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Exam Code: 200-105
Exam Name: Interconnecting Cisco Networking Devices Part 2 (ICND2 v3.0)
Updated: Sep 02, 2017
Q&As: 204
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Exam Pass4itsure 200-105 Dumps Blog Series:
QUESTION 21 
What are the principal functionalities of interbank funds transfer systems?
A. The matching of confirmations
B. The dealing and archiving of payment orders
C. Reconciliation and correspondent banking
D. The transfer of information and settlement
 
Correct Answer: D 
QUESTION 22  
Which of the following currencies is eligible for CLS settlement?
A. ZAR
B. TRY
C. MYR

D. CNYCorrect Answer: A 
QUESTION 23 
A message received and accepted by SWIFT will be acknowledged with:
A. OK
B. ACK
C. MAK
D. NAK
 
Correct Answer: B
QUESTION 24 
Which of the following processes are offered by the CLS settlement system?
A. The close-out process
B. The customer matching process
C. The settlement process
D. The securities lending process
]
Correct Answer: C 
QUESTION 25 
CHIPS is the name commonly used for the domestic clearing system in:
A. London
B. Frankfurt
C. New York
D. Hong Kong

Correct Answer: C 
QUESTION 26 
You have five outstanding amounts with five different values. Which of the following should be investigated
first?
A. The most recently processed deal
B. The counterparties in your own country
C. The counterparty which claims first
D. Those positions with the highest loss potential
 
Correct Answer: D
QUESTION 27
What is the primary role of the position-keeper in a dealing room?
A. To keep the multilateral limits updated
B. To invest funds at the highest available interest rate
C. To keep the balance or position of the accounts or nostros in each currency representing the accounts
held by the bank's agents
D. To keep the management informed about interest rate developments
 
Correct Answer: C 
QUESTION 28 
What is an essential feature of nostro reconciliations?
A. That a daily nostro reconciliation report is sent out to the correspondent bank
B. That they are performed before the next business day
C. That they are performed in a timely and efficient way
D. That open items are booked on an internal account
 
Correct Answer: C
QUESTION 29 
You have two nostro accounts in USD, one account is long USD 5,000,000.00 and the other is short USD
5,000,000.00. What action should be taken to reconcile the accounts?
A. No action is required. The credit interest earned on the credit balance will offset the debit interest
incurred on the short balance
B. You should borrow USD 5,000,000.00 to cover the short balance and leave the long balance as it is
C. You should lend the surplus USD 5,000,000.00 in order to compensate the overdraft charges on the
short balance with the interest earned on the loan
D. You should instruct the bank with the long balance to transfer USD 5,000,000.00 to your nostro
account at the other bank

Correct Answer: D 
QUESTION 30 
Which kind of report is a reconciliation system unable to produce?
A. A "probable matched items report" (a report in which most fields match but there are some
discrepancies)
B. A "calculated fees report" (a report of the expected fees owed)
C. A "matched items report" (a report of all fields that match)
D. An "unmatched items report" (a report of items for which one is unable to find matches)
 
Correct Answer: B 
QUESTION 31
What is the function of the cash positions keeper?
A. He/she acts as a running control on the balance of a nostro, alerting the treasury dealer when funds
are running too low or too high for a particular value day measured by agreed upon internal parameters
B. He/she assists the dealer in deciding which currency to invest in
C. He/she informs back office staff about which kind of confirmations are to be used
D. He/she acts as a running control on the balance of an internal account, alerting the treasury dealer
when fees are running too low or high for a particular value da

Correct Answer: A 
QUESTION 32 
What is the most important feature of a brokerage reconciliation?
A. It must be processed once a year
B. Brokers' bills should be reconciled during the night when no other system is running
C. Brokers' bills must be reconciled promptly at month-end prior to payment
D. The existence of a single reference currency for all the brokers with whom your institution is dealing
 
Correct Answer: C 
QUESTION 33
What is the first task of the cash positions keeper every day?
A. Makes sure the opening position for the current day is the agreed and reconciled position from the
previous day
B. Makes sure the previous day1s pending position is the opening position for the current day
C. He/she checks to see which dealer is in charge of which currency for that day
D. He/she checks to see which countries have bank holidays that day
 
Correct Answer: A 
QUESTION 34 
When completing a nostro reconciliation, what does an unresolved ledger credit signify?
A. The duplicate receipt of funds from a counterparty
B. The non-payment of funds to a counterparty
C. The duplicate payment of funds to a counterparty
D. The non-receipt of funds from a counterparty
 
Correct Answer: B 
QUESTION 35
 What is a future nostro balances report?
A. A list of the final maturity of bonds per value date
B. An account of the possible fees to be paid
C. A comparison of the overdraft interest to be paid on different nostro accounts
D. A report produced to show the anticipated balance on the account as a result of running off existing
business
 
Correct Answer: D 
QUESTION 36
The use of standard settlement instructions (SSI's) is strongly encouraged because:
A. A dealer does not need to confirm payment details by phone
B. It splits differences arising from failed settlements between the two counterparties
C. It eliminates the need to send out SWIFT payment authorizations on a case-by-case basis
D. It avoids having to confirm each deal separately
Correct Answer: AQUESTION 37Which of the following is a fundamental element or module in the "securities dealing and processing" part
of a treasury system?
A. The financial reporting standard
B. Brokerage accounting
C. The custodian account reconciliation function
D. The country limit overview
 
Correct Answer: C 
QUESTION 38 
An input message for the SWIFT network is composed of up to which five parts?
A. 1. Basic header block, 2. Communication header block, 3. Currency block, 4. Text block, 5.
Trailers block
B. 1. Basic header block, 2. Application header block, 3. User header block (optional), 4. Text block, 5.
Trailers block

C. 1. Sending header block, 2. Application header block, 3. User header block, 4. Text block (optional), 5.
Transmission block
D. 1. Basic header block, 2. System header blocks (optional), 3. User header block, 4. Text block, 5.
Security block
Correct Answer: BQUESTION 39How many characters does a BIC have? (Under ISO standard 9362: 2009)
A. 6 or 9 characters
B. 9 or 12 characters
C. 7 or 10 characters
D. 8 or 11 characters

 Correct Answer: D 
QUESTION 40 
Which of the following BIC-addresses belongs to a bank based in Germany?
A. FRNYUS33
B. ECBFDEFF
C. BCLXLULL
D. SNBZCHZZ
 
Correct Answer: B 
QUESTION 41 
Which of the following statements best describes collateral?
A. Liquid assets pledged by one or both counterparties to the other to reduce credit risk
B. Deposits placed by a commercial bank with a central bank to fulfill reserve asset ratios
C. Any deposit placed by an institution with another institution of a lower credit rating
D. Any cross border payment of currency
 
Correct Answer: A


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