3I0-013

3I0-013 practice questions, page 12 of 16, with answer review and explanations.

Question 56

A month ago, a customer placed NZD 100,000.00 at 2.00% on a time deposit for 90 days. Today, 30 days later, he requests an anticipated close of his deposit. 2 and 3 month interbank rates are 2.10% bid and 2.20% offered. What do you do?

  1. You agree and pay back to the customer the capital plus 2.00% interest calculated on 30 days
  2. You agree and pay back to the customer the capital plus 2.00% interest on 30 days less your refinancing costs of 0.20% calculated on 30 days
  3. You agree and pay back to the customer the capital plus 2.00% interest on 30 days less your refinancing costs of 0.10% calculated on 60 days
  4. You agree and pay back to the customer the capital plus 2.00% interest on 90 days minus the actualization of this amount at 2.20% calculated over 60 days

Question 57

If the 90-day rate is 3.10% and the 180-day is 3.50%, what is the 120-day rate using straight-line interpolation?

  1. 3.20%
  2. 3.21%
  3. 3.23%
  4. 3.30%

Question 58

Which of the following are considered money market, cash or derivative instruments?

  1. Currency futures
  2. Forward FXs
  3. Currency options
  4. Forward rate agreements (FRA)

Question 59

On Friday, your trader lends GBP 10,000,000.00 overnight at 0.60%. The instructions are for repayment of principal + interest. How much would you expect to be repaid?

  1. GBP 10,000,500.00
  2. GBP 10,000,164.38
  3. GBP 10,000,493.15
  4. GBP 10,000,166.67

Question 60

A Certificate of Deposit (CD) was issued at 2.50% which you now purchase at 1.75%. What would you expect to pay?

  1. The original face value of the CD
  2. More than the originally paid value
  3. Less than the originally paid value
  4. There is too little information to decide