ACI ACI Certifications 3I0-012 Questions & Answers

• Question 271:

  In FX trading a "third party beneficiary" is best described as:

  A. the issuer of a payment for the relevant trade distinct from the counterparty

  B. the issuer of a payment for the relevant trade identical to the counterparty

  C. the recipient of a payment for the relevant trade distinct from the counterparty

  D. the recipient of a payment for the relevant trade identical to the counterparty

  Correct Answer: C

• Question 272:

  If manual trade capture methods are used, when should deals be recorded in systems used for this purpose?

  A. The same day they are dealt

  B. Promptly

  C. Within 24 hours of execution

  D. Within an hour of execution

  Correct Answer: B

• Question 273:

  Between which departments are clear and structured escalation procedures required for the management of incorrect funding balances?

  A. Nostro reconciliations, the Cash Management Department and Operations

  B. Front Office, the Cash Management Department and Operations

  C. Front Office, Nostro reconciliations and Operations

  D. Front Office, Nostro reconciliations and the Cash Management Department

  Correct Answer: B

• Question 274:

  A bank quotes a spot rate that is verifiably incorrect and deviates substantially from the prevailing market rate.

  A. you should hit the price and hold the bank to the quoted incorrect rate, as the quoted party is entitled to hold the quoting party to an erroneous rate

  B. you should ask the dealer to check his price, as it is highly unethical for one party to hold another to an erroneously agreed rate

  C. you should point out the mistake and split the difference

  D. you should keep on dealing with this bank until the mistake is rectified

  Correct Answer: B

• Question 275:

  In foreign exchange markets, the first currency in a currency pair is:

  A. The quoted currency

  B. The base currency

  C. The counter currency

  D. The terms currency

  Correct Answer: B

• Question 276:

  Which of the following statements is an incorrect statement in respect of Model Code recommendations concerning electronic trading?

  A. It is recommended that ECNs have mechanisms that control price flashing

  B. A manual kill button that disables the system's ability to trade and cancels all resting orders may not be established without Central Bank approval

  C. The sudden withdrawal of a specific credit limit or limits in a tactical manipulation to mislead the market is unethical

  D. Algorithms require appropriate supervision performed by staff with commensurate levels of experience

  Correct Answer: B

• Question 277:

  You are quoted the following rates:

  Spot USD/JPY97.10-15 3M USD/JPY swap 9/6 Spot USD/CHF 0.9320-23 3M USD/CHF swap 11/8

  Where can you sell CHF against JPY 3-month outright?

  A. 104.14

  B. 104.21

  C. 104.23

  D. 104.30

  Correct Answer: A

• Question 278:

  If a dealer needs to hedge an over-lent 3x6 position against 1MM dates for which the FRA is quoted 1.301.34% and futures at 98.64, which would be cheapest for him (ignoring margin costs on futures positions) to cover his gap?

  A. FRA

  B. Futures

  C. No difference

  D. Too little information to decide

  Correct Answer: A

• Question 279:

  The delta of an `at-the-money' long call option is:

  A. Between +0.5 and +1

  B. +0.5

  C. Between 0 and +0.5

  D. Zero

  Correct Answer: B

• Question 280:

  A long collar is:

  A. A purchase of a cap and a sale of a floor

  B. A purchase of a floor and a sale of a cap

  C. A purchase of a cap and a purchase of a floor

  D. A sale of a cap and a sale of a floor

  Correct Answer: A