QUESTION 25

1. The biggest strategic error made by Barings Bank in its global futures trading division was:

   	a.	Having Nick Leeson incharge of both trading (front office) and the accounting/settlements division (back office).
   	b.	Establishing a futures trading subsidiary in Singapore, regulated by the Monetary Authority of Singapore.
   	c.	Marketing capital markets products to institutional investors in Singapore
   	d.	A & B
   	e.	A, B & C

QUESTION 24

1. An example of a major emerging market central bank whose currency rose more than 7% against the US dollar in 2022 because it immediately responded to inflation by raising its policy interest rate from 2% in 13.75% one year before the Powell Fed made its first rate hike in March 2022 is:

   	a.	Pakistan
   	b.	Turkey
   	c.	Brazil
   	d.	China
   	e.	India

QUESTION 23

1. The collapse of Bahamas based FTX, the worlds second largest crypto currencies exchange has triggered withdrawal orders from clients in offshore exchanges all over the world. This is an example of:

   	a.	Contagion risk
   	b.	Recession risk
   	c.	Inflation risk
   	d.	Cross currency risk
   	e.	Network risk

QUESTION 22

1. Which of the following statements about the US Treasury bond market is inaccurate?

   	a.	The bond market yield curve is set to be positively sloped
   	b.	Foreign central banks, sovereign funds and institutional investors own $14 trillion in the US Treasury bills, notes and bonds.
   	c.	An increase in US Federal government (Uncle Sam) financing needs means the US Treasury auctions more bills, notes and bonds in a given year to finance the US budget deficit.
   	d.	The $24 trillion US Treasury bond is the largest in the world.
   	e.	Short term US Treasury bill and money markets are heavily influenced by Federal Reserve monetary policy.

QUESTION 21

1. Which of the following is an inaccurate statement about the emergence of Bahrain as the first banking/financial hub in the Gulf in the mid-1970s?

   	a.	Bahrain benefited from the virtual destruction of Beirut in the Lebanese civil war that began in 1975.
   	b.	Offshore banking units (OBUs) are allowed to take deposits and make loans in the local Bahraini dinar money market.
   	c.	Bahrain benefited from its time zone location as a hub for FX trading between Singapore/Hong Kong and London.
   	d.	The Bahrain Monetary Authority adopted UK style regulatory standards and attracted 500+ global financial institutions to the island.
   	e.	Bahrain benefited from the reluctance of Saudi Arabian Monetary Authority to prevent the internationalization of Saudi real, hence loan syndication and bond issues for major Saudi corporates were negotiated/executed in Bahrain.