310-010 Exam Training Practice Tests (SUN ACI

Question 1

On Monday a dealer in a bank in Switzerland buys USD 5,000,000.00 against JPY spot. Value date of this spot transaction will be Wednesday,

A. assuming neither Tuesday nor Wednesday are bank holidays in the United States B. assuming that neither Tuesday nor Wednesday are bank holidays in Japan C. assuming neither Tuesday nor Wednesday are bank holidays in either Japan or the United States D. assuming neither Tuesday nor Wednesday are bank holidays in Switzerland

Correct Answer: C

Question 2

Which of the following is characteristically of a CD?

A. A CD is a certificate for a time deposit B. The CD issuer can redeem the certificate at any time C. A CD is a certificate for a gold deposit D. It is a non-negotiable instrument.

Correct Answer: A

Question 3

Rising interest rates will cause:

A. government borrowing to fall B. a higher volume on settlement C. bond prices to fall D. bond prices to rise in response to higher interest rates

Correct Answer: C

Question 4

What are the value dates of a tom next money market trade dealt Friday, 13 August?

A. 16 August 17 August B. 13 August 16 August C. 17 August 18 August D. 13 August 17 August

Correct Answer: A

Question 5

What financial product involves exchanging a fixed interest rate for a floating interest rate?

A. an interest rate swap B. a dual swaption C. a repurchase agreement D. a FX swap

Correct Answer: A

Question 6

In the absence of his normal dealer contact, a counterparty calls the back office and asks the clerk for his opinion about how long his money should be placed on deposit. What action should the back office clerk take?

A. He should give his opinion and refer the counterparty to another dealer. B. He should tell the counterparty that he is not qualified to give an opinion and refer the counterparty to another dealer. C. He should give his opinion and tell the counterparty that he is not qualified to do so. D. He should give his opinion.

Correct Answer: B

Question 7

How is a call money market transaction generally confirmed?

A. by a SWIFT message MT 330 B. by a SWIFT message MT 300 C. by telephone between the traders D. by a SWIFT message MT 320

Correct Answer: A

Question 8

If a 90-day interest rate is 5 1/4% and a 180-day interest rate is 6.30%. What is the 126-day rate using straight-line interpolation?

A. 5.67% B. 5.66% C. 5.68% D. 5.69%

Correct Answer: A

Question 9

Your dealer has bought USD 5,000,000.00 against EUR at a rate of 1.0785. In settlement you would expect to:

A. pay EUR 4,636,068.61 B. receive EUR 5,392,500.00 C. pay EUR 5,392,500.00 D. receive EUR 4,636,068.61

Correct Answer: A

Question 10

What is the disadvantage having separate cash accounts?

A. One account could be overdrawn while the other has excess funds. The surplus balance would earn less interest than the amount being charged on the corresponding overdraft if an error occurs in settlement. Thus there is a risk of overdraft interest versus idle balances B. You need more back office staff to book the fees C. The workload of the auditors, compliance officers, risk managers and dealers will be higher D. One securities account could be overdrawn while the other has excess securities. The surplus balance would earn less interest, if any, than that being charged on the corresponding overdraft if an error occurs in settlement

Correct Answer: A

Question 11

Which of the following is true about interest rate swaps?

A. The notional amount of the swap is generally not exchanged between counterparties B. Payment netting is only allowed through a third party C. The fixed rate and the floating rate payers know the cash value of their payments at the outset D. There is exchange of principal at the start and at the end of the swap

Correct Answer: A

Question 12

What is the function of the cash positions keeper?

A. He/she assists the dealer in deciding which currency to invest in B. He/she acts as a running control on the balance of an internal account, alerting the treasury dealer when fees are running too low or high for a particular value day C. He/she informs back office staff about which kind of confirmations are to be used D. He/she acts as a running control on the balance of a nostro, alerting the treasury dealer when funds are running too low or too high for a particular value day measured by agreed upon internal parameters

Correct Answer: D

SUN ACI - Operations Certificate - 310-010 Exam Practice Test