As far as fineness and weight are concerned, what are the London Bullion Market Association (LBMA) requirements for a "good delivery bar"?

A. at least 995/1000 pure gold; weight between 350 and 430 fine ounces

B. minimum 999.9/1000 pure gold; weight between 350 and 430 fine ounces

C. at least 995/1000 pure gold; weight of 400 fine ounces

D. minimum 995/1000 pure gold; weight of 400 fine ounces

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

A. the bank would benefit from higher interest rates

B. the bank could hedge this interest rate risk with a 3x6 derivative

C. the bank will make mark-to-market losses if rates decrease

D. the bank could hedge this interest rate risk by selling a 6x9 derivative

A forward-forward lender has an exposure to the risk of:

A. Higher interest rates

B. Lower interest rates

C. Flattening yield curve

D. Parallel shift downwards in the yield curve

Principals are allowed to:

A. visit a broker's dealing room to arrange or confirm deals

B. visit a broker's dealing room with the permission of the management of both parties

C. deal from within a broker's dealing room with the permission of the broker's management

D. place an order with a broker from within the same broker's office

As to general risk management principles, the Model Code mentions that the organizationalstructure should ensure independent risk management and controls. Which one of the following is not among those controls?

A. open and effective communication channels between all levels of staff and cross-functions should be maintained.

B. regular internal audits should be carried out together with trading and risk management to ensure early identification of internal control weaknesses

C. complete segregation of duties between the front, middle and back office activities

D. a separate system for independent monitoring to ensure compliance with the risk management framework should be in place

Which one of the following is a major objective of ACI-The Financial Markets Association?

A. to promote globalization and deregulation of the financial markets

B. to maintain the professional level of competence and to disseminate a high level of ethical and professional behavior

C. to act as the official international market regulator in the absence of government regulation

D. to become the sole global corporation of wholesale financial market professionals

Which of the following definitions of a nostro account is correct?

A. A nostro account is an account held by a bank in a foreign country in the banks domestic currency.

B. A nostro account is an account held by a bank in a foreign country for cash collateralising OTC derivative positions with banks in that country.

C. A nostro account is an account held by a bank in a foreign country in the currency of that country.

D. A nostro account is an account held by a bank in its home country in a foreign currency.

If spot AUD/USD is quoted to you as 0.7406-09. How many AUD would you receive in exchange for USD 5,000,000 if you dealt on the price?

A. 3,704,500

B. 6,748,549

C. 3,703,000

D. 6,751,283

Cable is quoted at 1.6075-80 and you say "5 yours!" to the broker. What have you done?

A. Sold USD 5 million at 1.6075

B. Sold GBP 5 million at 1.6075

C. Bought GBP 5 million at 1.60B0

D. Bought USD 5 million at 1.6080

In the unforeseen event that a particular maturity date is declared a public holiday, what is normal market practice for spot FX?:

A. Extend the contract to the next business day

B. Shorten the contract to the previous business day

C. A new maturity date has to be agreed by the two parties involved

D. ACI's Committee for Professionalism decides on a case by case basis