ACI ACI Certifications 3I0-012 Questions & Answers

• Question 401:

  How is an outright forward FX transaction quoted?

  A. pared points

  B. Depends on the term

  C. Depends on whether it is interbank or to a customer

  D. Depends on the currency pair

  Correct Answer: C

• Question 402:

  Principals who enter into an interest rate swap with the intention of shortly afterwards assigning or transferring the swap to a third party:

  A. should never reveal their future dealing intentions to their counterparties

  B. should make clear their intention to do so when initially negotiating the deal

  C. should agree upon the method of assignment before transacting

  D. should only reveal any such intentions after the confirmations have been exchanged

  Correct Answer: B

• Question 403:

  A bank quotes 3-month EUR deposits at 0.45% ¡ª 0.55% to its broker. The broker lifts the bank's offer at 0.55%. Which of the following steps must the broker take?

  A. The broker must show the borrower's name to the lender first and disclose the lender's name only if the borrower is acceptable to the lender.

  B. The broker must show the lender's name to the borrower first and disclose the borrower's name only if the lender is acceptable to the borrower.

  C. The broker must show the borrower's and lender's names to each other at the same time.

  D. For marketing reasons, the broker can show the lender's name to the borrower at any time.

  Correct Answer: A

• Question 404:

  Where dealing for personal account is allowed, what safeguards to prevent abuse or insider dealing are stated by the Model Code?

  A. The need to maintain confidentiality with respect to non-public price sensitive information

  B. The maximum amounts or sizes of trades dealers are allowed to trade for their own account

  C. The instruments/products dealers can trade for their own account

  D. The pledge that no action is taken by employees that might adversely affect the interests of clients or counterparties

  Correct Answer: B

• Question 405:

  Principals are allowed to:

  A. visit a broker's dealing room to arrange or confirm deals

  B. visit a broker's dealing room with the permission of the management of both parties

  C. deal from within a broker's dealing room with the permission of the broker's management

  D. place an order with a broker from within the same broker's office

  Correct Answer: B

• Question 406:

  What needs to be done in the event that a trade is amended by one or both parties?

  A. A new confirmation should be generated by both parties but there is no need to restart the confirmation cycle.

  B. The amending party should verbally inform the other party.

  C. A new confirmation should be generated and the confirmation cycle should restart and continue until the trade is completely matched by both parties.

  D. A new confirmation need not be generated but the confirmation cycle must restart and continue until the trade is completely matched by both parties.

  Correct Answer: C

• Question 407:

  Management has a specific responsibility to issue guidelines to staff on transacting after-hours and off-premises. Which of the following does the Model Code suggest?

  A. Dealing should only be allowed during normal trading hours.

  B. It is not recommended that an unofficial close of business be specified for each trading day.

  C. There should be clear written guidelines regarding the limit and type of deals that are permitted after normal hours or off-premises.

  D. All after-hours and off-premises transactions must be dealt exclusively with the dealer's personal mobile phones

  Correct Answer: C

• Question 408:

  You have bought a 93-day US Treasury bill at 5.63%. What is the true yield?

  A. 5.71%

  B. 5.69%

  C. 5.72%

  D. 5.62%

  Correct Answer: A

• Question 409:

  When is interest conventionally due on a 3-year interbank EUR deposit?

  A. At maturity

  B. Annually

  C. Semi-annually

  D. Quarterly

  Correct Answer: B

• Question 410:

  What is the expression used to describe a genuine error (wrong amount, wrong side, wrong rate) made by a dealer in the execution of an order on an electronic platform?

  A. mis-stroke

  B. slip-bid

  C. mis-hit

  D. broken trade

  Correct Answer: C