The following is true about proprietary trading except: A Most investment banks have a Chinese wall to separate proprietary traders from client traders B Activities of proprietary trading is considered part of the banking book C Proprietary traders are market-makers so earn income based on the bid-ask spread D Proprietary trading can generate significant revenues for banking institutions
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The following is true about proprietary trading except:
A Most investment banks have a Chinese wall to separate proprietary traders from client traders
B Activities of proprietary trading is considered part of the banking book
C Proprietary traders are market-makers so earn income based on the bid-ask spread
D Proprietary trading can generate significant revenues for banking institutions
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- QUESTION 1 The following is true about proprietary trading except: Most investment banks have a Chinese wall to separate proprietary traders from client traders Activities of proprietary trading is considered part of the banking book Proprietary traders are market-makers so earn income based on the bid-ask spread Proprietary trading can generate significant revenues for banking institutions QUESTION 2 The following methods are used to measure market risk in the industry, except Regression method Historical simulation method Delta-normal method Monte Carlo methodWhich of the following statements is CORRECT? A. Foreign exchange dealers earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase. B. Training Speculators earn a profit by a bid - ask spread on currencies they purchase and sell. C. Currency trading lacks profitability for large commercial and investment banks but is maintained as a service for corporate and institutional customers. D. Arbitragers seek to profit from simultaneous exchange rate differences in different markets.Which of the following is NOT the correct about Islamic banking products? Select one: O A. Profit sharing percentages between bank and depositor are determined in mudharabah contract. B. Both methods used in mudharabah contacts give the same profit for the bank. C. In Mudharabah contracts, bank has two methods in distributing profits; these are separate investment account method (SIAM) and pooling method (PM). D. Mudharabah is a profit-sharing contract between depositors and Islamic Bank.
- The is an over-the-counter market with participants (buyers and sellers) located in major commercial and investment banks around the world. OÀ. purchasing power parity O B. exchange rate parity OC. interest rate market O D. foreign exchange marketWhich of the following is true ? Select one : a . Investment bankers earn a spread based on the success of their placements when they underwrite using a best - efforts basis. b . Investment bankers earn fees based on the success of their placement when they underwrite using firm - commitment basis. c . With best - efforts underwriting, Investment bankers actos principais because they purchase securities from the issuer and sell them at a higher price, d. An investment banker is acting as principais when a firm - commitment offering of securities . e . Answers B and C only .Subject: Islamic banking & applied finanace Describe the execution of ‘Diminishing Musharka’ in Islamic banks. Also discuss thebasic rules of this product.
- What is the role of regulators in the financial markets? Why are financial assets important to growth of an economy? In what ways do exchanges reduce contracting costs and risks? Is trading in an OTC market more risky for a trader than trading in an exchange? How so? What is the difference between Fed funds rate and the discount window rate?Which of the following is true of the current state of financial regulation for financial institutions (FIs)? Most banks can transfer risk on a greater scale and in more complex ways than before. Most FIs now conduct virtual global business, reducing the influence of very large FIs. Most global financial money and capital markets are deliberately disconnected. Most securities exchanges have required majority ownership by resident nationals.All financial intermediary institutions in the intermediation market O borrow in small denominations and lend in large borrow short and lend long buy primary securities and sell secondary securities buy from brokers and dealers and sell to the public
- Why do governments intervene in the foreign exchange market? Check all that apply: To maintain exchange rate boundaries To reduce fear in financial markets To smooth out the business cycle To smooth out exchange rate movements To earn a profit for the governmentWhich of the following statements is CORRECT? a. Hedge funds are legal in Europe and Asia, but they are not permitted to operate in the United States. b. Hedge funds have more in common with commercial banks than with any other type of financial institution. c. Hedge funds have more in common with investment banks than with any other type of financial institution. d. Hedge funds are legal in the United States, but they are not permitted to operate in Europe or Asia. e. The justification for the "light" regulation of hedge funds is that only "sophisticated" investors with high net worths and high incomes are permitted to invest in these funds, and such investors supposedly can do the necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.To minimize exposure to political risk, a multinational firm may establish a joint venture with a local entrepreneur or a group of multinationals, or A. purchase an insurance policy from the Overseas Private Investment Corporation (OPIC). B. purchase an insurance policy from the Foreign Credit Insurance Association (FCIA). C. hedge in the Eurodollar market. D. any combination of the options.