Free Securities Operations Foundation Qualification (SOFQ) Exam SOFQ Exam Practice Test

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:

• 144 days and USD 786,600.00
• 174 days and USD 950,475.00
• 141 days and USD 770,212.50
• 171 days and USD 934,087-50

From the perspective of one party to a securities trade, Free of Payment settlement without risk means:

• Delivering an asset to the counterparty prior to receipt of the contra asset from the counterparty
• Simultaneously exchanging securities and cash with the counterparty
• Delivering an asset to the counterparty following successful exchange of trade confirmations
• Receiving the counterparty's asset before instructing release of the contra asset

The calculation of profit and loss for securities includes:

• Realised (potential) P&Land Unrealised (actual) P&L
• Realised (projected) P&L and Unrealised (authentic) P&L
• Realised (predicted) P&L and Unrealised (likely) P&L
• Realised (actual) P&Land Unrealised (potential) P&L

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

• 'Account Settlement1 and Tumbling Settlement'
• Tumbling Settlement' and 'Continuing Settlement'
• 'Continuing Settlement'and'Account Settlement'
• 'Rolling Settlement' and 'Account Settlement'

The integrity of internal books & records for securities is proven by ensuring:

• The total ownership position is equal to the sum of open and closed trades with counterparties
• The total settled position is equal to the sum of open trades and trades with a future value date
• The total ownership position is equal to the sum of the settled positions plus/minus open trades with counterparties
• The total settled position is equal to the sum of open and closed trades with counterparties

'Sub-custodian' is a term that is applicable to:

• International central securities depositories
• Global custodians
• Local custodians
• National central securities depositories

The following are examples of money market instruments:

• Zero coupon bonds and Floating-rate notes
• Convertible bonds and Mortgage-Backed Securities
• Fixed-rate bonds and Step-up bonds
• Commercial Paper and Certificate of Deposit

'ISO' stands for:

• Invention of Standards for Organisations
• Intercontinental Symposium of Organisations
• International Organisation for Standardisation
• Intraterritorial Organisation of Securities

The term 'SSI' stands for:

• Standing Settlement Instruction
• Standard Securities Instruction
• Settlement Standard Instruction
• Securities Standing Instruction

Accrued interest is designed to:

• Compensate the buyer of an interest-bearing bond for interest earned, (but not paid) since the previous coupon payment date
• Compensate the seller of an interest-bearing bond for interest earner, (but not paid) relating to the next coupon payment date
• Compensate the buyer of an interest-bearing bond for interest earned, (but not paid) relating to the next coupon payment date
• Compensate the seller of an interest-bearing bond for interest earned, (but not paid) since the previous coupon payment date