310-010 by SUN Actual Free Exam Q&As

Question 1

Which of the following characterize "delivery against payment" also known as "delivery versus payment"?

A. securities are exchanged into a defined currency B. the payment order is first blocked and then the payout of securities is processed C. delivery is insured if and only if payment occurs D. securities are first delivered and then the payment is processed

Discussion 0

Correct Answer: C Vote an answer

Question 2

Which of the following statements best describes collateral?

A. deposits placed by a commercial bank with a central bank to fulfill reserve asset ratios B. any deposit placed by an institution with another institution of a lower credit rating C. liquid assets pledged by one or both counterparties to the other to reduce credit risk D. any cross border payment of currency

Discussion 0

Correct Answer: C Vote an answer

Question 3

You are in the pub with a friend who works for another financial institution. The friend asks you for information about a mutual customer's forward foreign exchange dealing volumes. What should you do?

A. give him some of the information because the deal involves a mutual customer B. tell him you will investigate and get back to him with the information C. tell him all you know D. tell him nothing

Discussion 0

Correct Answer: D Vote an answer

Question 4

What documents and/or information should you hold in order to start an investigation?

A. From the counterparty: the dealers name and phone number. In-house: dealers name as well as the exact time the deal was processed B. From the counterparty: the trade confirmation. In-house: the trade confirmation, nostro reconciliation details, the dealing ticket and eventually dealing-system conversation printout C. From counterparty: the balance report and the trade confirmation; In-house: the dealing-system conversation printout D. From the counterparty: the trade confirmation. In-house: the open item list, nostro reconciliation details and the dealing ticket

Discussion 0

Correct Answer: B Vote an answer

Question 5

What is the deadline for a same day customer payment in EUR using TARGET?

A. 17:00 hours Central European Time (CET) B. 18:00 hours Central European Time (CET) C. 16:00 hours Central European Time (CET) D. 15:00 hours Central European Time (CET)

Discussion 0

Correct Answer: A Vote an answer

Question 6

The tenor of a bill of exchange describes:

A. the time to maturity of the bill B. the date on which the bill matures C. the original rate of the bill D. the rate at which the bill is bought

Discussion 0

Correct Answer: A Vote an answer

Question 7

Which settlement system offers the lowest risks?

A. EAF B. CLS C. TARGET D. EBA

Discussion 0

Correct Answer: B Vote an answer

Question 8

When would you use a SWIFT message type 103?

A. for a general financial institution transfer B. for a multiple general financial institution transfer C. for a customer transfer D. for a foreign exchange confirmation

Discussion 0

Correct Answer: C Vote an answer

Question 9

On 15 April 2010 you buy a bond whose coupon falls on 15 January 2010. The interest basis is 30/360. Using bond settlement T+1, how many days do you apply for the interest calculation?

A. 92 days B. 90 days C. 89 days D. 91 days

Discussion 0

Correct Answer: D Vote an answer

Question 10

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

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

Discussion 0

Correct Answer: B Vote an answer

Question 11

Your dealer has sold a 3x6 USD 10,000,000.00 FRA at 5.55%. On settlement day the 3-month (90-day) fixing is 5.45%. What would you do?

A. pay USD 2,466.40 B. receive USD 2,465.79 C. pay USD 2,465.79 D. receive USD 2,466.40

Discussion 0

Correct Answer: D Vote an answer

Question 12

In the weekend newspapers you read that one of your FX counterparties has gone into liquidation. You have no netting or close-out agreements in place with this counterparty and remember that you have one forward deal outstanding. What is the main risk affecting your bank?

A. the "replacement risk", also known as "replacement-cost risk" B. the loss of the entire principal amount of the deal C. the loss of the negative mark-to-market value of the deal D. as the deal is in the future, there is no impact on P&L

Discussion 0

Correct Answer: A Vote an answer

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