Question #1
A bond which permits the issuer to redeem the bond prior to its maturity date is known as a:
- A . Demandable bond
- B . Callable bond
- C . Requestable bond
- D . Askable bond
Correct Answer: B
Question #2
Within internal books and records, the recording of the trading book on a securities trade facilitates:
- A . Reconciliation of settled positions, per trading book and per security – between the trading department and operations
- B . Reconciliation of settled positions, per trading book and per security – between operations and the firm’s custodian
- C . Reconciliation of trading positions, per trading book and per security – between the firm’s counterparty and the firm’s custodian
- D . Reconciliation of trading positions, per trading book and per security – between the trading department and operations
Correct Answer: D
Question #3
The divisors applicable to the calculation of bank interest are:
- A . EUR = 360, USD = 360, GBP = 365
- B . EUR = 365, USD = 360, GBP = 365
- C . EUR = 365, USD = 365, GBP = 360
- D . EUR = 360, USD = 365, GBP = 360
Correct Answer: A
Question #4
The market in which debt is issued over the long-term describes:
- A . The money market
- B . The foreign exchange market
- C . The capital market
- D . The equity market
Correct Answer: C
Question #5
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’
Correct Answer: D
Question #6
The date on which a securities trade is intended to settle is:
- A . The actual settlement date
- B . The contractual trade date
- C . The value date
- D . The trade date
Correct Answer: C
Question #7
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
Correct Answer: D
Question #8
Thefollowing is an inaccurate statement:
- A . Warrants have a variable exercise price
- B . Warrants are exercisable by the warrant holder
- C . Warrants will expire if not exercised by the expiry date
- D . Warrants are detachable from the original security
Correct Answer: A
Question #9
The type of organisation that provides securities underwriting services is known as a
- A . Investment bank
- B . Insurance company
- C . Commercial bank
- D . Pension fund
Correct Answer: A
Question #10
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’
Correct Answer: C