ACI ACI Certifications 3I0-012 Questions & Answers

• Question 241:

  With regard to operational risk awareness, which of the following best practices is incorrect?

  A. A report describing operational risks, the most significant incidents and corrective plans of action should be established on a quarterly basis.

  B. It is good practice to collect and analyze incidents and near-misses so as to set up preventive action plans for the future.

  C. Every time a report describing operational risks is produced, it should be provided to senior management.

  D. Whenever possible action plans should be put in place that mitigate operational risks that have been identified.

  Correct Answer: A

• Question 242:

  In the deposit broker market, which one of the following is not a valid reason for the proposed borrower to decline the lenders name?

  A. In the case of short date deposits, if the borrower is not prepared to repay the deposit prior to notice of receipt of the funds from the correspondent bank.

  B. The borrower has no lending line for the placer of the funds and does not wish to be embarrassed by being unable to reciprocate.

  C. If he secures a better rate elsewhere.

  D. The borrower would be in breach of internal or regulatory depositor concentration limitations.

  Correct Answer: C

• Question 243:

  ACI's Committee for Professionalism will offer expert opinion in disputes between firms if: A. both parties to the dispute are members of the ACI and agree to submit the dispute to the ACI

  B. one of the counterparties requests the assistance of ACI's Committee for Professionalism

  C. the two counterparties are located in different financial centers

  D. the amount in dispute is more than USD 100,000.00 or equivalent

  Correct Answer: B

• Question 244:

  The term "under reference" refers to:

  A. an unavailability of a credit limit for the counterparty

  B. a qualification stating that a transaction needs to be reconfirmed

  C. the unacceptability of the counterparty's name

  D. a qualification stating that the rate quoted may no longer be valid and requires confirmation before any trades can be agreed

  Correct Answer: D

• Question 245:

  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 specified rate was reached

  C. cannot be taken as a fixed-price guarantee unless agreed in writing

  D. will always be the stop loss rate, if the order is executed

  Correct Answer: C

• Question 246:

  What is the ISO code for platinum?

  A. XAU

  B. XAG

  C. XPT

  D. XPD

  Correct Answer: C

• Question 247:

  If 6-month EUR/AUD is quoted at 129/132, which of the following statements is correct?

  A. EUR rates are higher than AUD rates in the 6-month

  B. AUD rates are higher than EUR rates in the 6-month

  C. There is a positive EUR yield curve

  D. There is not enough information to decide

  Correct Answer: B

• Question 248:

  What criteria define a market-maker?

  A. He will only quote to brokers

  B. He will quote choice prices on request

  C. He will only quote two-way prices to brokers

  D. He will quote two-way prices for marketable amounts on request

  Correct Answer: D

• Question 249:

  You are quoted the following market rates:

  Spot EUR/USD 1.3010 6M (181-day) EUR 0.30% 6M (181-day) USD 0.50%

  What is 6-month EUR/USD?

  A. 1.2993

  B. 1.3023

  C. 1.3141

  D. 1.4323

  Correct Answer: B

• Question 250:

  You quote your customer EUR/USD 1.3070-73, However they need the rate quoted in EUR per USD. What do you quote?

  A. 1.3073-70

  B. 0.7651-49

  C. 0.7646-49

  D. 0.7649-51

  Correct Answer: D