1|Page
CISI Securities Exam || COMPLETE EXAM WITH
QUESTIONS AND ANSWERS||VERIFIED EXAM||
LATEST EXAM
What is the difference between cross rate and direct rate?
(2) - ANSWER-A direct rate involves one domestic
currency, while a cross rate involves two foreign
currencies that are calculated through a third currency eg
(EUR/JPY, GBP/AUD, AUD/NZD, and USD/CHF)
What are French gov bonds called, when are coupon
interest payments paid and when is settlement? (2) -
ANSWER-OATs, PAID ANNUALLY and T+2
What are the different German gov bonds called, when are
the interest payments paid, and when is settlement? (2) -
ANSWER-- Schatz < 2 years
- Bobl 5 years
- Bund > 10 years
PAID ANNUALLY
T+2
,2|Page
What are the names of the different US bonds, their
maturities, and their settlement? (2) - ANSWER-- T-bills,
less than a year and T+0
- T-notes, 2-10 years and T+1
- T-bonds, > 10 years and T+1
What is meant by ex-dividend?(2) - ANSWER-This is the
day on which a stock begins trading without the dividend.
If you buy the stock on or after this day, you are not
entitled to the dividend payment. In other words, the stock
is trading "ex" or "without" the dividend.
What is meant by cum-dividend?(2) - ANSWER-This is the
opposite of ex-dividend. It refers to a stock that is trading
with the dividend included. If you buy the stock before the
ex-dividend date, you are entitled to receive the dividend
payment, and the stock is said to be trading "cum" or
"with" the dividend.
What's the difference between floating and fixed charge?
(2) - ANSWER-A floating charge is created over a
changing pool of assets, while a fixed charge is created
over specific assets that cannot be sold or used without
the lender's consent until the debt is fully repaid.
, 3|Page
What are bonds issued with a fixed charge referred to
as?(2) - ANSWER-Debenture
What is the purpose of an SPV?(2) - ANSWER-A legal
entity is set up for a specific purpose or project to limit risk
exposure and protect the interests of investors or lenders.
They can hold assets, enter contracts, and raise capital
independently of the sponsor.
What are covered bonds?(2) - ANSWER-Debt securities
backed by a pool of high-quality assets, like mortgages or
public sector loans. They are issued by banks and other
financial institutions and are considered lower-risk
investments because they are backed by assets that
generate steady cash flows.
What are the different types of trustees in structured
finance transactions?(2) - ANSWER-- Note trustees:
Represent the interests of securities holders.
- Security trustees: Hold securities or properties for the
benefit of secured parties.
- Share trustees: Hold shares in an issuing SPV to ensure
off-balance-sheet treatment.
- Successor trustees: Replace a trustee with conflicts of
interest or cannot continue due to work requirements.
CISI Securities Exam || COMPLETE EXAM WITH
QUESTIONS AND ANSWERS||VERIFIED EXAM||
LATEST EXAM
What is the difference between cross rate and direct rate?
(2) - ANSWER-A direct rate involves one domestic
currency, while a cross rate involves two foreign
currencies that are calculated through a third currency eg
(EUR/JPY, GBP/AUD, AUD/NZD, and USD/CHF)
What are French gov bonds called, when are coupon
interest payments paid and when is settlement? (2) -
ANSWER-OATs, PAID ANNUALLY and T+2
What are the different German gov bonds called, when are
the interest payments paid, and when is settlement? (2) -
ANSWER-- Schatz < 2 years
- Bobl 5 years
- Bund > 10 years
PAID ANNUALLY
T+2
,2|Page
What are the names of the different US bonds, their
maturities, and their settlement? (2) - ANSWER-- T-bills,
less than a year and T+0
- T-notes, 2-10 years and T+1
- T-bonds, > 10 years and T+1
What is meant by ex-dividend?(2) - ANSWER-This is the
day on which a stock begins trading without the dividend.
If you buy the stock on or after this day, you are not
entitled to the dividend payment. In other words, the stock
is trading "ex" or "without" the dividend.
What is meant by cum-dividend?(2) - ANSWER-This is the
opposite of ex-dividend. It refers to a stock that is trading
with the dividend included. If you buy the stock before the
ex-dividend date, you are entitled to receive the dividend
payment, and the stock is said to be trading "cum" or
"with" the dividend.
What's the difference between floating and fixed charge?
(2) - ANSWER-A floating charge is created over a
changing pool of assets, while a fixed charge is created
over specific assets that cannot be sold or used without
the lender's consent until the debt is fully repaid.
, 3|Page
What are bonds issued with a fixed charge referred to
as?(2) - ANSWER-Debenture
What is the purpose of an SPV?(2) - ANSWER-A legal
entity is set up for a specific purpose or project to limit risk
exposure and protect the interests of investors or lenders.
They can hold assets, enter contracts, and raise capital
independently of the sponsor.
What are covered bonds?(2) - ANSWER-Debt securities
backed by a pool of high-quality assets, like mortgages or
public sector loans. They are issued by banks and other
financial institutions and are considered lower-risk
investments because they are backed by assets that
generate steady cash flows.
What are the different types of trustees in structured
finance transactions?(2) - ANSWER-- Note trustees:
Represent the interests of securities holders.
- Security trustees: Hold securities or properties for the
benefit of secured parties.
- Share trustees: Hold shares in an issuing SPV to ensure
off-balance-sheet treatment.
- Successor trustees: Replace a trustee with conflicts of
interest or cannot continue due to work requirements.
