ACI ACI Certifications 3I0-010 Questions & Answers

• Question 211:

  What is the main difference between TARGET and TARGET2?

  A. Belgium does not participate in TARGET but it does participate in TARGET2

  B. The cut-off time for TARGET2 is 20:00 (8.00 p.m.) CET, whereas the cut-off time for TARGET is

  18:00 (6.00 p.m.) CET

  C. TARGET2 runs on a single shared platform whereas TARGET does not.

  D. TARGET2 processes payment orders denominated in EUR as well as USD

  Correct Answer: C

• Question 212:

  Why does The Model Code recommend the use of netting systems?

  A. to avoid too heavy a workload for operations staff

  B. to reduce settlement and credit risk

  C. to enhance the straight through processing

  D. to reduce the brokerage fees

  Correct Answer: B

• Question 213:

  Which of the following processes are offered by the CLS settlement system?

  A. the close-out process

  B. the customer matching process

  C. the settlement process

  D. the securities lending process

  Correct Answer: C

• Question 214:

  Which of the following characterize "delivery against payment" also known as "delivery versus payment"?

  A. securities are first delivered and then the payment is processed

  B. the payment order is first blocked and then the payout of securities is processed

  C. securities are exchanged into a defined currency

  D. delivery is insured if and only if payment occurs

  Correct Answer: D

• Question 215:

  What is a correspondent bank?

  A. a bank which processes payment orders on behalf of another bank

  B. a bank which processes payment orders on national level only

  C. a bank which has subsidiaries in CLS-countries

  D. a bank which has a minimum reserve account in more than one country

  Correct Answer: A

• Question 216:

  What is a loro or vostro bank account?

  A. an account that you hold with another bank

  B. an account that another bank holds with you

  C. an account that you hold with the Bank of England

  D. a suspense account

  Correct Answer: B

• Question 217:

  Which SWIFT message type is NOT accepted in TARGET2?

  A. SWIFT message type 103+

  B. SWIFT message type 202

  C. SWIFT message type 204

  D. SWIFT message type 210

  Correct Answer: D

• Question 218:

  Which of the following currencies is eligible for CLS settlement?

  A. ZAR

  B. TRY

  C. MYR

  D. CNY

  Correct Answer: A

• Question 219:

  If your trader has dealt a 6-month USD/JPY swap, selling and buying USD 10 million, will you:

  A. expect a credit statement on your JPY nostro account on the near date

  B. be required to obtain and execute the ICMA Master Agreement to document the transaction

  C. need to instruct your USD nostro bank to pay out USD on the far date

  D. anticipate no movement of principal, but a cash settlement on the far date

  Correct Answer: A

• Question 220:

  You have received the requisite notification from a non-swapping counterparty that their USD correspondent is to be changed from Bank A to Bank B taking effect from value date 15 June 2012. On 14 June 2012, you buy JPY 50 million from your counterparty against USD for value spot. Whom do you pay the USD?

  A. bank A

  B. bank B

  C. neither bank A nor bank B

  D. both bank A and bank B

  Correct Answer: B