Aptitude testEnglish,French,German,Finance,VBA,C++,Matlab

WAVE 1

1.What is Fed?What are its roles?

2.What do you understand by a monetary policy?

3.What are borrowed and non-borrowed reserves?What is their purpose?Federal funds.

1.Fed is the Central Bank of USA that has multiple roles: to stabilize long-term interest rates,banking-
panic problems, to manage nations money supply through monetary policies,to strike the balance
between private interests of a bank and centralized responsibility of the government.

The latter means:--protect credit rights of consumers

--to supervise and regulate banking institutions.

2.Monetary policies are directed towards two main objectives:

---a low inflation rate

---stable prices.

3.Federal funds:excess reserves that commercial banks and other financial institutions deposit at
regional Federal Reserves banks.These funds can be lent,then, to other market participants with
insufficient cash on hand to meet their lending and reserve needs.

The loans are unsecured and are made a relatively low interest rate,called the federal funds rate or O/N
rate,because that is the period for which most such loans are made.

From a FED perspective:

O/N rate commercial bank deposit rate.

Borrowed reserves:bank reserves that were obtained by borrowing from the central bank.

Non-borrowed. : the opposite.

Used to meet requirements of the Basel Committee,or other supervising regulators.

The following map of definitions must be solved:

Bank run->bank panic->capital flight,fractional reserve banking,spillover effect(in banking),silent run,

bridge bank,bad bank

4.a)

In a company,reserves are considered part of the equity and therefore are considered.

On the other hand bank reserves are considered..

(liabilities,assets).

b)Define the following: bank run and bank panic,capital flight,fractional reserve banking,bridge
bank,bad bank.

c)How can individual banks protect agains bank runs?

Answers:

b)Bank run=sudden withdrawal OR deposits of just one bank.A banking panic is a financial crisis that
occurs when many banks suffer runs at the same time, as a domino pocket.

Capital flight Occurs when assets or money rapidly flow out of a country,due to an event of economic
consequences.

Example:increases in taxes on capital,or increases in taxes on capital holders.

Fractional Reserve Banking:is a practice whereby a bank accepts deposits,and holds reserves that are a
fraction of the amount of its deposit liabilities.

Bridge bank:institution created by a central bank/national regulator in order to operate a failed bank
until a buyer can be found for its operations.Used to overcome systemic risk.

Bad bank:is a corporate structure to isolate illiquid and high risk assets held by a bank or financial
organization.

Definition2:new government-run asset management corporation that buys individual non-performing

assets from one or more private banks,reducing the proportion of junk bonds in their asset pools,and
then acts as a creditor in the insolvency cases that follow.

c)1)Banks can encourage customers to make term deposits that cannot be withdrawn on demand.

2)Get a large number of friends and family of bank employees to stand in line and make a large number
of small,slow transactions.

3)Large lobby and fast service a couple of days before deposit insurance.(??)
MATLAB Questions and exercises

1)Given a vector v=[1,2,3,4] create a function that returns the square of the elements of v and also the
sum of the elments of v.

2)Given a matrix M, display the squares of the elements of M

3)Given a matrix M and a vector mu of returns display 1 , and also 1 , 1 where =

(1,1, ,1) , = (1 , , ) .

1)function [v2,s]=squares(v)

v2=v.^2;

s=sum(v);

end

2)function M2=squares2(M)

M2=M.^2;

end

3) function [a,b,c]=fct(mu,omega)
a=ones(1,size(omega,1))*pinv(omega)*ones(1,size(omega,1))';3rd request
b=ones(1,size(omega,1))*pinv(omega)*mu';2nd request
c=mu*pinv(omega)*mu';1st request
end

Exercises(continuation)
4)In a Markowitz framework with two fundamental portfolios V and W(minimum variance ) and
maximum return respectively, find the coordinates of the return,variance and position of each
portfolio.

function [position,ret,variance]=portfolios(mu,omega)
%We will display the 2 fundamental portfolios V,and W , of minimum variance
%and maximum return.
[a,b,c]=fct(mu,omega);
pos_v=1/a*inv(omega)*ones(1,size(omega,1))';
var_v=1/sqrt(a);
ret_v=b/a;
pos_w=1/b*pinv(omega)*mu';
ret_w=c/b;
var_w=sqrt(c)/b;
position=[pos_v,pos_w];
ret=[ret_v,ret_w];
variance=[var_v,var_w];
end

function [a,b,c]=fct(mu,omega)
a=ones(1,size(omega,1))*pinv(omega)*ones(1,size(omega,1))';
b=ones(1,size(omega,1))*pinv(omega)*mu';
c=mu*pinv(omega)*mu';
end
5. Plot the following functions:() = 3 3 + 2 2 1, () = 2 + 3 3, 1 () = 2 +
2, 2 () = 2 + 5 on the interval [-10,10].
Solution:
x1=[-10:0.01:10];y1=3*x1.^3+2*x1.^2-1;
y2=x1.^2+3*x1-3;
plot(x1,y1,'r',x1,y2,'g');
y3=x1*2+2;y4=-x1*2+5;
plot(x1,y3,'r',x1,y4,'g',x1,y4+2,'b');

First plot displays in red and green y1,y2(respectively).

6.Improve the exercise 4 by adding to the code provided,a Markowitz frontier.
function [position,ret,variance]=portfolios(mu,omega)
%We will display the 2 fundamental portfolios V,and W , of minimum variance
%and maximum return.
[a,b,c]=fct(mu,omega);
pos_v=1/a*inv(omega)*ones(1,size(omega,1))';
var_v=1/sqrt(a);
ret_v=b/a;
pos_w=1/b*pinv(omega)*mu';
ret_w=c/b;
var_w=sqrt(c)/b;
position=[pos_v,pos_w];
ret=[ret_v,ret_w]
variance=[var_v,var_w]
d=a*c-b^2;
ro=[-0.4:0.05:0.4];
sigma=sqrt(1/d*(a*ro.^2-2*b*ro+c));
plot(ro,sigma,'g');
end

French test
Translate the following sentences in French: (100 sentences and structures).
1.He doesnt stand a chance.
2.He is out of luck. 3.At this moment hes not in the national assembly.
4.You dont have to do this anymore.
Solutions:
1. Il na aucune chance.
2. Il na pas de chance.
3. Il nest pas lAssemble actuellement.
4. Tu nas plus faire a desormais.
5.As of this moment. 6.From now on,Ill drink water.
7.Unemployment in some areas now stands at 38%. 8.From here on(informal).
5. As of this moment:dornavant,ds cet instant;dsormais
6. Dsormais je boirai de leau.
7. Le chmage dans certains rgions atteint dsormais les 38%.
8. partir dici, partir de maintenant,dsormais.
Solutions:
9. I dont know who you are anymore.
10. You dont give commands anymore.
Solutions:
9.Je ne sais pas qui tu es desormais.
10.Vous ne me donnerez plus dordres desormais.
11.Everytime,Every night,The whole book,First of all,its quite the opposite.
Solutions:
11.Everytime=toutes les fois,every night=toutes les nuits,First of all=tout dabord;
Its quite the opposite=cest tout le contraire.

12.His only food was bread.His only food was milk.Every two weeks, I go to the forest.
13.Everybody thinks the same.
Solutions:
12.Pour toute nourriture,il avait de pain. Pour toute nourriture, il avait de lait.
Toutes les deux semaines, je vais dans la fort.

13.Tout le monde pense la mme.

14.You first;Ill go home first;and anyway.

15.Firstly,there is the reference to the financial perspective after 2006.
16.Gregory teaches us first and foremost the importance of a healthy food.
17.First of all, I would like to thank Mrs Jean for the work she has done.
18.Not to be easy to approach. Easy to approach
19.There is a serious argument about whether one should go further.
20.You just need to think twice about where you must place the verb.
Solutions:
14.You first=toi dabord;Je vais rentrer dabord chez mois.
And anyway=et puis dabord.
15. Il y a tout dabord la rfrence la perspective financire aprs 2006.
16.Grgoire nous enseigne tout dabord limportance des aliments sains.
17.Tout dabord, je remercie Mme Jean pour le travail quelle a accompli.
18.tre dun abord difficile.tre dun abord facile.
19. Il y a un srieux dbat quant savoir sil faut aller plus loin.
20.Il faut juste un petit peu plus rflchir quant la place du verbe.

21.As a parent, choosing healthy food for my family is important.

22.As a father I try to make healthy food choices for my family.
Solution:
21.En tant que parent,choisir des aliments sains pour ma famille est important.
22. ce titre, jessaie de faire des choix alimentaires sains pour ma famille.

23.So Im not too worried about Einstein going off and starting a hedge fund.
24.We will,therefore,be more precise as regards the definition of this equipment.
Solution:
23. Donc je ne suis pas trop inquiet quant Einstein lanant un fond spculatif.
24. Nous serons par consquent plus prcis quant la dfinition de ces quipements.

25.And the burning question about refugees:How many they are?

26.My skin was.hot and cool at the same time
Solution:
25. Et la question brlante au sujet de refugis:Combien ils sont?
26. Ma peau tait... la fois brlante et frache.

Translate in English the following passage:

Comme cela arrive dsormais tous les cinq ans, le Festival de Cannes dbutera en 2017, alors
que llection prsidentielle franaise viendra tout juste de connatre son pilogue. Clbration
du cinma mondial, la grand-messe verra trs certainement la politique simmiscer dans les
conversations des festivaliers dordinaire trs accapars par le septime art (et les soires).

Alors quils levaient le voile sur la slection officielle de cette 70e dition, le prsident Pierre
Lescure et son dlgu gnral Thierry Frmaux lont eux-mmes indiqu jeudi 13 avril : si
Cannes se veut une parenthse enchante dans le fracas de lactualit, le Festival ne peut
occulter les ralits du monde daujourdhui, quil sagisse des mouvements dhumeur de
Donald Trump, des atrocits de la guerre en Syrie ou des annonces bellicistes du rgime nord-
coren. Au-del du glamour et du tapis rouge, la Quinzaine, dailleurs, a lambition dtre le
"reflet du monde".

Solution:
Before translating the text we will pick every expression and explain it:
Tout juste=just;avoir tout juste=be totally right;
parenthse enchante=enchanted episode,enchanted break ;Now we proceed to the translation :

Because this happens every 5 years, the Cannes Festival will start in 2017
immediately after the presidential elections will arrive their end. The celebration of
the world cinema, the grand tables will see most certainly the politics interference in
the conversations of the festival people,which will behave as people very sensitive to
the 7th art(not to mention the soirees).
While the veil on the official selection on the 70th edition was lift up, the president
Pierre Lescure and his official deputy general Thierry Fremaux have indicated
themselves on April the 13th: Cannes wants to be a nice break in the clash of the
actuality,but the Festival cannot step down from the realities of the world nowadays,
which are containing the humour Trump movements,the atrocities of the war in
Syria,and the warmongering announces of the North Korean Regime.
Beyond the glamour and the red carpet, the Quinzaine, moreover,has the ambition of
being the reflection of the world.