ACI ACI Certifications 3I0-010 Questions & Answers

• Question 141:

  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

• Question 142:

  Which of the following are considered best practices?

  A. front office and back office should have different management reporting lines

  B. confirmation discrepancies should be investigated within 48 hours

  C. confirmations need only be exchanged via SWIFT if the amount involved is higher than USD 1,000,000.00 or equivalent

  D. money market and FX dealers should have different management reporting lines

  Correct Answer: A

• Question 143:

  Which of the following statements would be regarded as describing best practice?

  A. internal transactions should not be confirmed as there is no credit risk involved

  B. chasers on internal confirmations should be sent less frequently than those for external confirmations

  C. internal confirmations should be subject to the same procedures as those in place for external clients

  D. control procedures should be relaxed generally for internal confirmations

  Correct Answer: C

• Question 144:

  You have been given collateral. In which case would you be least concerned about insisting on a "haircut"?

  A. non-cash emerging markets collateral

  B. cash collateral in JPY, your base currency is GBP

  C. cash collateral in USD, your base currency is USD

  D. non-cash high yield collateral

  Correct Answer: C

• Question 145:

  Which settlement system offers the lowest risks?

  A. EBA

  B. CLS

  C. TARGET

  D. EAF

  Correct Answer: B

• Question 146:

  A EUR based bank has a USD-convertible bond. What market risks are present?

  A. interest rate and currency risks

  B. interest rate, stock price and currency risks

  C. stock price and currency risks

  D. stock price risk

  Correct Answer: B

• Question 147:

  What is a bank required to do when entering into a new business relationship with a natural person?

  A. inform the central bank of their country

  B. no action is required

  C. verify the identity of the person

  D. inform the compliance department

  Correct Answer: C

• Question 148:

  You receive a trade to process with counterparty settlement instructions that differ from those you hold on your standard settlement instruction file (SSI).

  A. You should make the payment in accordance with the SSI you are holding without referring to your dealer or contacting the counterparty

  B. You should make the payment in accordance with the trade instructions

  C. You should check the SSI with your dealer and contact the counterparty to seek his specific instructions

  D. You should not make the payment

  Correct Answer: C

• Question 149:

  Which 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 150:

  What does a holiday file contain?

  A. It contains all weekends and bank holidays for all currencies held in the currency file

  B. It contains all holidays requests of the front-, middle- and back office staff

  C. It contains dates of school holidays

  D. It contains a list of deals where the maturity date is a weekend

  Correct Answer: A