Commission paid by both parties at rates agreed beforehand
B.
A fee paid by the seller
C.
Bid/offer spread
D.
A share of the bid/offer spread
Answer:
A
Question 41
What is a Vostro account?
Options:
A.
Your account at another bank
B.
A foreign bank’s account in your bank in your domestic currency
C.
An account in your bank used for internal transactions
D.
A customer’s account at your bank
Answer:
B
Question 42
The intrinsic value of a long call option:
Options:
A.
Falls and rises with the price of the underlying commodity, but is always positive
B.
Rises if the price of the underlying commodity falls and vice versa
C.
Depends solely on the volatility of the price of the underlying commodity
D.
Becomes negative if the market price of the underlying commodity falls below the strike price of the option
Answer:
A
Question 43
To curb attempted fraud, banks should:
Options:
A.
Require greater vigilance by the management and staff.
B.
Take particular care when the beneficiary is a third party to the deal.
C.
Ensure that details of all telephone deals which do not include pre-agreed standard settlement instructions are confirmed by telex or similar means without delay.
