ACI ACI Certifications 3I0-010 Questions & Answers

• Question 301:

  Major amendments to a prospectus can be made:

  A. at the discretion of the issuer and after the launch

  B. only with the consent of the note holders

  C. always in the case of default payment

  D. only by the custodian with the consent of the issuer

  Correct Answer: B

• Question 302:

  A callable bond attributes a right to:

  A. the lead manager to acquire the entire issue

  B. the lead manager to acquire the entire issue and the issuer to redeem the note at specified dates

  C. the issuer to redeem agreed upon quantities of the note at specified dates

  D. the note holder to sell the notes at specified dates

  Correct Answer: C

• Question 303:

  What is a junk bond?

  A. an AAA-rated security in payment default

  B. a sub-investment grade instrument

  C. an OECD Government bond

  D. a bond typically paying lower yields than an investment grade instrument

  Correct Answer: B

• Question 304:

  A redemption premium for a bond is

  A. always paid in case of an early redemption

  B. paid, if stipulated in the prospectus, at an early redemption

  C. always paid at final maturity

  D. only paid if a bond is redeemed after its initially scheduled maturity

  Correct Answer: B

• Question 305:

  The yield of a 1 month FRN in EUR depends on

  A. the level of short-term EUR interest rates

  B. the level of medium-term EUR interest rates

  C. the slope of EUR yield curve

  D. the level of long-term EUR interest rates

  Correct Answer: A

• Question 306:

  Which action results in the highest STP-Rate?

  A. the daily reconciliation of nostro accounts

  B. the use of a Continuous Linked Settlement

  C. the use of internal limits regulations such as counterparty limits and country limits

  D. a trade confirmation check

  Correct Answer: B

• Question 307:

  What is the main role of back office staff?

  A. to confirm the accuracy of counterparties mailing addresses

  B. to inform the central bank when a country limit is higher than a fixed level

  C. to ensure that trades are confirmed and settled correctly in accord with best market practice recommendations

  D. to be in constant contact with the counterparties front office staff

  Correct Answer: C

• Question 308:

  A broker:

  A. is an agent who mediates between buyers and sellers, for their mutual financial interest

  B. controls country limits in cooperation with the compliance officer

  C. is responsible for reducing transaction fees

  D. acts as a correspondent bank

  Correct Answer: A

• Question 309:

  A dealer belongs to:

  A. the money laundering staff

  B. the middle office staff

  C. the front office staff

  D. the back office staff

  Correct Answer: C

• Question 310:

  If an overnight EUR/USD FX swap is traded on Tuesday, 19 June, and there are no currency holidays during the week of June 18 22, what would be the value dates of the two swap legs?

  A. 18 June against 19 June

  B. 19 June against 20 June

  C. 20 June against 21 June

  D. 21 June against 22 June

  Correct Answer: B