Click on the Detail Button to view the Formula Sheet. When you are accepting a stop loss order, you must:
A. Ensure that your counterparty understands the terms under which your bank accepts the order.
B. Ensure that your counterparty can be contacted in the event of unusual situations or events or extremely volatile market conditions.
C. Ensure that your counterparty understands that any guarantee of fixed price execution requires agreement in writing.
D. All of the above.
Click on the Detail Button to view the Formula Sheet. Brokers shall not reveal the identity of a counterparty
unless:
A. They are forced to do so.
B. Explicitly authorised to do so by the counterparty.
C. They know the counterparty very well.
D. They are asked by their senior management to do so.
Click on the Detail Button to view the Formula Sheet. Written confirmation is a function that can be done by:
A. Any dealer as long as he/she is not a party to the trade.
B. Staff in the back-office.
C. Staff in the dealing room who are not dealing.
D. Any staff outside the dealing room.
Click on the Detail Button to view the Formula Sheet. Which of following is not true?
A. Inter-bank market participants have a duty to make absolutely clear whether the prices they are quoting are firm or merely indicative.
B. It is the duty of the dealer to periodically confirm with the broker the validity of his price.
C. It is the responsibility of the dealer to ensure that prices given to a broker are taken off if they have not been hit or were subject to a time limit.
D. No deal is done if one counterparty is unable to conclude a deal due to credit line problems and a name switch is not found within a reasonable period of time.
Click on the Detail Button to view the Formula Sheet. Which of the following statements is true?
A. Banks should not ask brokers to disclose details of third party transactions unless they are between overseas principals.
B. Banks should not ask brokers to disclose details of third party transactions unless these transactions are already settled.
C. Banks should not ask brokers to disclose transactions between third parties in any circumstances.
D. Banks should not ask brokers for details of third party transactions unless senior management has approved.
Click on the Detail Button to view the Formula Sheet. Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO / USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:
A. The name of Banks A and B
B. The name of Bank B only.
C. The amount that was bid but not the name of Bank A
D. None of the above
Click on the Detail Button to view the Formula Sheet. Confirmations must be sent out:
A. Immediately after the deal is done.
B. As quickly as possible after the deal is done.
C. By electronic media only, e.g. fax, telex.
D. Not later than the value date of the first leg of the transaction.
Click on the Detail Button to view the Formula Sheet. Where the matter of dealing for personal account is concerned, the Model Code recommends that:
A. Subject to local legal requirements, this matter is one for bank management to decide.
B. Bank management should encourage such activities because it allows banks to monitor the gambling habits of their staff.
C. Where this is allowed, bank management should have a clearly defined policy and written procedures.
D. Bank management should allow staff to deal for their personal account on a case to case basis.
Click on the Detail Button to view the Formula Sheet. To curb attempted fraud, banks should:
A. Require greater vigilance by the management and staff.
B. Take particular care when the beneficiary is a third party to the deal.
C. Ensure that details of all telephone deals which do not include pre-agreed standard settlement instructions are confirmed by telex or similar means without delay.
D. All of the above.
Click on the Detail Button to view the Formula Sheet. Fraud is typically classified as:
A. Credit risk
B. Market risk
C. Legal risk
D. Operational risk
Nowadays, the certification exams become more and more important and required by more and more enterprises when applying for a job. But how to prepare for the exam effectively? How to prepare for the exam in a short time with less efforts? How to get a ideal result and how to find the most reliable resources? Here on Vcedump.com, you will find all the answers. Vcedump.com provide not only ACI exam questions, answers and explanations but also complete assistance on your exam preparation and certification application. If you are confused on your 3I0-008 exam preparations and ACI certification application, do not hesitate to visit our Vcedump.com to find your solutions here.