ACI ACI Certifications 3I0-010 Questions & Answers

• Question 171:

  What does "arrange good value payment" mean?

  A. to cancel an initial payment order and to process a new one with a higher amount

  B. to suspend a payment order until the balance becomes positive again

  C. to adjust the amount of fees to be paid

  D. to change the value date of a payment order

  Correct Answer: D

• Question 172:

  What is the disadvantage having separate cash accounts?

  A. You need more back office staff to book the fees

  B. One account could be overdrawn while the other has excess funds. The surplus balance would earn less interest than the amount being charged on the corresponding overdraft if an error occurs in settlement. Thus there is a risk of overdraft interest versus idle balances

  C. One securities account could be overdrawn while the other has excess securities. The surplus balance would earn less interest, if any, than that being charged on the corresponding overdraft if an error occurs in settlement

  D. The workload of the auditors, compliance officers, risk managers and dealers will be higher

  Correct Answer: B

• Question 173:

  What documents and/or information should you hold in order to start an investigation?

  A. From the counterparty: the trade confirmation. In-house: the trade confirmation, nostro reconciliation details, the dealing ticket and eventually dealing-system conversation printout

  B. From the counterparty: the dealers name and phone number. In-house: dealers name as well as the exact time the deal was processed

  C. From the counterparty: the trade confirmation. In-house: the open item list, nostro reconciliation details and the dealing ticket

  D. From counterparty: the balance report and the trade confirmation; In-house: the dealing-system conversation printout

  Correct Answer: A

• Question 174:

  Due to an error by your dealers, your bank is 5 days late in paying EUR 10,000,000.00. Your correspondent bank says it will charge you 12% p. a. plus reserve costs of Euro 1.00 per thousand. How much will your account be charged for this overdraft?

  A. EUR 16,666.67

  B. EUR 16,438.36

  C. EUR 1,200,000.00

  D. EUR 26,666.67

  Correct Answer: D

• Question 175:

  Which of the following steps describes the correct sequence for running an investigation?

  A. 1. gather all the required documentation; 2. reach an agreement with your dealer; 3. send a claim to the counterparty

  B. 1. inform the compliance officer; 2. gather all required documentation; 3. contact the counterpartys dealer; 4. reach an agreement with the counterpartys dealer

  C. 1. contact the banks' attorney; 2. ask your dealer to amend or to cancel the deal; 3. ask the accounting department to the adjust value date

  D. 1. gather all required documentation; 2. determine the origin of any discrepancy 3. get in contact with the counterparty and submit the facts 4. reach an agreement with the counterparty

  Correct Answer: D

• Question 176:

  Under what circumstances would you have to pay overdraft interest?

  A. if the counterparty's fees are higher than yours

  B. if your nostro account balance at the end of the month is less than the amount of fees paid

  C. If your nostro account shows a debit balance you will be charged overdraft interest on the remaining debit amount.

  D. Overdraft interest is charged if your collateral at the central bank is lower than your cash balance

  Correct Answer: C

• Question 177:

  You find that you have paid an amount to the wrong counterparty. What action should you take?

  A. wait until the counterparty contacts you to before deciding what to do

  B. immediately contact the counterparty to find the most appropriate way to have the funds returned as quickly as possible to minimize the loss of value days

  C. ask the counterparty to keep the money and to place (invest) it at a special rate

  D. ask your accounting department to book the amount as a loss

  Correct Answer: B

• Question 178:

  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 days 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 179:

  Internal nostro ledger accounts

  A. are commonly used to register off-balance sheet movements

  B. are used to book internal tax related items

  C. generally mirror the nostro statements

  D. are reserved for audit purposes only

  Correct Answer: C

• Question 180:

  What criteria should reconciliation escalation be based on?

  A. it should be based on the days past settlement date, value and/or likely compensation

  B. it should be based on the BIC-address and country

  C. it should be based on bilateral limits

  D. it should be based on the relationships of the institutions involved

  Correct Answer: A