When considering interest rate risk in the banking book, retail demand deposits without fixed contractual maturity:

A. should be assumed to have zero duration

B. should be treated like other instantly variable rate liabilities, such as overnight money market borrowing.

C. should be assumed to have a low correlation with money market reference rates

D. represent a minor contributor to interest rate risk and can safely be disregarded

If you sell forward USD to a client against EUR, what is the first thing you should do to cover your exposure to exchange rate movements?

A. Sell and buy USD in the FX swap market

B. Sell USD in the spot market

C. Buy USD in the spot market

D. Buy and sell USD in the FX swap market

In all dealing conversations, the Model Code strongly recommends:

A. Dealers stick to market terminology in order to avoid the impression that they are offering an advisory or fiduciary role.

B. Dealers clarity what is being proposed rather than using any terminology that could be misinterpreted.

C. Dealers restrict themselves to terminology listed and explained in Chapter 11 of the Model Code.

D. Dealers define complex terminology in the confirmation of a deal.

What does the Model Code say about the responsibility of a broker in handling suspicious transactions?

A. Suspicious transactions should be reported by the principals.

B. Brokers need to make staff aware of the problem and exercise vigilance.

C. A broker should report any suspicions about a transaction to the other counterparty.

D. Brokers should advise clients to reject the name.

What are IMM dates?

A. The 10th of March, June, September and December.

B. The third Wednesdays of January, April, July and October.

C. The Mondays before the third Wednesdays of March, June, September and December.

D. The third Wednesdays of March, June, September and December.