Practice Questions

Question 1

If equity falls below the maintenance level, the client is required to:

Answer 1

Bring equity back to original margin

Question 2

If a CPO has managed one pool for the past 10 years, they are required to disclose performance history for:

Answer 2

the past 5 years

Question 3

When is a market technically strong?

Answer 3

When prices and open interest are going up

Question 4

What is included in carrying charges?

Answer 4

Storage, insurance, and interest

Question 5

Parties subject to complaints by NFA are known as:

Answer 5

Respondents

Question 6

If market interest rates increase, bond prices will:

Answer 6

Decrease

Question 7

A multi-part order, where one part is canceled if the other part is executed, is called:

Answer 7

an OCO order

Question 8

If a bond trades at a premium, the market interest rate will:

Answer 8

Decrease

Question 9

Buying March wheat on CME and selling July wheat on CME is an example of which type of spread?

Answer 9

Intramarket or Interdelivery Spread

Question 10

Buying gold on COMEX (US delivery) and selling gold on ICE (UK delivery) is an example of which type of spread?

Answer 10

Intermarket Spread

Question 11

If you short T-note futures and go long T-bond futures, the yield curve will:

Answer 11

Flatten

Question 12

If you long T-note futures and short T-bond futures, the yield curve will:

Answer 12

Steepen