QUESTION: 125

The market standard legal agreement for Interest Rate Swaps is:

ISDA
ACI
SIFMA/ICMA
ICMA

Answer(s): B

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QUESTION: 126

The process used to disguise the trail of laundered funds within the financial system is known as:

Streamlining
Layering
Reinvesting
Channeling

Answer(s): A

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QUESTION: 127

Settlement risk is:

The risk that a bank makes its payment but does not receive a return payment in the exchanged currency
The risk that exchange rates move against a bank’s position
The risk a counterparty defaults on a contract and a bank has to replace that contract at adverse rates
The risk of a disaster that disables a bank’s trading floor

Answer(s): B

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In the weekend newspapers you read that one of your FX counterparties has gone into liquidation.
You have no netting or close-out agreements in place with this counterparty and remember that you have one forward deal outstanding. What is the main risk affecting your bank?

The loss of the entire principal amount of the deal
The “replacement risk”, also known as “replacement-cost risk”
The loss of the negative mark-to-market value of the deal
As the deal is in the future, there is no impact on P&L

Answer(s): C

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Free 3I0-013 Exam Braindumps (page: 33)

QUESTION: 125

QUESTION: 126

QUESTION: 127

QUESTION: 128

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