ACI ACI Certifications 3I0-012 Questions & Answers

• Question 321:

  You have quoted a Swiss customer spot USD/CHF as 0.9273-78, but he asks you to quote it as CHF/ USD. What do you quote?

  A. 0.9278-73

  B. 1.0784-78

  C. 1.0778-84

  D. 1,0773-78

  Correct Answer: C

• Question 322:

  How is a USD Overnight Indexed Swap (OIS) settled?

  A. Periodic exchange of fixed and floating payments up to and including maturity

  B. At maturity by net payment

  C. After maturity by exchange of fixed and floating payments

  D. Two days after maturity by net payment

  Correct Answer: D

• Question 323:

  An `at-the-money' call option:

  A. Costs more than an `in-the-money' call option

  B. Costs less than an `out-of-the-money' call option

  C. Costs more than an `out-of-the-money' call option

  D. Costs the same as an `in-the-money' put option

  Correct Answer: C

• Question 324:

  Under what circumstances are banks allowed to "park" deals or positions with a counterparty?

  A. Not under any circumstances, since the "parking" of deals or positions should be prohibited

  B. in conditions of exceptional volatility

  C. only if the two counterparties to the deal agree

  D. only if "parking" of deals or positions has been approved by senior management

  Correct Answer: A

• Question 325:

  Any breaches in confidentiality should be:

  A. documented and reported to the local regulator

  B. communicated to local staff by a confidential internal circular

  C. investigated immediately according to a properly documented procedure

  D. reported to the ACI's Committee for Professionalism to investigate and advise accordingly

  Correct Answer: C

• Question 326:

  An FX forward outright has been dealt for a value date which is subsequently declared to be a bank holiday. According to the Model Code, the exchange rate for the deal:

  A. should be adjusted to take account of the change in value date

  B. cannot be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep the original rate

  C. must be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep the original rate

  D. should be adjusted if the adjustment is for two days or longer but not if it is for only one day

  Correct Answer: A

• Question 327:

  Under what conditions can an FX broker act as a position taker?

  A. if a principal refuses to honour the deal

  B. no conditions are required; the broker is entitled to take positions

  C. only if he can not find another counterparty for a name switching

  D. brokers act only as intermediaries or arrangers of deals

  Correct Answer: D

• Question 328:

  A prime broker may not reject a trade given up if:

  A. the trade is not within the specified tenor limits

  B. the trade is not within the specified credit limits

  C. the trade details provided by the executing dealer and the client match

  D. the trade is a permitted transaction type as specified in the give-up agreement with the executing dealer

  Correct Answer: D

• Question 329:

  Is gambling or betting between market participants allowed?

  A. Yes, it is allowed for sporting events.

  B. Yes, it is allowed if no money is involved.

  C. Although not prohibited, it is strongly discouraged.

  D. It is allowed for purposes of charity.

  Correct Answer: C

• Question 330:

  What is a "normal" shaped curve?

  A. Gradual positive slope

  B. Steep positive slope

  C. Flat

  D. Inverted

  Correct Answer: A