Trade Life Cycle Quiz
1. What is the first step in the trade life cycle?
A. Trade confirmation
B. Trade execution
C. Trade settlement
D. Trade allocation
Answer: B. Trade execution
2. Which document confirms the details of a trade between two parties?
A. Trade blotter
B. Trade confirmation
C. Trade allocation
D. Trade report
Answer: B. Trade confirmation
3. What is the primary purpose of trade allocation?
A. To confirm the trade details
B. To assign trades to specific accounts
C. To report trades to the regulator
D. To settle the trade
Answer: B. To assign trades to specific accounts
4. Which phase involves the exchange of securities and cash between buyer and seller?
A. Trade execution
B. Trade confirmation
C. Trade settlement
D. Trade allocation
Answer: C. Trade settlement
5. What is the term for the process of ensuring that the details of a trade are accurate and agreed upon by both parties?
A. Trade confirmation
B. Trade reconciliation
C. Trade execution
D. Trade allocation
Answer: A. Trade confirmation
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6. In the context of the trade life cycle, what does the abbreviation 'STP' stand for?
A. Standard Trading Procedure
B. Straight-Through Processing
C. Securities Trading Platform
D. Settlement and Trade Processing
Answer: B. Straight-Through Processing
7. What is the main goal of trade reconciliation?
A. To execute the trade
B. To confirm the trade details
C. To ensure records match between trading parties
D. To allocate trades to specific accounts
Answer: C. To ensure records match between trading parties
8. Which system is commonly used for the electronic settlement of trades?
A. SWIFT
B. FIX Protocol
C. CLS Bank
D. Bloomberg Terminal
Answer: C. CLS Bank
9. What role does the middle office play in the trade life cycle?
A. Trade execution
B. Trade confirmation and risk management
C. Trade settlement
D. Trade allocation
Answer: B. Trade confirmation and risk management
10. What is the final step in the trade life cycle?
A. Trade allocation
B. Trade confirmation
C. Trade settlement
D. Trade reporting
Answer: D. Trade reporting
Senior Process Executive At Cognizant
3 个月Most Valuable Stuffs and really helpful Thanks For Sharing Saumya Saxena
IIBA - ECBA Certified Business Analyst || Product management || Product Strategy frame work || Certified PSM-1||Domain Experts in Investment Banking|| EX-TCS|| EX- SSHCL|| EX-Accenture|| EX- Eclerx|| Ex- PCR
3 个月Insightful information
Manager at TCS
3 个月Trade lifecycle starts from Order Initiation and then Order Placement and then order converts into a trade then once it is converted then we reach trade execution stage
CMA qualified having more than 9 years of experience in Fund Accounting,Corporate Actions,capital market, Mutual Fund, Swift payment,migration,UAT Testing,Team management.Actively looking
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