ACI ACI-Financial Markets Association 3I0-012 Questions & Answers

• Question 1:

  What are IMM dates?

  A. The 10th of March, June, September and December.

  B. The third Wednesdays of January, April, July and October.

  C. The Mondays before the third Wednesdays of March, June, September and December.

  D. The third Wednesdays of March, June, September and December.

  Correct Answer: D

• Question 2:

  When using legal documentation proposed modifications:

  A. Should be documented as soon as possible after a deal is done.

  B. Should be clearly stated before a deal.

  C. Can be agreed verbally.

  D. Are not permissible.

  Correct Answer: B

• Question 3:

  It is up to the vendors of electronic dealing platforms to ensure that dealers are trained to use their systems.

  A. Management should ensure dealers fully understand the systems they use and dealers should read the manuals.

  B. Management, dealers and vendors share responsibility.

  C. Dealers are required to pass the ACI Dealing Certificate before being allowed to access electronic dealing platforms.

  D. Given the wide range of electronic dealing platforms used by banks, it is the responsibility of the vendors to ensure individual users are adequately trained.

  Correct Answer: A

• Question 4:

  One or your brokers asks you to buy and sell EUP/USD at the same price net of brokerage in order to allow him to clear a transaction.

  A. You must have prior senior management approval.

  B. You must have the authority to switch names.

  C. You must execute such transactions as promptly as possible within policy guidelines

  D. All of the above.

  Correct Answer: D

• Question 5:

  A person who appears to be a technician asks for your help in accessing treasury systems as he has forgotten his list of access codes. The Model Code recommends:

  A. You should provide all reasonable assistance.

  B. You should report the request immediately to senior management.

  C. Do not get involved; you may be at risk.

  D. There is no recommendation in the Model Code.

  Correct Answer: B

• Question 6:

  What does the Model Code say about the responsibility of a broker in handling suspicious transactions?

  A. Suspicious transactions should be reported by the principals.

  B. Brokers need to make staff aware of the problem and exercise vigilance.

  C. A broker should report any suspicions about a transaction to the other counterparty.

  D. Brokers should advise clients to reject the name.

  Correct Answer: B

• Question 7:

  Under the Model Code, it a broker shouts "done" or "mine" at the very moment a dealer shouts "off":

  A. No deal is done.

  B. The deal is done.

  C. It should be resolved in consultation with senior management.

  D. The central bank should be consulted.

  Correct Answer: B

• Question 8:

  Market participants should, where activity justifies it, aim to reduce settlement and related credit risk on currency transactions by:

  A. Establishing realistic daylight limits for counterparties.

  B. Monitoring all payments to counterparties who are known to be experiencing difficulties.

  C. Establishing legally binding bilateral netting agreements with counterparties or participating in a multilateral netting system.

  D. Seeking pre-payment.

  Correct Answer: C

• Question 9:

  Dealers are allowed to trade for their own account if:

  A. The dealers have good track records in their dealing both for the institution and for themselves.

  B. There has been no previous conflicts of interest in the dealing room.

  C. There is a clearly laFd down policy.

  D. The dealers see no conflict of Interest in such dealing.

  Correct Answer: C

• Question 10:

  When a stop-loss/profit order is taken, the rate specified in the order:

  A. Must be transacted regardless of where the market moved.

  B. Must be transacted if a broker confirms that the rate specified was reached.

  C. Cannot be taken as a fixed-price guarantee.

  D. None of the above.

  Correct Answer: C