QUESTION: 89

Why are confirmations necessary?

Confirmations authenticate the transaction to the risk manager, as well as providing essential information regarding bilateral limits.
in order to authenticate the BIC-code of the counterparty when the confirmation is sent via SWIFT
in order to have the exact mailing address of the counterparty when the confirmation is sent via mail
Confirmations authenticate transactions to staff independent of the dealing room, as well as providing essential information regarding settlement.

Answer(s): D

QUESTION: 90

Which ONE of the following excerpts completes this statement of a best market practice? "Any exception to the confirmation process should be resolved..."

no later than the value date
within 2 days
within 1 week
on the day it is discovered

Answer(s): D

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QUESTION: 91

What is the advantage of instantaneous matching?

it gives the counterparty more time to cancel a deal
it reduces errors and costs
it gives front-office staff more time to process the payment orders
it increases transaction costs

Answer(s): B

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QUESTION: 92

What is the purpose of "internal cash reconciliation"?

to control the banks cash and derivative positions
to reconcile and control the cash balance for the Bank for International Settlements (BIS)
to reconcile and control the cash balance for the central bank
cash forecasting, cash collateral and cash positions control

Answer(s): D

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Free 3I0-010 Exam Braindumps (page: 24)

QUESTION: 89

QUESTION: 90

QUESTION: 91

QUESTION: 92

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