ACI ACI Certifications 3I0-010 Questions & Answers

• Question 181:

  Why is securities reconciliation necessary?

  A. to prevent that a failed order results in a failure to settle that day, which in turn would lead to an incompletely-reconciled account

  B. to facilitate the handling of complex security transactions

  C. in order to save data capacity in electronic archiving systems

  D. to anticipate the fact that clearing houses stop processing in the afternoon, whereas payment orders may still be processed until 6 PM

  Correct Answer: A

• Question 182:

  Under what circumstances should you ask for "use of funds"?

  A. if you have credit balances on several nostro accounts and have to use these balances to cover your outstanding payment orders

  B. if your nostro A shows a debit whereas your nostro B shows a credit balance, you allow correspondent B to use your credit balance to work with, in order to receive credit interests to partially or totally cover the overdraft interests on nostro A.

  C. if at the end of a month, you want to collect the credit balances and to ask for credit interest

  D. if the net balance on a nostro account is higher than the amount agreed upon with your counterparty

  Correct Answer: B

• Question 183:

  Which SWIFT message type is a nostro cash reconciliation software package based on?

  A. SWIFT message type 300

  B. SWIFT message type 292

  C. SWIFT message type 571 (i.e. a statement of holdings)

  D. SWIFT message types 940 and 950 (i.e. a statement of account)

  Correct Answer: D

• Question 184:

  Which of the following is an example of a foreign currency nostro account from the perspective of a bank in London?

  A. a GBP account with another UK bank

  B. a CHF account with a bank in Zurich

  C. a CHF account that it holds for a customer in London

  D. a GBP account that it holds for a bank in New York

  Correct Answer: B

• Question 185:

  In settling a money market placing between your dealer and a counterparty, what would be the financial consequences of a payment made one day late?

  A. the counterparty would cancel the deal

  B. the bilateral limit with the counterparty would have to be adjusted

  C. the counterparty would demand interest on the late payment

  D. there are no adverse financial consequences

  Correct Answer: C

• Question 186:

  You have 10 credited amounts of 1 million each with same value date and same currency. Which of the following items is most helpful in reconciling these amounts?

  A. When the deal was processed is a good indication of the amounts to be reconciled

  B. Each deal is registered according to a unique reference which helps in reconciling the items

  C. The BIC-address helps you to reconcile the open items

  D. None of the above. You should telephone your counterparties to request more information

  Correct Answer: B

• Question 187:

  What is a future nostro balances report?

  A. a list of the final maturity of bonds per value date

  B. an account of the possible fees to be paid

  C. a comparison of the overdraft interest to be paid on different nostro accounts

  D. a report produced to show the anticipated balance on the account as a result of running off existing business

  Correct Answer: D

• Question 188:

  You have five outstanding amounts with five different values. Which of the following should be investigated first?

  A. The most recently processed deal

  B. The counterparties in your own country

  C. The counterparty which claims first

  D. Those positions with the highest loss potential

  Correct Answer: D

• Question 189:

  Why should the maturity profile of unreconciled items be frequently reviewed?

  A. It allows the compliance officer to see how often the reconciliation staff has claimed for an outstanding item

  B. It allows management to see what items are pending by value and counterparty, but also how long items have been outstanding and whether there is an improvement in the pace of reconciliations.

  C. It allows reconciliation staff to check the bilateral limits with counterparties and to adjust these limits as necessary

  D. because the most recent figures have to be published in the balance report

  Correct Answer: B

• Question 190:

  What is the most important feature of a brokerage reconciliation?

  A. It must be processed once a year

  B. brokers' bills should be reconciled during the night when no other system is running

  C. brokers bills must be reconciled promptly at month-end prior to payment

  D. the existence of a single reference currency for all the brokers with whom your institution is dealing

  Correct Answer: C