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Certainly! Here are Questions 50 to 95 nonstop, each brand new and unique, formatted as requested: Question 50. What does “mark-to-market” mean in swap valuation? A) Assign nominal value B) Value swap using historical prices C) Revalue swap using current market rates D) Set fixed payment amount Answer: C Explanation: Mark-to-market means updating the swap’s value according to prevailing market rates. Question 51. Which entity is responsible for reporting swap transactions under Dodd-Frank? A) Swap dealer B) Central counterparty C) End-user D) Broker Answer: A Explanation: Under Dodd-Frank, swap dealers must report swap transactions for regulatory oversight. Question 52. What is an ISDA Schedule? A) Payment timetable B) Custom terms to ISDA Master Agreement C) List of CCPs D) Margin requirements Answer: B Explanation: An ISDA Schedule includes negotiated terms supplementing the ISDA Master Agreement.
Question 53. What is the primary purpose of a swap confirmation? A) Document legal terms B) Record payment amounts C) Confirm trade execution D) Settle variation margin Answer: C Explanation: Swap confirmations provide written evidence of executed swap trades. Question 54. Which regulatory body oversees swap markets in the US? A) SEC B) CFTC C) Federal Reserve D) OCC Answer: B Explanation: The CFTC regulates swap markets to ensure compliance and transparency. Question 55. What is a swaption? A) Option to enter a swap B) Option to buy currency C) Option to receive equity D) Option to hedge credit Answer: A Explanation: A swaption gives the holder the right to enter a swap at a future date.
A) Cash payment only B) Delivering defaulted bond C) Margins transferred D) No settlement Answer: B Explanation: Physical settlement involves the buyer delivering the defaulted bond for payment. Question 60. What is cash settlement in CDS? A) Exchange of bonds B) Payment of agreed amount C) Delivery of currency D) No payment Answer: B Explanation: In cash settlement, the buyer receives the difference between market and par value. Question 61. Which swap allows synthetic exposure to an asset without owning it? A) TRS B) IRS C) CDS D) Commodity swap Answer: A Explanation: Total Return Swaps (TRS) provide synthetic exposure to asset price and income. Question 62. What is the main risk in an equity swap? A) Commodity price volatility
B) Credit default C) Equity price risk D) FX risk Answer: C Explanation: Equity swaps expose the parties to price risk of the underlying equity. Question 63. What is the role of a swap dealer in risk management? A) Hedge own exposure B) Intermediary between parties C) Settle all payments D) Invest in equities Answer: B Explanation: Swap dealers act as intermediaries and help manage risk for both sides. Question 64. What is bilateral netting in swaps? A) Netting among multiple parties B) Netting payments between two parties C) Clearing through CCP D) Netting by central bank Answer: B Explanation: Bilateral netting reduces the total payments exchanged by offsetting obligations. Question 65. In swap clearing, what is novation? A) Assigning swap to third party B) CCP becomes counterparty to both parties
D) Only affects swap rate Answer: B Explanation: Non-parallel shifts alter the value of fixed and floating legs differently, impacting MTM. Question 69. What is the primary risk in commodity swaps? A) FX volatility B) Commodity price volatility C) Credit default D) Equity market risk Answer: B Explanation: Commodity swaps face price risk from the underlying traded commodity. Question 70. What is a “stub period” in swap payments? A) First payment period less than full interval B) Final period with extended duration C) Period with double payment D) No payment period Answer: A Explanation: Stub periods are shortened payment intervals at the start or end of a swap. Question 71. What is the key benefit of central clearing for swaps? A) Lower transaction fees B) Reduced counterparty risk C) Increased confidentiality D) Fixed payment schedules
Answer: B Explanation: Central clearing through a CCP mitigates counterparty default risk. Question 72. What is “portfolio reconciliation” in swap risk management? A) Matching margins B) Comparing trade records between parties C) Calculating swap NPV D) Recording payment frequencies Answer: B Explanation: Portfolio reconciliation ensures both sides agree on trade terms and valuations. Question 73. What is the role of a confirmation agent in swaps? A) Executes trades B) Verifies trade details C) Provides collateral D) Sets payment schedules Answer: B Explanation: Confirmation agents match and verify trade details, reducing operational risks. Question 74. What is a “coupon” in swap terminology? A) Margin payment B) Periodic interest payment C) Principal repayment D) Fixed payment schedule Answer: B
Question 78. What is the impact of increasing notional principal in an accreting swap? A) Higher payment amounts over time B) Lower payment amounts over time C) Fixed payment amounts D) Decreasing payment frequency Answer: A Explanation: As notional grows, payment amounts increase accordingly. Question 79. What is the main reason for using a basis swap? A) Hedge fixed rate risk B) Hedge floating rate benchmark differences C) Hedge credit risk D) Hedge equity risk Answer: B Explanation: Basis swaps help manage exposure to different floating rate benchmarks. Question 80. What is a “payment date” in swap contracts? A) Date contract is signed B) Date interest is exchanged C) Date notional is exchanged D) Date swap expires Answer: B Explanation: Payment date is when swap payments are exchanged between parties.
Question 81. What does the term “effective date” refer to in a swap? A) Date contract is negotiated B) Date first payment occurs C) Date swap obligations start D) Date swap expires Answer: C Explanation: Effective date is the commencement of payment and contractual obligations. Question 82. What is the role of a “swap broker”? A) Takes principal risk B) Matches buyers and sellers C) Becomes counterparty D) Sets market rates Answer: B Explanation: Swap brokers facilitate trades by matching counterparties in the market. Question 83. What is “novation” in swap clearing? A) Assigning swap to new party B) CCP replaces original counterparties C) No change in counterparty D) Netting payments Answer: B Explanation: Novation is the legal process where CCP becomes the new counterparty to both sides. Question 84. Which swap involves exchanging fixed payments for commodity price-linked payments?
B) Sensitivity to interest rate changes C) Sensitivity to FX changes D) Credit spread changes Answer: B Explanation: Delta measures how much swap value changes as interest rates move. Question 88. What is the main purpose of a cross-currency swap? A) Hedge commodity prices B) Exchange interest rates in different currencies C) Hedge equity returns D) Avoid central clearing Answer: B Explanation: Cross-currency swaps exchange interest payments in different currencies. Question 89. What is “counterparty risk” in swaps? A) Risk of market movements B) Risk that other party defaults C) Risk of FX changes D) Risk of documentation error Answer: B Explanation: Counterparty risk is the chance the other party will not honor their obligations. Question 90. What is the “termination date” in a swap contract? A) Date contract is signed B) Date payments start
C) Date swap ends D) Date notional is exchanged Answer: C Explanation: Termination date marks the end of swap obligations. Question 91. What does “cash settlement” mean in swaps? A) Exchange of notional principal B) Payment of market value difference C) Physical delivery of asset D) No payment Answer: B Explanation: Cash settlement pays the market value difference at the end or early termination. Question 92. What is a “forward starting swap”? A) Swap with immediate start B) Swap beginning at a future date C) Swap with variable notional D) Swap with principal exchange Answer: B Explanation: A forward starting swap commences at a future date specified in the contract. Question 93. What is “margining” in swaps? A) Adjusting notional B) Posting collateral against market movements C) Making interest payments
Answer: A Explanation: Triangle breakouts typically mark the start of new trends. Question 102. What is the effect of changing the reversal amount from 3 to 5 boxes? A) More sensitive chart B) Less sensitive chart, fewer reversals plotted C) Increased chart noise D) Immediate trend changes Answer: B Explanation: A larger reversal amount further filters out minor price changes. Question 103. What is the primary focus of Elliott Wave Theory? A) Volume analysis B) Market cycles and crowd psychology C) Only price action D) Time-based charting Answer: B Explanation: Elliott Wave Theory examines how market cycles reflect investor psychology. Question 104. What is the basic structure of a motive wave in Elliott Wave Theory? A) 3-wave pattern B) 5-wave pattern C) 7-wave pattern D) 2-wave pattern Answer: B
Explanation: Motive waves consist of five subwaves: three impulse and two corrective. Question 105. Which waves in the 5-wave Elliott sequence are impulse waves? A) Waves 1, 3, and 5 B) Waves 2, 4, and 5 C) Waves 1, 2, and 3 D) Waves 2, 3, and 4 Answer: A Explanation: Waves 1, 3, and 5 move in the direction of the main trend. Question 106. Which waves in the 5-wave Elliott sequence are corrective? A) Waves 1, 3, and 5 B) Waves 2 and 4 C) Waves 2, 3, and 4 D) Waves 1 and 5 Answer: B Explanation: Waves 2 and 4 move against the main trend. Question 107. What is the structure of a basic corrective wave sequence in Elliott Wave Theory? A) 5-wave B) 3-wave (A-B-C) C) 7-wave D) 2-wave Answer: B Explanation: Corrective waves are typically three-wave A-B-C patterns.
Question 111. What is Rule 3 of Elliott Wave Theory? A) Wave 4 enters Wave 1 price territory B) Wave 4 never enters Wave 1 price territory C) Wave 2 never retraces more than 50% D) Wave 5 must be the shortest Answer: B Explanation: In impulse waves, Wave 4 does not overlap Wave 1. Question 112. What is an extension in Elliott Wave Theory? A) A wave that is significantly longer than others B) A wave that is shorter than others C) A corrective wave D) A failed wave Answer: A Explanation: Extensions are elongated impulse waves, most often seen in Wave 3. Question 113. Where are leading diagonals typically found? A) Wave 1 or Wave A B) Wave 3 or Wave C C) Wave 4 or Wave B D) Wave 5 only Answer: A Explanation: Leading diagonals occur in Wave 1 (impulse) or Wave A (correction). Question 114. In which waves do ending diagonals usually appear?
A) Wave 1 B) Wave 3 C) Wave 5 or Wave C D) Wave 2 Answer: C Explanation: Ending diagonals are wedge-shaped patterns in Wave 5 or C. Question 115. What is the typical structure of a zigzag corrective wave? A) 3- 3 - 5 B) 5- 3 - 5 C) 2- 4 - 6 D) 1- 5 - 7 Answer: B Explanation: Zigzags consist of a 5- 3 - 5 subwave sequence. Question 116. Which corrective pattern has a 3- 3 - 5 structure? A) Zigzag B) Flat C) Triangle D) Diagonal Answer: B Explanation: Flats are characterized by a 3- 3 - 5 subwave arrangement. Question 117. What is the wave structure of Elliott Wave triangles? A) 5- 3 - 5
