ACI ACI Certifications 3I0-012 Questions & Answers

• Question 291:

  From the following CAD rates:

  1M (31-day) CAD deposit 0.95% 1x2 CAD (30-day) FRA 1.21% 2x3 CAD (31-day) FRA 2.01%

  Calculate the 3-month implied cash rate.

  A. 1.42%

  B. 1.39%

  C. 2.01%

  D. 4.21%

  Correct Answer: B

• Question 292:

  Using the following rates:

  3M (90-day) EUR deposit 0.25%

  6M (180-day) EUR deposit 0.50%

  What is the rate for a EUR deposit, which runs from 3 to 6 months?

  A. 0.25%

  B. 0.375%

  C. 0.75%

  D. 0.50%

  Correct Answer: C

• Question 293:

  The two-week repo rate for the 5.25% Bund 2011 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000.00, but insist on an initial margin of 2%. You would earn repo interest of:

  A. EUR 337,874A0

  B. EUR 342,947.58

  C. EUR 337,739.24

  D. EUR 342,810.40

  Correct Answer: A

• Question 294:

  What is an outright forward FX transaction?

  A. A spot sale (purchase) and a forward purchase (sale)

  B. A spot sale (purchase) and a forward sale (purchase)

  C. An exchange of currencies on a date beyond spot and at a price fixed today

  D. An exchange of currencies on a date beyond spot

  Correct Answer: C

• Question 295:

  If a 12-month AUD/NZD swap is quoted 53/47, which of the following statements would you consider to be correct?

  A. 12-month AUD rates are higher than 12-month NZD rates

  B. 12-month AUD rates are lower than 12-month NZD rates

  C. Spot AUD/NZD will be higher by approximately 50 points in 12 months

  D. The AUD yield curve is positive, whilst the NZD curve is negative

  Correct Answer: A

• Question 296:

  You wish to sell a customer GBP/USD for value tomorrow. How can you hedge yourself?

  A. Sell and buy GBP/USD T/N

  B. Buy and sell GBP/USD T/N

  C. Sell GBP/USD spot, and sell and buy GBP/USD T/N

  D. Buy GBP/USD spot, and buy and sell GBP/USD T/N

  Correct Answer: D

• Question 297:

  When may a broker assume a deal is closed?

  A. When one of the principals confirms the deal

  B. When the principals give a written undertaking for all deals done at the end of the day

  C. When acknowledgement is received from the principals that the deal is done

  D. When both back offices acknowledge the deal

  Correct Answer: C

• Question 298:

  What is the recommended follow-up procedure in case of a settlement discrepancy?

  A. All investigation cases should be handled within the same day B. All investigation cases should be handled within 2 days

  B. Investigation cases received before noon should be handled within the same day and those received after midday should be handled before noon the next day

  C. Investigation cases received before noon should be handled within the same day and those received after midday within 24 hours

  Correct Answer: C

• Question 299:

  In dealing terminology, what does "my risk" refer to?

  A. the market amount for which the quote is valid

  B. the acknowledgement by the broker that he may be stuffed

  C. the acknowledgement by the dealer receiving the quote that the rate may have to be re-quoted

  D. the quoting dealer cautions the receiver of the quote that the price may have to be re-quoted at the receiver's risk

  Correct Answer: A

• Question 300:

  Which one of the following statements about "CLS rescinds" is correct?

  A. CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 00:00 CET deadline.

  B. CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 06:30 CET deadline.

  C. CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank before the 00:00 CET deadline.

  D. CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank after the 06:30 CET deadline.

  Correct Answer: A