Question No. 1

The two choices for the settlement method utilised within a securities market are:

A'Account Settlement1 and Tumbling Settlement'

BTumbling Settlement' and 'Continuing Settlement'

C'Continuing Settlement'and'Account Settlement'

D'Rolling Settlement' and 'Account Settlement'

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Correct Answer: D

Question No. 2

The International Monetary Fund is an example of:

AA supranational organisation

BA sovereign wealth fund

CAn investment bank

DA securities market regulator

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Correct Answer: A

Question No. 3

A cash amount of GBP 5,909,658.47 lent on a Thursday until the second Monday (just over 1 week later) at a rate of 2.973%, would attract:

A7 days of interest and a cash interest amount of GBP 3369.48

B9 days of interest and a cash interest amount of GBP 4392.35

C13 days of interest and a cash interest amount of GBP 6344.51

D11 days of interest and a cash interest amount of GBP 5294.89

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Correct Answer: D

Question No. 4

Within internal books and records, the recording of the trading book on a securities trade facilitates:

AReconciliation of settled positions, per trading book and per security - between the trading department and operations

BReconciliation of settled positions, per trading book and per security - between operations and the firm's custodian

CReconciliation of trading positions, per trading book and per security - between the firm's counterparty and the firm's custodian

DReconciliation of trading positions, per trading book and per security - between the trading department and operations

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Correct Answer: D

Question No. 5

A 'put' option on a bond allows:

AThe stock exchange to force the bondholder to redeem the bonds prior to the bond's scheduled maturity date

BThe regulator to force the issuer to redeem the bonds prior to the bond's scheduled maturity date

CThe bondholder to redeem their bonds prior to the bond's scheduled maturity date

DThe bond issuer to force redemption of bonds prior to the bond's scheduled maturity date

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Correct Answer: C

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