3I0-013

3I0-013 practice questions, page 11 of 16, with answer review and explanations.

Question 51

Most non deliverable forwards (NDFs) are cash-settled in:

  1. GBP
  2. USD
  3. CHF
  4. EUR

Question 52

What information is not explicitly confirmed between the two counterparties of a FX swap transaction using a MT 300?

  1. The rate
  2. The amount
  3. The swap points
  4. Settlement information

Question 53

Which of the following statements apply to an FX Swap?

  1. It consists of two separate transactions, dealt with two different counterparties.
  2. It replaces a pair of foreign exchange transactions.
  3. It fully eliminates counterparty risk.
  4. It reduces credit risk with the counterparty, as compared to money market deals.

Question 54

Which interest rates are used to calculate the exchange rate of an outright transaction value tomorrow (over tom)?

  1. The overnight interest rates of both currencies
  2. The spot next interest rates of both currencies
  3. The one week interest rates of both currencies
  4. The torn next interest rates of both currencies

Question 55

Your FX swap dealer sold and bought 2 months USD/CHF 10,000,000.00; rates were set to 0.9300 against 0.9285. What payment is your bank expecting in two months from now?

  1. CHF 9,300,000.00
  2. CHF 10,770,059.24
  3. CHF 9,285,000.00
  4. USD 10,000,000.00