It must be processed once a year

Brokers’ bills should be reconciled during the night when no other system is running

Brokers’ bills must be reconciled promptly at month-end prior to payment

The existence of a single reference currency for all the brokers with whom your institution is dealing

London

Frankfurt

New York

Hong Kong

The face value of 5,000,000.00

More than 5,000,000.00

Less than 5,000,000.00

Cannot decide based on the information supplied

The taping of conversations between counterparties

Model signing-off and implementation controls

The separation between front/back office duties

The existence of contingency plans

Derivatives brokers significantly over-charged their clients

Institutions did not understand the leverage of their transactions

Money managers engaged in intra-day trading

Money managers embezzled money using derivatives

It need not be confirmed between the counterparties as the broker confirms it immediately with both counterparties

It should also be confirmed directly between the two counterparties

It is important to note that broker confirmations are bilateral confirmations between the principals of the trade

The dealer should obtain acknowledgement that the deal has been agreed to but may assume agreement to the trade in the absence of such acknowledgement

Never remunerated

Remunerated at the EONIA rate

Remunerated at the rate of the deposit facility

Remunerated at the main refinancing rate

A future rate agreement involving two different currencies

An interest rate agreement where buyer and seller will exchange an interest rate differential at a given date in the future

An interest rate to be applied to a loan or deposit that begins and matures in the future

An agreement to exchange cash flows starting on a specific date in the future

Are commonly used to register off-balance sheet movements

Are used to book internal tax related items

Generally mirror the nostro statements

Are reserved for audit and compliance purposes only

Is higher than its face value if, and only if, its coupon rate is higher than its yield to maturity on the coupon date

Is higher than its face value if, and only if, its coupon rate is lower than its yield to maturity on the coupon date

Is lower than its face value if, and only if, its coupon rate is higher than its yield to maturity on the coupon date

Is always higher than its face value