How could he hedge his balance sheet exposure in the FRA market?

Correct Answer for the Question – How could he hedge his balance sheet exposure in the FRA market? is given below If a dealer has a 6-month USD asset and a 3-month USD liability, how could he hedge his balance sheet exposure in the FRA market? Buy 3×6 Sell 3×6 Buy 0x6D. Sell 6×9 Correct Answer … Read more

A USD deposit traded in London between two German banks is cleared:

Correct Answer for the Question – A USD deposit traded in London between two German banks is cleared: is given below A USD deposit traded in London between two German banks is cleared: Wherever the parties agree In London In NewYorkD. In Frankfurt Correct Answer The Correct Answer for this Question is In NewYorkD. In Frankfurt … Read more

What are the 6-month EUR/CHF forward points?

Correct Answer for the Question – What are the 6-month EUR/CHF forward points? is given below You are quoted the following market rates: spot EUR/CHF 1.1005 6M (180-day) EUR 3.45% 6M (180-day) CHF 1.25%What are the 6-month EUR/CHF forward points?ExplanationExplanation/Reference:[/showhide] 121 120 Correct Answer The Correct Answer for this Question is 121 Explanation The Question – … Read more

Complete the following sentence. If a bank has an asset repricing in 6 months funded by a liability repriced in 3 months:

Correct Answer for the Question – Complete the following sentence. If a bank has an asset repricing in 6 months funded by a liability repriced in 3 months: is given below Complete the following sentence. If a bank has an asset repricing in 6 months funded by a liability repriced in 3 months: the bank would … Read more

The Model Code stipulates that you have a right to qualify your quotes in terms of amounts:

Correct Answer for the Question – The Model Code stipulates that you have a right to qualify your quotes in terms of amounts: is given below The Model Code stipulates that you have a right to qualify your quotes in terms of amounts: if you do so when you make the price provided the amounts are … Read more

Which type of repo is “double dipping” a risk?

Correct Answer for the Question – Which type of repo is “double dipping” a risk? is given below In which type of repo is “double dipping” a risk? Delivery repo HIC repo To-party repo “Double dipping” is never a risk in any type of repo Correct Answer The Correct Answer for this Question is HIC repo … Read more

The Liquidity Coverage Ratio imposed by Basel III requires a bank:

Correct Answer for the Question – The Liquidity Coverage Ratio imposed by Basel III requires a bank: is given below The Liquidity Coverage Ratio imposed by Basel III requires a bank: to keep enough highly liquid assets to cover its net liabilities for the next 10 days to guard against severe liquidity stress to keep enough … Read more

Which of the following is not transferable?

Correct Answer for the Question – Which of the following is not transferable? is given below Which of the following is not transferable? Euro certificate of deposit US Treasury bill CP Call deposit Correct Answer The Correct Answer for this Question is Call deposit Explanation The Question – Which of the following is not transferable? has … Read more

In interbank trading, if a dealer is calling “off” at the same time as the broker is hitting a price:

Correct Answer for the Question – In interbank trading, if a dealer is calling “off” at the same time as the broker is hitting a price: is given below In interbank trading, if a dealer is calling “off” at the same time as the broker is hitting a price: no transaction should be concluded and the … Read more