1. From our study of the ASX futures market we found:
   1. The clearinghouse becomes the counter party to the buyer and seller of each future transaction
   2. Trades are made with the dealers on the basis of their bid/offer quotes
   3. It is an example of an OTC market
   4. All of the above

2. Through the processes of margin payments, traders:
   1. Place an initial margin with the clearinghouse
   2. Deposit margins if the value of their position falls below the maintenance level
   3. All of the above are true
   4. None of the above are true

3. Our study of fixed-forfloating interest rate swap revealed:
   1. The swap rate is called the BBSW
   2. An unexpected fall in interest rates favours the floating rate payer
   3. The swap rate is a single-period fixed rate
   4. An unexpected fall in interest rates favours the fixed rate payer

4. Which of the following is NOT a reason for entering a plain vanilla swap?
   1. To provide a cheaper method of raising funds than borrowing in the preferred market
   2. To hedge an interest rate exposure
   3. To hedge an exchange rate exposure
   4. Both a&b are correct reasons