ACI ACI Certifications 3I0-010 Questions & Answers

• Question 271:

  What risks arise from not receiving the securities purchased or not receiving payment for securities sold?

  A. liquidity, market and counterparty risk

  B. only a funding risk

  C. only a liquidity and a funding risk

  D. settlement, funding and liquidity risk

  Correct Answer: D

• Question 272:

  Rising interest rates will cause:

  A. a higher volume on settlement

  B. government borrowing to fall

  C. bond prices to rise in response to higher interest rates

  D. bond prices to fall

  Correct Answer: D

• Question 273:

  The tenor of a bill of exchange describes:

  A. the original rate of the bill

  B. the rate at which the bill is bought

  C. the time to maturity of the bill

  D. the date on which the bill matures

  Correct Answer: C

• Question 274:

  The purchase price of a coupon bond

  A. is higher than its face value if, and only if, its coupon rate is higher than its yield to maturity on the coupon date

  B. is higher than its face value if, and only if, its coupon rate is lower than its yield to maturity on the coupon date

  C. is lower than its face value if, and only if, its coupon rate is higher than its yield to maturity on the coupon date

  D. is always higher than its face value

  Correct Answer: A

• Question 275:

  Which of the following are primary markets?

  A. auction markets conducted by the U.S. Treasury for U.S. Treasury bills

  B. the repo market

  C. the foreign exchange market

  D. the over-the-counter market for U.S. Government Bonds

  Correct Answer: A

• Question 276:

  The coupon of this type of bond can be based on a country`s CPI (Consumer Price Index):

  A. "step up" bonds

  B. index linked bonds

  C. premium bonds

  D. par bonds

  Correct Answer: B

• Question 277:

  The "centralized collateral management service" offers which of the following services for its clients?:

  A. the valuation and transfer of collateral in general collateral (GC) repos only

  B. the valuation and transfer of collateral in triparty repos only

  C. the valuation and transfer of collateral in special repos only

  D. the valuation and transfer of collateral in any type of repo

  Correct Answer: D

• Question 278:

  Which of the following institutions is not a cross-border clearing house?

  A. Monte Tittoli Milano

  B. Euro clear Brussels

  C. Clear stream Banking Luxembourg

  D. SWIFT

  Correct Answer: D

• Question 279:

  A Luxembourg based bank, which regularly buys American securities for its customers, will preferably:

  A. buy the American securities directly on the NYSE

  B. open a bank account in the United States

  C. open an account in a bank in the U.S. that has an account at the NYSE

  D. buy the securities directly in Luxembourg

  Correct Answer: C

• Question 280:

  The depositary of your securities:

  A. is responsible only for the settlement of those securities

  B. is responsible only for safeguarding the securities that you have on your account

  C. is responsible for safeguarding both the securities that you have on your account and their settlement

  D. is never responsible for safeguarding securities

  Correct Answer: C