 'put' option on a bond allows:

A. The stock exchange to force the bondholder to redeem the bonds prior to the bond's scheduled maturity date

B. The regulator to force the issuer to redeem the bonds prior to the bond's scheduled maturity date

C. The bondholder to redeem their bonds prior to the bond's scheduled maturity date

D. The bond issuer to force redemption of bonds prior to the bond's scheduled maturity date

Internal trading systems typically do not:

A. Reflect the firm's settled positions at CSDs/custodians

B. Have the capability to capture new trades

C. Hold the firm's current trading positions

D. Have the capability to amend and cancel trades

The abbreviation WAC stands for:

A. Wheel and Calculate

B. Weighted Average Cost

C. West Against Charge

D. Wait About Control

A firm executing a securities trade in the capacity of agency broker intends:

A. To take a securities position, and to remain market risk neutral

B. Not to take a securities position, and not to remain market risk neutra

C. Not to take a securities position, and to remain market risk neutral

D. To take a securities position, and not to remain market risk neutral