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3I0-008 PDF DEMO:

QUESTION NO: 1
Click on the <> Button to view the Formula Sheet.
What is the amount of the principal plus interest due at maturity on a 1-month (31-day) deposit of EUR 50 million placed at 3.67%?
A.EUR 50,152,916.70
B.EUR 50,155,849.30
C.EUR 50,158,013.90
D.EUR 50,161,888.90
ANSWER: c

QUESTION NO: 2
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Which of the following currencies is quoted on an actual/365 basis for the calculation of interest on interbank deposits in London?
A.EUR
B.JPY
C.GBP
D.CHF
ANSWER: c

QUESTION NO: 3
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What are some of the major objectives of The Model Code?
A.To clarify the roles of dealers, brokers and customers
B.To promote a high level of ethical, professional behaviour
C.To act as a guide in the absence of government regulation
D.All of the above
ANSWER: d

QUESTION NO: 4
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Although The Model Code discourages the extension of forward FX contracts at their historic rates, one of the conditions required for this is:
A.Prior management approval has been sought.
B.They are executed within six months.
C.They are extended for not more than one year.
D.All of the above.
ANSWER: a

QUESTION NO: 5
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The extension of an off-market rate could have the following implications:
A.An unauthorised extension of credit to the counterparty.
B.Deferring a loss to a future date.
C.Deferring an income to a future date.
D.All of the above.
ANSWER: d

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Updated: May 27, 2022