ACI ACI Certifications 3I0-012 Questions & Answers

• Question 451:

  What rates should a panel bank contribute to the EURIBOR fixings?

  A. The offer side of the quotes it is making to other banks

  B. The offer side of the quotes which it is receiving from other banks

  C. The offer side of the interbank quotes it observes being made by prime banks

  D. The offer side of the quotes it has actually borrowed at

  Correct Answer: C

• Question 452:

  EURIBOR is the:

  A. Daily fixing of EUR interbank deposit rates in the European market

  B. Daily fixing of EUR interbank deposit rates in the London market

  C. Another name for EUR LIBOR

  D. The ECB's official repo rate

  Correct Answer: A

• Question 453:

  A USD deposit traded in London between two German banks is cleared:

  A. Wherever the parties agree

  B. In London

  C. In NewYork

  D. In Frankfurt

  Correct Answer: C

• Question 454:

  If the issuer of the collateral used in a repo defaults during the term of the transaction, who suffers the loss?

  A. Buyer

  B. Seller

  C. Issuer

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

  Correct Answer: B

• Question 455:

  What is the Purchase Price of a repo?

  A. The market value of bond collateral at the start of the repo at the clean price of the bond

  B. The market value of bond collateral at the start of the repo at the dirty price of the bond

  C. The amount of cash actually paid for collateral at the start of the repo

  D. The amount of cash actually paid for collateral at the start of the repo plus repo interest

  Correct Answer: C

• Question 456:

  A CD with a face value of USD 250,000,000.00 was issued at par with a coupon of 5% for 91 days.

  You buy it in the secondary market when it has 30 days remaining to maturity and is trading at 5.25%. How much do you pay?

  A. USD 252,056,972.97

  B. USD 252,028,916.32

  C. USD 250,000,000.00

  D. USD 248,911,014.31

  Correct Answer: A

• Question 457:

  Where voicemail equipment is used for the reporting and recording of off-premises transactions, voice mail should be:

  A. installed on secret number known only to the chief dealer

  B. installed and located in the office of the head of compliance

  C. installed and located in such a way that reported transactions cannot be subsequently erased without senior management approval.

  D. securely saved by recordings that have to be stored for at least a twelve-month period

  Correct Answer: C

• Question 458:

  In a plain vanilla interest rate swap, the "fixed-rate payer":

  A. has established the price sensitivities of a longer-term fixed-rate liability and a floating-rate asset

  B. has established the price sensitivities of a longer-term fixed-rate asset and a floating-rate liability

  C. receives fixed in the swap

  D. pays floating in the swap

  Correct Answer: A

• Question 459:

  All prices quoted by brokers should be taken to be:

  A. under reference

  B. firm, but not necessarily in marketable amounts

  C. firm, unless otherwise qualified

  D. merely indicative

  Correct Answer: C

• Question 460:

  What should a broker do if his quoted price is hit simultaneously by several dealers for a total amount greater than that for which the price concerned was valid?

  A. allot the amount for which the price is valid pro rata amongst some principals in accordance with the amount proposed by each and inform the other dealers that "nothing was done"

  B. decide which principals he will allot the amount for which the price is valid and inform the other dealers that "nothing was done"

  C. evenly allocate the amount for which the price is valid amongst all the principals and inform all the relevant dealers

  D. apportion the amount for which the price is valid pro rata amongst all the principals concerned in accordance with the amount proposed by each and inform all the relevant dealers

  Correct Answer: D