ACI ACI Certifications 3I0-012 Questions & Answers

• Question 531:

  Under Basel rules the risk weight for MA-rated claims on corporate in the standardized approach

  A. 0%

  B. 15%

  C. 20%

  D. 75%

  Correct Answer: C

• Question 532:

  What is the meaning of CCP within the Basel framework?

  A. Collateralized Clearing Process

  B. Central Clearing Counterparty

  C. Collateralized Counterparty Protection

  D. Collateralized Credit Protection

  Correct Answer: B

• Question 533:

  Under Basel III rules the meaning of RSF is:

  A. Reviewed Supervisory Factor

  B. Required Stable Funding

  C. Riskless Stable Funding

  D. Riskless Supervised Funding

  Correct Answer: B

• Question 534:

  Which of the following risks are considered market risks?

  A. interest rate, currency, equity and commodity risk

  B. interest rate, currency, equity and default risk

  C. interest rate, equity, liquidity and default risk

  D. legal, reputation and regulatory risk

  Correct Answer: A

• Question 535:

  Which of the following are all goals of the originator of securitized assets?

  A. to increase funding diversification , to reduce funding costs, to achieve regulatory and accounting benefits, to increase the size of the balance sheet

  B. to increase funding diversification , to reduce funding costs, to achieve regulatory and accounting benefits

  C. to increase funding diversification , to reduce operational risk, to achieve regulatory and accounting benefits, to decrease the size of the balance sheet

  D. to increase funding diversification , to reduce operational risk, to achieve regulatory and accounting benefits, to increase the size of the balance sheet

  Correct Answer: B

• Question 536:

  A closed position in a particular foreign currency exists:

  A. when the net spot position plus the forward position plus the delta equivalent of the foreign currency options book add up to zero

  B. when the forward purchases of a foreign currency are equivalent to the equity position in that same currency

  C. when the reverse repurchases of foreign currency are equal to the forward purchases of the functional currency

  D. when the maturity structure of the assets in one currency is closely matched to the maturity structure of liabilities in another

  Correct Answer: A

• Question 537:

  Which one of the following statements about mark-to-model valuation is correct?

  A. Mark-to-model valuation is used for exchange-traded positions to ensure correct pricing.

  B. Asset managers are not allowed to use mark-to-model valuation.

  C. Mark-to-model valuation is used for complex financial instruments; it is always accurate and in line with potential tradable prices.

  D. Mark-to-model valuation refers to prices determined by financial models, rather than actual market prices.

  Correct Answer: D

• Question 538:

  Using reprising gap analysis, a bank's balance sheet is considered liability-sensitive to market interest rate changes, if:

  A. more liabilities than assets will be reprised in the near term

  B. more assets than liabilities will be reprised in the near term

  C. more assets than liabilities have variable rates or short residual maturities

  D. non-interest bearing liabilities are greater than non-interest bearing assets

  Correct Answer: A

• Question 539:

  Which of the following statements about the Liquidity Coverage Ratio is correct?

  A. The LCR is a measure to ensure that the reserve of high quality liquid assets is sufficient to cover short term demand for liquidity in a stress situation.

  B. the ratio (cash outflow in a 30-day stress period divided by high quality liquid assets) has to be greater than 100%.

  C. Covered bonds are class 1 assets.

  D. Obligations issued by central banks or government agencies are class 2 assets.

  Correct Answer: A

• Question 540:

  Which of the following statements is correct regarding duration?

  A. It is a measure of the average price of a financial instrument.

  B. It doesn't take into account the timing and market value of cash flows.

  C. It increases if the average coupon increases.

  D. It decreases as maturity decreases

  Correct Answer: D