ACI ACI Certifications 3I0-012 Questions & Answers

• Question 491:

  What is the ISO code for the Indian rupee?

  A. IDR

  B. RUP

  C. INR

  D. IND

  Correct Answer: C

• Question 492:

  Cable is quoted at 1.5575-80 and you say "5 yours!" to the broker. What have you done?

  A. Sold USD 5,000,000.00 at 1.5575

  B. Sold GBP 5,000,000.00 at 1.5575

  C. Bought GBP 5,000,000.00 at 1.5580

  D. Bought USD 5,000,000.00 at 1.5580

  Correct Answer: B

• Question 493:

  For which country's currency is SEK the ISO code?

  A. South Korea

  B. Sri Lanka

  C. Slovakia

  D. Sweden

  Correct Answer: D

• Question 494:

  3-month USD/CHF is quoted at 12/10. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?

  A. unchanged

  B. 15/13

  C. 10/8

  D. 6/4

  Correct Answer: B

• Question 495:

  Which one of the following bullion coins has a 999.9/1000 gold purity (.9999 fineness)?

  A. the Canadian "Maple Leaf"

  B. the South African "Krugerand"

  C. the American "Gold Eagle"

  D. the United Kingdom "Sovereign"

  Correct Answer: A

• Question 496:

  What is the Gold Offered Forward Rate (GOFO)?

  A. the price differential between spot and forward gold prices

  B. the rate at which dealers will lend gold against US dollars

  C. the implied forward price of gold

  D. the price of gold for forward delivery

  Correct Answer: B

• Question 497:

  The Interest Rate Parity Theorem should work because, when one sells a low interest rate currency to invest in a high interest rate currency and hedges the currency risk:

  A. The cost of hedging is given by the forward points, which are equal to the interest rate differential between the two currencies

  B. The high interest rate currency will depreciate

  C. The profit from the appreciation of the high interest rate currency has been hedged away

  D. Interest rates are mean reverting, which means the low interest rate will tend to rise and the high interest rate will tend to fall

  Correct Answer: A

• Question 498:

  You buy a 181-day 2.75% CD with a face value of USD 1,500,000.00 at par when it is issued. You sell it in the secondary market after 150 days at 2.60%. What is your holding period yield?

  A. 2.60%

  B. 2.75%

  C. 2.775%

  D. 2.813%

  Correct Answer: C

• Question 499:

  A CD with a face value of USD 50,000,000.00 and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss since issue?

  A. +USD 373,599.00

  B. +USD 186,099.00

  C. -USD 1,400.99

  D. Nil

  Correct Answer: C

• Question 500:

  What is the Repurchase Price of a classic repo?

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

  B. The market value of bond collateral at the end 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: D