ACI ACI Certifications 3I0-012 Questions & Answers

• Question 261:

  Which of following terms is not used as an expression for dates other than regular dates/periods?

  A. cock dates

  B. broken dates

  C. odd dates

  D. weird dates

  Correct Answer: D

• Question 262:

  Which of the following statements with respect to trading and broking ethics through the use of technology is the correct quote from the Model Code?

  A. Deliberate attempts at gaming and abuse using the flashing of orders without the intent to deal should be classified as proprietary trades.

  B. Management should ensure that the complete e-trading process, from pricing to risk impact through to settlement, conforms to recognized standards and market conventions.

  C. All bid-offers presented to electronic platforms should remain in the Matching System for no more than the minimum period of time defined within their respective Minimum Quote Life (MQL) rules.

  D. Trades which occur at off-market rates, by agreement between the two counterparts and as soon as practically possible, should stand and any profit be equitably divided between them.

  Correct Answer: B

• Question 263:

  The Model Code is clear on "position parking". What does it say?

  A. The parking of deals or positions with any counterparty is discouraged B. The parking of deals or positions with any counterparty should be forbidden

  B. The parking of deals or positions should be subject to a clear policy laid down in writing by senior management

  C. In jurisdictions where position parking is allowed, prior approval should be sought from the regulator

  Correct Answer: B

• Question 264:

  Which of the following statements about Eurodollar deposits is correct?

  A. Eurodollar deposits can only be dealt by banks in the USA

  B. US withholding tax applies to Eurodollar deposits

  C. Eurodollar deposits are free of US reserve requirements

  D. Eurodollar deposits are subject to US exchange controls

  Correct Answer: C

• Question 265:

  A CD can usually only be issued by what type of institution?

  A. Credit institution

  B. Investment bank

  C. Discount house

  D. Corporate

  Correct Answer: A

• Question 266:

  If the value of the collateral in a repo has fallen during the term of the transaction, who suffers the loss?

  A. Seller

  B. Buyer

  C. Issuer

  D. It depends on the agreement between the buyer and seller

  Correct Answer: A

• Question 267:

  Which of the following functions does a to-party repo agent not perform?

  A. It checks the eligibility and sufficiency of collateral

  B. It can impose an initial margin on behalf of the buyer and manages margin calls

  C. It manages substitution of collateral on behalf of the seller

  D. It participates in the risk of transactions if one of the parties defaults

  Correct Answer: D

• Question 268:

  Today, you sell GBP 5,000,000.00 to a customer against JPY for spot value. Tomorrow, the customer defaults. What is your exposure called?

  A. Replacement risk

  B. Settlement risk

  C. Legal risk

  D. Basis risk

  Correct Answer: A

• Question 269:

  Which one of the following best describes expected shortfall/conditional value-at-risk at the 95% level?

  A. the expected loss on the portfolio in the worst 95% of cases

  B. the expected loss in those cases where the loss exceeds the VaR at the 95% level

  C. the maximum loss in those cases where the loss exceeds the VaR at the 95% level

  D. the expected loss in those cases where the loss exceeds the VaR at the 5% level

  Correct Answer: B

• Question 270:

  For a bank to count funds as regulatory capital:

  A. There has to be an ultra long term maturity date

  B. The risk taken by the bank must be taken or shared by provider of the capital

  C. The funds must be in the form of pure equity

  D. The funds must be re-invested only in cash

  Correct Answer: B