SOFQ Online Practice Questions and Answers

A bond which permits the issuer to redeem the bond prior to its maturity date is known as a:

A. Demandable bond

B. Callable bond

C. Requestable bond

D. Askable bond

Within internal books and records, the recording of the trading book on a securities trade facilitates:

A. Reconciliation of settled positions, per trading book and per security - between the trading department and operations

B. Reconciliation of settled positions, per trading book and per security - between operations and the firm's custodian

C. Reconciliation of trading positions, per trading book and per security - between the firm's counterparty and the firm's custodian

D. Reconciliation of trading positions, per trading book and per security - between the trading department and operations

The market in which debt is issued over the long-term describes:

A. The money market

B. The foreign exchange market

C. The capital market

D. The equity market

The two choices for the settlement method utilised within a securities market are:

A. 'Account Settlement1 and Tumbling Settlement'

B. Tumbling Settlement' and 'Continuing Settlement'

C. 'Continuing Settlement'and'Account Settlement'

D. 'Rolling Settlement' and 'Account Settlement'

The date on which a securities trade is intended to settle is: A. The actual settlement date

B. The contractual trade date

C. The value date

D. The trade date

The Clearstream Group includes:

A. The ICSD 'Clearstream Banking Paris' and the NSCD 'Clearstream Banking Munich'

B. The ICSD 'Clearstream Banking Brussels' and the NCSD 'Clearstream Banking Berlin'

C. The ICSD 'Clearstream Banking Luxembourg' and the NSCD 'Clearstream Banking Frankfurt'

D. The ICSD 'Clearstream Banking Amsterdam' and the NSCD 'Clearstream Banking Luxembourg'

An example of an organisation classified as a sovereign wealth fund is:

A. United Nations

B. Xerox Corporation

C. German Government

D. China Investment Corporation

The price of a bond trade which excludes accrued interest is known as:

A. A dirty price

B. A fresh price

C. A clean price

D. A cloudy price

A S.W.I.FT. MT541 instructs a custodian to:

A. Receive securities on a Free of Payment basis

B. Receive securities on a Delivery versus Payment basis

C. Deliver securities on a Delivery versus Payment basis

D. Deliver securities on a Free of Payment basis

The number of days of accrued interest, and the cash value of accrued interest - on a trade of USD 45,000,000 World Bank 4.37% Bonds 1st December 2032, paying interest semi- annually on 1st December and Ist June, trade date 22~d October, value date 25tl October, is:

A. 144 days and USD 786,600.00

B. 174 days and USD 950,475.00

C. 141 days and USD 770,212.50

D. 171 days and USD 934,087-50