MCQ Chapter 1 Flashcards
(ISWA) What is Actual/Actual basis
The actual amount of days between two dates, adjusted for leap year
(ISWA) What is Day/Day basis
12 months of 30 days each. That’s it!!
(ISWA) What is Actual/365 basis
Actual dates but assumes the year is 365 days long
What are the four common derivatives ?
Futures
Forwards
Swaps
Options
Who benefits from STP?
a. Banks, Asset Managers, Brokers, Commodity Traders (front, middle, back office), Stock Buyers and sellers
b. Banks, Asset Managers, Brokers, Commodity Traders (front, middle, back office)
c. Banks, Asset Managers, Brokers, Stock Buyers and sellers
d. Banks, Asset Managers, Commodity Traders (front, middle, back office), Stock Buyers and sellers
d. Banks, Asset Managers, Commodity Traders (front, middle, back office), Stock Buyers and sellers
What is a value date?
The date the investor should pay the consideration and take legal ownership
What is the settlement date?
Same as the value date, but adjusted for delays
What is the consideration date
The date in which the asset is received by the parties
What is the trade date?
The date that the trade is carried out
Which of the following portfolio management features is commonly offered by investment platforms?
a. Real-time currency exchange rate monitoring
b. ‘What-if’ scenario analysis
c. Automated tax return filing
d. Direct access to IPOs
b. ‘What-if’ scenario analysis
Which of the following is provided by STP solutions to help the settlement process?
They improve settlement certainty
They provide certainty of matching
They reduce transaction volumes
They improve customer service
They improve settlement certainty
Which of the following is not a type of FX transaction?
Question 1Select one:
a. Total Return Swaps
b. Spot Rate
c. Forward Transactions
d. FX Swaps
Total return swaps
Which of the following is NOT classified as a derivative?
Select one:
a. FX swaps
b. Future
c. Equity contract for difference
d. Interest rate swap
FX swaps
“Who benefits from STP?_____”
Select one:
a. Banks, Asset Managers, Brokers, Commodity Traders (front, middle, back office), Stock Buyers and sellers
b. Banks, Asset Managers, Brokers, Commodity Traders (front, middle, back office)
c. Banks, Asset Managers, Brokers, Stock Buyers and sellers
d. Banks, Asset Managers, Commodity Traders (front, middle, back office), Stock Buyers and sellers
a. Banks, Asset Managers, Brokers, Commodity Traders (front, middle, back office), Stock Buyers and sellers
Which services do Investment banks typically provide?
Select one:
a. Retail finance & advisory work, Banking, Treasury dealing, Investment management and Securities trading.
b. Corporate finance & advisory work, Investment management and Securities trading.
c. Corporate finance & advisory work, Banking, Treasury dealing Investment management and Securities trading.
d. Payment & money transmission services for business customers, Banking, Treasury dealing Investment management and Securities trading.
Corporate finance & advisory work, Banking, Treasury dealing Investment management and Securities trading.
